Describe the main differences for revenue spending between ""for profit"" companies and ""not for profit"" companies. Describe how the main financial documents of Goodwill are similar to those companies that are ""for profit"". Describe how the main financial documents of Goodwill are difference to those companies that are ""for profit"".

Answers

Answer 1
Answer:

Answer with Explanation:

Requirement 1:

1. Profit Organization

The aim of profit organization is to maximize the wealth of shareholders by increasing its profits. The owners of the company get dividends and appreciation in the value as a return from the company.

2. Nonprofit Organization

The primary mission of Non-profit organization is to benefit the community by helping them and the earnings generation is not the primary goal of the company. ACCA is an entity that delivers quality education to its students and also earns profit on it but the profit margin kept is as low as possible to keep its operation running. Other examples are Rolex, NGO's, National Health Institutes, etc.

In other words, these institutes are for charitable purpose and their primary objective is not making profits.

Key Difference Between Profit Organization and Non-profit Organization​​​​​

  • A profit organization's primary objective is to maximize profits whereas the Non profit organizations work for delivering services and products that helps in uplifting the society from their donations.
  • A profit organization is registered as a sole proprietorship or partnership or a corporation. Whereas Non profit organization is registered as a charity club, association of person, trust, corporations, etc.
  • Usually major source of income of Non profit organization comes from donations, government and corporation grants, subscriptions, etc. Whereas the major source of profit organization is income generated from the sale of goods and services. Non profit organization - the major incomes are donation, grant, legacies, subscription, etc.

Requirement 2:

Profit making organization have to publish all financial statements which includes income statement, balance sheet, cash flow statement, statement of changes in equity, etc whereas the non profit organization only publishes balance sheet and cash flow statement. If the Non profit organization is involved in selling of products and services then the organization will also have to prepare income statement.

The non profit organization doesn't pays andy dividends as it is a charity firm and all it does is, it spends it money for the welfare of the community. Whereas the profit organization have to retain a share of earned profits and then distributes the remainder to shareholders.

The profit making organization publishes changes in equity statement whereas the charitable firm is not required to publish such things because its primary objective is to spend on the welfare of the community.


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Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure, called core inflation, Group of answer choices is more consistent with measures of inflation used in other countries. fluctuates more than measures of inflation that include food and energy prices. gives a better measure of ongoing, sustained price changes. provides a real, rather than a nominal, rate of inflation.
Landis received $90,000 cash and a capital asset (basis of $50,000, fair market value of $60,000) in a proportionate liquidating distribution. His basis in his partnership interest was $120,000 prior to the distribution. How much gain or loss does Landis recognize, and what is his basis in the asset received?a. $0 gain or loss; $30,000 basis.b. $0 gain or loss; $50,000 basis.c. $0 gain or loss; $60,000 basis.d. $20,000 gain; $50,000 basis.e. $30,000 gain; $60,000 basis.
Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Compute the missing amounts. Operating Data Women’s Shoes Men’s Shoes Children’s Shoes Contribution margin $304,020 $ (3) $202,680 Controllable fixed costs 112,600 (4) (5) Controllable margin (1) 101,340 106,970 Sales 675,600 506,700 (6) Variable costs (2) 360,320 281,500 Prepare a responsibility report for the Women’s Shoes Division assuming (1) the data are for the month ended June 30, 2020, and (2) all data equal budget except variable costs which are $5,630 over budget. SWIFTY INC. Women’s Shoe Division Responsibility Report For the Month Ended June 30, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
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you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?

Answers

Answer:

After 25 years you will have in your account $42,782.05.

Explanation:

First find the Future value of $19000 invested today at the end of 11 years.

PV = - $19,000

Pmt = $0

P/yr = 1

r = 3.30%

n = 11

FV = ?

Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.

Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%

PV = - $27,155.46

Pmt = $0

P/yr = 1

r = 3.30%

n = 14

FV = ?

Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.

Thus, after 25 years you will have in your account $42,782.05.

An investment had a nominal return of 11.1 percent last year. If the real return on the investment was only 7.3 percent, what was the inflation rate for the year

Answers

Answer:

inflation rate= 3.8%

Explanation:

Giving the following information:

Nominal return= 11.1 percent

Real return= 7.3 percent

The real return on investments is the difference between the nominal return and the inflation rate.

Real return= nominal return - inflation rate

inflation rate= nominal return - real return

inflation rate= 11.1 - 7.3

inflation rate= 3.8%

Final answer:

The inflation rate is determined by subtracting the real return on an investment from its nominal return. In this case, the inflation rate is 3.8 percent.

Explanation:

The inflation rate can be calculated by subtracting the real return from the nominal return. In this case, the nominal return is 11.1 percent and the real return is 7.3 percent.

To calculate the inflation rate, we use the formula: Inflation rate = Nominal return - Real return. So, the inflation rate would be: 11.1 - 7.3 = 3.8 percent.

This means that the value of money decreased by 3.8 percent over the course of the year due to inflation.

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After a few years of work in the marketing department of a small firm, you are placed in charge of the firm's inbound marketing. What are you most likely to be in charge of? Group of answer choices

Answers

Answer:

Ensure that customers can find the firm when they search for information on products and services.

Explanation:

Inbound marketing involves attracting customers to a business's products and services by improved customer service and building trust.

Various channels that can be used for inbound marketing are social media, content marketing, search engine optimisation, and branding.

Outbound marketing on the other hand involves pushing out of various products an services to customers via various channels.

Steps in inbound marketing are:

Define the customer

Understanding customer purchase cycles

Establish potential customer

Build loyalty

Use customer relationship management (CRM)

Content management

Use Beneish’s earnings manipulation model to compute the probability that Enronengaged in earnings manipulation for 1998, 1999, and 2000.b. Identify the major reasons for the changes in the probability of earnings manipulationduring the three-year period.

Answers

Answer:

1998, 1999, 2000:

Index value : -4.840, -4.840, -4.840

Days Receivable Index : 0.7243, 1.0546, 1.2562

Gross Margin Index : 0.5640, 0.4513, 0.2463

Asset Quality Index : 0.4293, 0.4300, 0.3116

Sales Growth Index : 1.3594, 1.1446, 2.2413

Depreciation Index : 0.1160, 0.1151, 0.0908

Selling & Admin Expense Index : 0.1962, 0.1650, -0.0716

Leverage Index : -0.2720, -0.2453, -0.3656

Total Accruals to Total Assets: -0.1491, -0.0285, -0.2709

Probability using norms-dist: 1.8% , 1.86%, 8.05%

Explanation:

Beneish's earning manipulation model is used to ascertain the probability of manipulation in the financial data. In this model ratio are calculated and then their index is identified to know an indication of possibility of fraud. In the given scenario the probability of manipulation is too high. The data is assessed through applying beneish model to understand actual financial position of the company.

Ernest invents a novel, useful, nonobvious product. He:____.a. must apply for a patent within one year of selling the product commercially.
b. may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application.
c. is entitled to a patent over someone else who invents the same product if he is the first to invent it.
d. may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.

Answers

Answer:

a. must apply for a patent within one year of selling the product commercially.

Explanation:

As the product is the novel and also useful at the same time so he himself wants to try for the commercial purpose for reaping the benefits and the same should be used for a patent within one year for selling the product commercially manner

So as per the given situation, the option a is correct

And, the rest of the options seems incorrect

5. Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots. a. What additional annual cost is the shop incurring by staying with this order size

Answers

If Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots:

  • a. What additional annual cost is the shop incurring by staying with this order size will be: $105.24
  • b. What benefit would using the optimal order quantity yield will be 51.63%

a. Additional annual cost

Annual demand (D) =$750 x 12= $9,000

Ordering cost=$20 per order

Annual carrying costs(H)=0.30 ×$2.00 = $0.60

Order Quantity(Q) = 1,500

Find TC for Q

TC=Q÷2×H + D÷Q × S

TC=1,500÷2 × $0.60 + $9,000÷1,500×$20

TC=$450+$120

TC=$570............. (1)

Now find Qo

Qo=√2DS÷H

Qo=√2×$9,000×$20÷0.60

Qo=√600,000

Qo=$774.596

Qo=$774.60 (Approximately)

Find TC for Qo

TC=Q÷2×H + D÷Q ×

TC=774.60÷2 × $0.60 + $9,000÷774.60×$20

TC=$232.38+$232.38

TC=$464.76................(2)

Now let determine the additional annual cost

Additional annual cost=$570-$464.56

Additional annual cost=$105.24

b. Benefit would using the optimal order quantity yield (relative to the order size of 1,500)

Benefit=Qo÷Q

Benefit=$774.60÷1,500×100

Benefit=51.63%

The benefit is that about 51.63% of the storage space would be needed.

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Answer:

Additional cost= $570

Explanation:

Monthly demand = 750

Annual demand (D) = Monthly Demand x Number of months in a year

Annual demand (D) = 750 x 12 = 9,000

Cost (C) = $2.00 each

Annual carrying costs (Cc) = 30 percent of cost

Annual carrying costs (Cc) = 30% of $2.00 = $0.60

Ordering costs (Co) = $20

Current order quantity (Q1) = 1,500

Solution:

(a) Current cost is calculated as,

Current cost = Annual carrying costs + Annual ordering costs

Current cost = [(Quantity / 2) x Carrying cost] + [(Annual demand / Current Quantity) x Ordering cost]

Current cost = [(1500 / 2) x $0.60] + [(9000 / 1500) x $20]

Current cost = $450 + $120

Current cost = $570

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