Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Goodwill Industries is a major charitable organization that relies primarily on financial and nonfinancial donations and grants. It has retail operations that help sustain its
Goodwill Industries is a major charitable organization that relies primarily on financial and nonfinancial donations and grants. It has retail operations that help sustain its financial operations so as to fulfill its mission to help train, support, and employ disadvantaged individuals and those with disabilities.
The video introduces the accounting function and the specific steps involved in the accounting cycle. The similarities and differences between forprofit and notforprofit entities are discussed in detail. The importance of accounting in providing financial information and analysis is featured. Emphasis is placed on financial statements as well as ratio analysis in helping gauge the financial health of the organization.
Accounting is crucial for all organizations, whether they are a small business, large corporation, or a governmental or notforprofit organization. The different types of accounting are discussed, including managerial, financial, tax, auditing, governmental, and notforprofit. Balance sheets, income statements, and statements of cash flows provide important information for managers and others in the organization, helping demonstrate whether the organization is on budget or whether there are variances between projected and actual revenues. Costs and expenses have to be kept in line and are carefully monitored and analyzed by the accounting function.
Sufficient cash flow is critical to the sustainability of any organization, particularly the notforprofit organization; in this case, Goodwill. Notforprofit organizations utilize performance ratio analysis to gauge their overall financial performance. The results of these analyses help management assess the organization's performance against its plan or budget. They also help develop strategic plans for the future as well as benchmark against other similar companies.
What's the difference between assets and liabilities? Which of the key financial statements features these categories prominently?
Identify the six steps in the accounting cycle.
What are the key reasons that firms do ratio analysis?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started