Governments and not-for-profits entities operate differently than for-profit business entities. Before you can understand governmental and not-for-profit accounting, you need to understand the differences in characteristics, financial reporting and users of financial reports.

Discuss answers to the following questions and justify your response:

Describe the characteristics that distinguish not-for-profit organizations form business enterprises.

Describe the characteristics of governmental and not-for-profit accounting financial reporting that are unique from business enterprises.