What is fund accounting? According to the authors of your textbook, Debra C. Jeter and Paul K. Chaney (2022), “Accounting for nonbusiness organizations is
referred to as fund accounting. Nonbusiness organizations are economic entities that are organized to provide a socially desirable service without regard to
financial gain. In contrast, business enterprises are designed to earn a return on investment for equity investors, operate in a competitive market, and face
liquidity concerns.”
In this short paper, you will explore fund accounting, including the principles, standards, and methods used. You will also explain the differences between
government entities, nonprofit entities, and partnerships.
Directions
Use the resources for the principles, standards, and methods for the different types of organizations, linked in the Supporting Materials section, and your
textbook to research fund accounting. Also use the resources to research the differences between government entities, nonprofit entities, and partnerships.
Specifically, you must address the following rubric criteria:
Explain the principles and methods used for fund accounting.
Explain how government entities use fund accounting.
Explain how nonprofit entities use fund accounting.
Describe at least one rule for each of the following:
Government entities
Nonprofit entities
Partnerships
Your response should include a total of three to six rules.
Explain at least three main differences between the following:
Government entities
Nonprofit entities
Partnerships
