Non-Profit Organizations and Public Services

Budgets are used to summarize past financial activities

Fund accounting is used to manage resources for the purpose of making a profit

A fund is defined as a fiscal and accounting entity with a non-self-balancing set of accounts

Fund accounting is used to organize and manage resources in accordance with regulations imposed by internal parties

A clear distinction is maintained between funds that are internally restricted and those that are externally designated by the governing board

Fund accounting is used to organize and manage resources for a single purpose

Privately organized not-for-profit organizations do not possess characteristics of governmental units.

Hospitals are always closed to the general public.

All not-for-profit organizations provide a statement of financial position and a statement of revenues and expenses.

Privately organized service organizations are all similar in size, nature, and diversity of operations.

Contributions are not an important part of the financing program for privately organized service organizations.

Privately organized service organizations do not require books and records to summarize financial transactions.