Government and for-profit organizations Coursework

Government and for-profit organizations - Coursework ExampleReporting entity is referred to any business approximate that is entrusted with reporting responsibilities. In context of this paper, both kinds of organizations are reporting entities, who have the obligation of preparing financial reports for usefulness and interest of various stakeholders. physicalness is one of the GAAP conventions that are followed by all organizations irrespective of their nature of business. Materiality explains that an organization should discuss only significant information in its financial reports that of accounting nature. Lastly, full divine revelation explains that every organization should disclose all necessary information so that financial position of the wet is correctly presented and understood. Additionally, these two kinds of organizations share certain similarities in terms of components of financial statements as well such(prenominal) as journal, trial balance and ledger (Carmichael & Graham, 2012 Delaney & Whittington, 2007).Another point of similarity that can be recognized in the midst of giving medication and commercial organizations is debt refunding. Both these organizations are significantly engaged in debt refunding. In other words, they work new debts whose proceeds are employed for paying off previous debt. The sole reason bum both organizations engaged in this activity is to ensure security of their financial gain (GASB, 2013).Dissimilarities between government and non-government organizations accountingGovernment organizations are significantly different from various for-profit firms in a number of ways.