Topic: Comprehensive Annual Financial Report (CAFR)
State and local governments are accountable to much more than private investors. They are accountable to the community as a whole. Communities are required to publish a comprehensive annual financial report (CAFR). Please locate a state or local government’s comprehensive annual financial report (CAFR) and answer the following questions:
- How does the CAFR compare to a traditional for-profit business?
- What are the major sources of revenue?
- What are the major expenditures?
- Do you feel that this entity is healthy?
- What are some areas of improvement?
Topic: Evaluating the Not-For-Profit Entity
In the accounting world, you find that there are many benefits to becoming a not-for-profit entity. These may be so considerable that traditional for-profit entities forgo their profit making potential. With this in mind, please answer the following questions:
- Please identify an industry where the for-profit companies are being outweighed by not-for-profit companies.
- Please identify an industry where the not-for-profit companies are being outweighed by for-profit companies?
- What are the advantages of the not-for-profit company vs. the for-profit company?
- For which entity (i.e., non-profit or for-profit) is it is easier to raise capital?
- If you were forming a new hospital business, would you choose to be a for-profit hospital or a not-for-profit hospital? Please justify your response.
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