Problem 2: Characteristics of various organizations

Listed below are some identifying characteristics of organizations. Type an X in the appropriate column(s) to indicate which characteristics apply to each type of organization. Some characteristics apply to more than one type of organization.

Type of organization

Characteristic	For profit business	Nonprofit	State and local government
Operates according to a legal budget
Reports entity-wide financial statements
Uses accrual basis of accounting
Has equity shareholders
Uses modified accrual basis of accounting
Financial reporting includes reporting funds
Pays federal income taxes on unrelated business income
Files federal income tax returns
Reports deferred inflows and outflows of resources
Revenues come primarily from involuntary, nonexchange trans actions
Reports economic resources