Advanced Accounting II_WIU

by Patton, Patton, Ives, Hamlen

ISBN: 978-1-61853-264-0 | Copyright 2019

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Accounting for Governmental and Nonprofit Organizations (pg. 1.1-1)
Chapter 1: Governmental and Nonprofit Accounting Environment and Characteristics (pg. 1.1-1)
Governmental and Nonprofit Organizations (pg. 1.1-3)
The Operating Environment (pg. 1.1-4)
Organizational Purposes (pg. 1.1-4)
Sources of Revenue and Relationship with Stakeholders (pg. 1.1-4)
Potential for Longevity (pg. 1.1-5)
Role of the Budget and Legal Requirements (pg. 1.1-5)
Users and Uses of Accounting Information (pg. 1.1-6)
Objectives of Financial Reporting (pg. 1.1-7)
State and Local Government Financial Reporting (pg. 1.1-7)
Federal Government Financial Reporting (pg. 1.1-7)
Nonprofit Organization Financial Reporting (pg. 1.1-8)
Distinctive Accounting and Financial Reporting Characteristics (pg. 1.1-8)
Use of Fund Accounting (pg. 1.1-8)
Incorporation of Budgets into Accounting Systems (pg. 1.1-9)
Measurement Focus and Basis of Accounting (pg. 1.1-9)
Entity-Wide and Fund-Level Reporting (pg. 1.1-9)
Financial Reporting of Restricted Resources (pg. 1.1-10)
Accounting Principles and Standards (pg. 1.1-10)
Establishing Generally Accepted Accounting Principles (pg. 1.1-10)
Hierarchy of Generally Accepted Accounting Principles (pg. 1.1-11)
Organization of This Textbook (pg. 1.1-13)
 Questions (pg. 1.1-13)
Multiple Choice  (pg. 1.1-14)
 Exercises (pg. 1.1-15)
Solutions to Chapter 1 In-Chapter Review Questions  (pg. 1.1-16)
Chapter 2: The Use of Funds in Governmental Accounting (pg. 1.2-1)
Fund Accounting—The Fund Categories (pg. 1.2-3)
Funds as Subdivisions of an Entity (pg. 1.2-3)
Why Governments Use Fund Accounting (pg. 1.2-4)
Fund Categories (pg. 1.2-5)
Financial Reporting with the Use of Funds (pg. 1.2-6)
Measurement Focus and Basis of Accounting (pg. 1.2-7)
Governmental-Type Funds (pg. 1.2-9)
Measurement Focus, Basis of Accounting, and Financial Reporting (pg. 1.2-10)
General Fund (pg. 1.2-13)
Special Revenue Funds (pg. 1.2-16)
Capital Projects Funds (pg. 1.2-16)
Debt Service Funds (pg. 1.2-17)
Permanent Funds (pg. 1.2-18)
Proprietary Type Funds (pg. 1.2-19)
Enterprise Funds (pg. 1.2-20)
Internal Service Funds (pg. 1.2-20)
Reporting on Proprietary Type Funds (pg. 1.2-20)
Fiduciary Type Funds (pg. 1.2-24)
Pension (and Other Employee Benefit) Trust Funds (pg. 1.2-24)
Investment Trust Funds (pg. 1.2-25)
Private-Purpose Trust Funds (pg. 1.2-25)
Custodial Funds (pg. 1.2-25)
Reporting on Fiduciary Type Funds (pg. 1.2-26)
Questions  (pg. 1.2-28)
Multiple Choice  (pg. 1.2-28)
 Exercises (pg. 1.2-31)
 Problems (pg. 1.2-33)
Chapter 2 Case Study  (pg. 1.2-36)
Solutions to Chapter 2 In-Chapter Review Questions  (pg. 1.2-36)
Chapter 3: Budgetary Considerations in Governmental Accounting (pg. 1.3-1)
Balanced Budget Laws (pg. 1.3-3)
Budgetary Types and Approaches (pg. 1.3-4)
General Fund and Special Revenue Fund Budgets (pg. 1.3-5)
Capital Budgets and Plans (pg. 1.3-5)
Budgetary Approaches (pg. 1.3-5)
The Budget Process—Enactment Phase (pg. 1.3-6)
Illustrations of Budget Documents (pg. 1.3-7)
Service Efforts and Accomplishments (pg. 1.3-8)
Financing the Budget (pg. 1.3-9)
Raising Revenues (pg. 1.3-9)
Preparing Cash Forecasts to Determine Temporary Borrowing Needs (pg. 1.3-10)
The Budget Process—Execution Phase (pg. 1.3-11)
Classifying Revenues and Expenditures (pg. 1.3-13)
Revenue Classification (pg. 1.3-13)
Expenditure Classification (pg. 1.3-15)
Budgetary Accounting (pg. 1.3-16)
Recording the Adopted Budget (pg. 1.3-16)
Recording Budgetary Interchanges and Other Revisions (pg. 1.3-17)
Recording Encumbrances (pg. 1.3-19)
Recording Differences between Purchase Order and Invoice (pg. 1.3-20)
Allotment Systems (pg. 1.3-21)
Detailed Illustration (pg. 1.3-21)
Questions  (pg. 1.3-26)
Multiple Choice  (pg. 1.3-26)
 Exercises (pg. 1.3-27)
Problems  (pg. 1.3-30)
Continuing Problem  (pg. 1.3-32)
 Chapter 3 Case Study—Central Falls Bankruptcy (pg. 1.3-33)
 Solutions to Chapter 3 In-Chapter Review Questions (pg. 1.3-35)
Chapter 4: An Introduction to General and Special Revenue Funds (pg. 1.4-1)
Background (pg. 1.4-3)
The General Fund (pg. 1.4-3)
Special Revenue Funds (pg. 1.4-4)
Revenue and Expenditure Recognition (pg. 1.4-5)
Short-Term Financing and Investing (pg. 1.4-6)
Basic Entries in General and Special Revenue Funds (pg. 1.4-7)
The Scenario and the Budgets (pg. 1.4-7)
Transactions and Events and Resulting Journal Entries (pg. 1.4-8)
Fund Financial Statements (pg. 1.4-14)
Closing the Accounts (pg. 1.4-16)
Control Accounts and Subsidiary Ledgers (pg. 1.4-17)
Concluding Comments (pg. 1.4-18)
 Questions (pg. 1.4-19)
 Multiple Choice (pg. 1.4-19)
 Exercises (pg. 1.4-21)
 Problems (pg. 1.4-23)
Solutions to Chapter 4 In-Chapter Review Questions  (pg. 1.4-26)
Chapter 5: General and Special Revenue Funds (Continued) (pg. 1.5-1)
Recognition and Measurement—General Principles (pg. 1.5-3)
Property Tax Revenues and Receivables (pg. 1.5-6)
Basic Principles and Journal Entries (pg. 1.5-6)
Year-End Adjustments (pg. 1.5-7)
Summary Results, Prior Year Tax Levy, and Subsequent Year Transactions (pg. 1.5-8)
Tax Discounts (pg. 1.5-9)
Interest on Delinquent Taxes and Tax Liens (pg. 1.5-9)
Sales Tax and Personal Income Tax Revenues and Receivables (pg. 1.5-11)
Intergovernmental Grants and Other Revenues (pg. 1.5-13)
Intergovernmental Grants (pg. 1.5-13)
Fines, Fees, Licenses, and Miscellaneous Revenues (pg. 1.5-15)
Payments in Lieu of Taxes (pg. 1.5-15)
Expenditures and Fund Liabilities (pg. 1.5-16)
Recognizing Expenditures and Liabilities in Governmental Funds (pg. 1.5-16)
Applying Expenditure Recognition Standards to Specific Transactions and Events (pg. 1.5-17)
Interfund Transactions (pg. 1.5-20)
Interfund Services Provided and Used (pg. 1.5-20)
Interfund Transfers (pg. 1.5-21)
Interfund Loans (pg. 1.5-22)
Interfund Reimbursements (pg. 1.5-23)
Other Accounting Matters (pg. 1.5-24)
Acquiring and Disposing of Capital Assets (pg. 1.5-24)
Inventories and Prepayments (pg. 1.5-25)
Warrants (pg. 1.5-27)
Year-End Financial Statements (pg. 1.5-27)
Statement of Revenues, Expenditures, and Changes in Fund Balance (pg. 1.5-27)
Balance Sheet (pg. 1.5-28)
Classifications of Fund Balance in the Balance Sheet (pg. 1.5-29)
Effect of Year-End Encumbrances on Fund Balance Classification (pg. 1.5-31)
Comprehensive Problem on the General Fund (pg. 1.5-33)
The Problem (pg. 1.5-33)
The Solution to the Problem (pg. 1.5-36)
Closing Journal Entries (pg. 1.5-43)
Questions  (pg. 1.5-44)
Multiple Choice  (pg. 1.5-44)
Exercises  (pg. 1.5-46)
 Problems (pg. 1.5-49)
Continuing Problem  (pg. 1.5-52)
 Solutions to Chapter 5 In-Chapter Review Questions (pg. 1.5-53)
Chapter 6: Capital Projects Funds, Debt Service Funds, and Permanent Funds (pg. 1.6-1)
Measurement Focus and Basis of Accounting (pg. 1.6-3)
Capital Projects Funds (pg. 1.6-4)
Overview (pg. 1.6-4)
Capital Budgets (pg. 1.6-4)
Summary of Fund Activities (pg. 1.6-5)
Control of Fund Activities (pg. 1.6-5)
Accounting for Fund Activities (pg. 1.6-5)
Financial Statements Illustration (pg. 1.6-9)
Completing the Project: The Following Year (pg. 1.6-10)
Issuance of Bonds at a Premium or Discount (pg. 1.6-12)
Issuance of Bonds between Interest Payment Dates (pg. 1.6-13)
Arbitrage (pg. 1.6-13)
Debt Service Funds (pg. 1.6-15)
Overview (pg. 1.6-15)
Types of Government Debt (pg. 1.6-16)
Summary of Fund Activities (pg. 1.6-18)
Control of Fund Activities (pg. 1.6-18)
Accounting for Fund Activities (pg. 1.6-18)
Financial Statements Illustration (pg. 1.6-22)
Leased Assets (pg. 1.6-25)
Permanent Funds (pg. 1.6-27)
Control of Fund Activities (pg. 1.6-27)
Accounting for Fund Activities (pg. 1.6-27)
Concluding Comment (pg. 1.6-29)
Questions  (pg. 1.6-30)
 Multiple Choice (pg. 1.6-31)
 Exercises (pg. 1.6-33)
 Problems (pg. 1.6-35)
Continuing Problem  (pg. 1.6-40)
Chapter 6 Case Study—Having Faith in “Full Faith and Credit” Debt  (pg. 1.6-40)
 Solutions to Chapter 6 In-Chapter Review Questions  (pg. 1.6-41)
Chapter 7: Proprietary Type Funds—Enterprise and Internal Service Funds (pg. 1.7-1)
Proprietary Funds Are Goveranments’ Business-Type Activities (pg. 1.7-3)
Overview (pg. 1.7-3)
Measurement Focus and Basis of Accounting of Proprietary Funds (pg. 1.7-3)
What Determines Whether a Proprietary Fund Is an Enterprise Fund or an Internal Service Fund? (pg. 1.7-4)
Control of Proprietary Fund Activities (pg. 1.7-4)
GAAP for Proprietary Funds (pg. 1.7-4)
Required Financial Statements (pg. 1.7-4)
Specific Aspects of Internal Service Funds (pg. 1.7-6)
Overview (pg. 1.7-6)
Control of Internal Service Fund Activities (pg. 1.7-7)
Accounting for Internal Service Fund Activities (pg. 1.7-7)
Reporting Internal Service Funds—Financial Statements Illustration (pg. 1.7-10)
Reporting Internal Service Funds in Combined Financial Statements (pg. 1.7-12)
Specific Aspects of Enterprise Funds (pg. 1.7-15)
Control of Enterprise Fund Activities (pg. 1.7-15)
Accounting for Enterprise Fund Activities (pg. 1.7-15)
Financial Statements Illustration (pg. 1.7-19)
Enterprise Fund Use of Special Assessments (pg. 1.7-21)
GASB GAAP Compared to FASB GAAP (pg. 1.7-26)
Why Should GAAP Be Different? (pg. 1.7-26)
Reporting Capital Assets and Their Use (pg. 1.7-27)
Accounting for Leases (pg. 1.7-27)
Capital Asset Impairment (pg. 1.7-29)
Pensions and Other Postemployment Benefits (pg. 1.7-29)
Including Fiduciary Activities (pg. 1.7-30)
Reporting Changes in Net Position versus Comprehensive Income (pg. 1.7-30)
Concluding Comments (pg. 1.7-31)
 Questions (pg. 1.7-31)
Multiple Choice  (pg. 1.7-32)
Exercises  (pg. 1.7-34)
 Problems (pg. 1.7-37)
 Solutions to Chapter 7 In-Chapter Review Questions (pg. 1.7-41)
Chapter 8: Fiduciary Funds (pg. 1.8-1)
Overview of Employer Government Pension and OPEB Accounting (pg. 1.8-3)
Defined Benefit and Defined Contribution Plans (pg. 1.8-3)
Pension and OPEB Plans (pg. 1.8-4)
Structure of Plans (pg. 1.8-5)
The Role of Actuaries (pg. 1.8-5)
External and Internal Defined Benefit Plans (pg. 1.8-6)
Computing the Pension and OPEB Liability for Defined Benefit Plans (pg. 1.8-6)
Computing Pension and OPEB Expense and Related Deferrals (pg. 1.8-9)
Computing the Employer Pension and OPEB Liability for Defined Contributions (pg. 1.8-12)
Determining the Pension and OPEB Contribution (pg. 1.8-13)
Pension and OPEB Note Disclosures (pg. 1.8-13)
Pension Trust Funds (pg. 1.8-14)
Closing Entry (pg. 1.8-17)
Financial Statements Illustration (pg. 1.8-18)
Financial Reporting for Defined Contribution Plans (pg. 1.8-18)
Investment Trust Funds (pg. 1.8-23)
Fund Overview (pg. 1.8-23)
Summary of Investment Trust Fund Activities (pg. 1.8-24)
Control of Fund Activities (pg. 1.8-24)
Accounting for Investment Trust Fund Activities (pg. 1.8-24)
Financial Statements Illustration (pg. 1.8-26)
Private-Purpose Trust Funds (pg. 1.8-28)
Fund Overview (pg. 1.8-28)
Summary of Private-Purpose Trust Fund Activities (pg. 1.8-29)
Accounting for Private-Purpose Trust Fund Activities (pg. 1.8-29)
Financial Statements Illustration (pg. 1.8-30)
Custodial Funds (pg. 1.8-32)
Fund Overview (pg. 1.8-32)
Accounting for Custodial Fund Activities (pg. 1.8-33)
Financial Statements Illustration (pg. 1.8-35)
 Questions (pg. 1.8-37)
 Multiple Choice (pg. 1.8-37)
 Exercises (pg. 1.8-39)
 Problems (pg. 1.8-41)
Solutions to Chapter 8 In-Chapter Review Questions  (pg. 1.8-44)
Chapter 9: Reporting Principles and Preparation of Fund Financial Statements (pg. 1.9-1)
Overview Of Financial Reporting (pg. 1.9-3)
Content of the CAFR—an Overview (pg. 1.9-5)
Minimum External Financial Reporting Requirements (pg. 1.9-7)
The Financial Reporting Entity (pg. 1.9-8)
Defining the Financial Reporting Entity (pg. 1.9-8)
Reporting Component Units in the Reporting Entity’s Financial Statements (pg. 1.9-11)
Related Organizations, Joint Ventures, Jointly Governed Organizations (pg. 1.9-13)
Preparing Management’s Discussion and Analysis (pg. 1.9-14)
Preparing Fund Financial Statements (pg. 1.9-16)
General Comments (pg. 1.9-16)
Fund Financial Statements—Governmental Funds (pg. 1.9-18)
Fund Financial Statements—Proprietary Funds (pg. 1.9-23)
Fund Financial Statements—Fiduciary Funds (pg. 1.9-24)
Preparing Notes to the Financial Statements (pg. 1.9-25)
Significant Accounting Policies (pg. 1.9-25)
Stewardship, Compliance, and Accountability (pg. 1.9-26)
Deposits and Investments (pg. 1.9-26)
Capital Assets and Long-Term Debt (pg. 1.9-27)
Interfund Transfers and Balances (pg. 1.9-28)
Pensions and Other Postemployment Benefits (OPEB) (pg. 1.9-29)
Preparing Required Supplementary Information (pg. 1.9-30)
Budgetary Comparison Schedules (pg. 1.9-30)
Pension and Other Employee Benefit Information (pg. 1.9-32)
Infrastructure Asset Information (pg. 1.9-33)
Preparing the Statistical Section (pg. 1.9-34)
 Questions (pg. 1.9-37)
 Multiple Choice (pg. 1.9-37)
Exercises  (pg. 1.9-40)
 Problems (pg. 1.9-43)
Continuing Problem  (pg. 1.9-44)
Chapter 9 Case Studies  (pg. 1.9-44)
Solutions to Chapter 9 In-Chapter Review Questions  (pg. 1.9-46)
Chapter 10: Government-Wide Financial Statements (pg. 1.10-1)
Fund Financial Statements are the Starting Point for Government-Wide Statements (pg. 1.10-3)
Focus and Format of Government-Wide Statements (pg. 1.10-3)
The Government-Wide Statement of Net Position (pg. 1.10-4)
The Government-Wide Statement of Activities (pg. 1.10-8)
Interfund and Internal Service Fund Balances and Activity (pg. 1.10-12)
Interfund Receivables and Payables (pg. 1.10-12)
Preparing Government-Wide Financial Statements—Overview (pg. 1.10-14)
Process for Preparing Government-Wide Statements (pg. 1.10-14)
Discussion of Adjustments for Government-Wide Statements (pg. 1.10-15)
Creating Government-Wide Financial Statements from Fund Financial Data: Comprehensive Illustration (pg. 1.10-20)
Opening Balances, Transactions, and Events (pg. 1.10-20)
Journal Entries to Record Transactions in Funds (pg. 1.10-21)
Preclosing Trial Balances and Fund Financial Statements (pg. 1.10-23)
Adjustments for Preparing Government-Wide Statements (pg. 1.10-24)
Preparing Government-Wide Financial Statements and Reconciliations (pg. 1.10-27)
Capital Assets, Including Infrastructure Assets (pg. 1.10-31)
Reporting on Infrastructure Assets (pg. 1.10-32)
Capital Asset Accounting (pg. 1.10-33)
 Questions (pg. 1.10-35)
 Multiple Choice (pg. 1.10-35)
Exercises  (pg. 1.10-38)
 Problems (pg. 1.10-41)
Continuing Problem  (pg. 1.10-44)
Solutions to Chapter 10 In-Chapter Review Questions  (pg. 1.10-44)
Chapter 11: Analysis of Financial Statements and Financial Condition (pg. 1.11-1)
Financial Reporting: A Financial Analysis Perspective (pg. 1.11-3)
Statement of Net Position (pg. 1.11-3)
Statement of Revenues, Expenditures/Expenses, and Changes in Fund Balance/Net Position (pg. 1.11-4)
Notes to Statements, Required Supplementary Information, MD&A, and Statistical Data (pg. 1.11-4)
An Approach to Financial Statement and Financial Condition Analysis (pg. 1.11-5)
Converting Data to More Useful Formats (pg. 1.11-5)
Time-Series Analysis (pg. 1.11-6)
Comparative Analysis (pg. 1.11-6)
Analyzing Governmental Financial Statements (pg. 1.11-7)
Liquidity Indicators (pg. 1.11-8)
Asset Turnover or Efficiency Indicators (pg. 1.11-11)
Budget Solvency and Operating Results Indicators (pg. 1.11-12)
Debt Burden and Employee Benefit Obligation Indicators (pg. 1.11-16)
Governmental Financial Condition Assessment (pg. 1.11-24)
Economic and Demographic Environment (pg. 1.11-25)
Other Factors Affecting Financial Condition Assessment (pg. 1.11-27)
Questions  (pg. 1.11-28)
Multiple Choice  (pg. 1.11-28)
 Exercises (pg. 1.11-29)
 Problems (pg. 1.11-33)
 Solutions to Chapter 11 In-Chapter Review Questions (pg. 1.11-37)
Chapter 12: Federal Government Accounting and Reporting (pg. 1.12-1)
Federal Government Accounting And Reporting Overview (pg. 1.12-3)
The Accounting and Financial Reporting Structure (pg. 1.12-3)
The Budget Process (pg. 1.12-4)
Consolidated U.S. Government Financial Statements (pg. 1.12-6)
GAAP, Basis of Accounting, and Fund Structure (pg. 1.12-6)
Financial Statements—Year Ended September 30, 2016 (pg. 1.12-8)
The Federal Accounting and Financial Reporting Model (pg. 1.12-12)
The Budgetary Accounting Track (pg. 1.12-13)
The Proprietary Accounting Track (pg. 1.12-15)
Accounting Standards (pg. 1.12-15)
Recording Transactions and Events (pg. 1.12-17)
1. Recording the Authority to Spend (pg. 1.12-18)
2. Accounting for Acquisition and Use of Materials (pg. 1.12-18)
3. Accounting for Salaries Paid and Accrued (pg. 1.12-20)
4. Accounting for Other Types of Expenses (pg. 1.12-21)
5. Year-End Adjusting Entries (pg. 1.12-22)
6. Trial Balance and Closing Entries (pg. 1.12-23)
Federal Agency Financial Reporting (pg. 1.12-25)
Questions  (pg. 1.12-30)
 Multiple Choice (pg. 1.12-31)
Exercises  (pg. 1.12-32)
Problems  (pg. 1.12-34)
Solutions to Chapter 12 In-Chapter Review Questions  (pg. 1.12-36)
Chapter 13: Accounting for Nonprofit Organizations (pg. 1.13-1)
Characteristics of Not-For-Profit Organizations (pg. 1.13-3)
Source of Accounting and Financial Reporting Guidance for Nonprofits (pg. 1.13-4)
Financial Reporting for Nonprofits (pg. 1.13-4)
Objectives of Nonprofit Financial Reporting (pg. 1.13-4)
Reporting on Restrictions and Classes of Net Assets (pg. 1.13-5)
Statement of Financial Position or Balance Sheet (pg. 1.13-6)
Statement of Activities (pg. 1.13-9)
Statement of Cash Flows (pg. 1.13-11)
Reporting Expenses by Nature and Function—Statement of Functional Expenses (pg. 1.13-14)
Contributions Other Than Services and Collections (pg. 1.13-14)
General Rule (pg. 1.13-14)
Unrestricted Contributions (pg. 1.13-14)
Contributions with Donor-Imposed Restrictions (pg. 1.13-16)
Accounting for Reclassifications (pg. 1.13-17)
Unconditional Promises to Give (Pledges) (pg. 1.13-19)
Conditional Promises to Give (pg. 1.13-20)
Contributed Services and Collection Items (pg. 1.13-21)
Contributed Services (pg. 1.13-21)
Contributions to Collections (pg. 1.13-22)
Investments and Split-Interest Agreements (pg. 1.13-23)
Fair Value Reporting and Investment Gains and Losses (pg. 1.13-23)
Investment Disclosures (pg. 1.13-25)
Investment Income (pg. 1.13-25)
Split-Interest Agreements (pg. 1.13-25)
Reporting Exchange Revenues and Other Matters (pg. 1.13-26)
Exchange Transactions and Nonprofits (pg. 1.13-26)
Subscription and Membership Income (pg. 1.13-28)
Depreciation Expense (pg. 1.13-28)
Fundraising Expenses (pg. 1.13-29)
Providing Information about Nonprofit Liquidity (pg. 1.13-30)
Fund Accounting in Nonprofits (pg. 1.13-31)
Types of Funds (pg. 1.13-31)
Interfund Transfers (pg. 1.13-32)
Interfund Receivables and Payables (pg. 1.13-33)
Illustration Using Funds (pg. 1.13-33)
Appendix: 13A: Nonprofit Colleges and Universities (pg. 1.13-39)
Nonprofit Colleges and Universities (pg. 1.13-40)
Financial Statements of Not-for-Profit Colleges and Universities (pg. 1.13-40)
Notes to the Financial Statements (pg. 1.13-41)
Questions (pg. 1.13-44)
Multiple Choice (pg. 1.13-45)
Exercises (pg. 1.13-47)
Problems (pg. 1.13-49)
Solutions to Chapter 13 In-Chapter Review Questions (pg. 1.13-55)
Advanced Accounting, 4e (pg. 2.642)
Chapter 14: Partnership Accounting and Reporting (pg. 2.642)
Introduction (pg. 2.643)
 Characteristics of a Partnership (pg. 2.643)
Relations of Partners to Others (pg. 2.644)
Relations Among Partners (pg. 2.644)
Partners’ Property Rights (pg. 2.645)
Contractual Provisions: The Partnership Agreement (pg. 2.645)
Limited Partnerships (pg. 2.645)
Comparison of Corporate and Partnership Forms of Organization (pg. 2.646)
Partnership Reporting Issues (pg. 2.647)
 Formation of the Partnership (pg. 2.649)
Bonus and Goodwill Approaches (pg. 2.649)
Review 1 • Formation of a Partnership (pg. 2.650)
 Allocation of Partnership Income to PartnerS (pg. 2.650)
Salaries to Partners (pg. 2.651)
Bonus to Partners (pg. 2.651)
Interest on Partners’ Capital Accounts (pg. 2.652)
Percentage Allocation by Income-Sharing Ratio (pg. 2.652)
Comprehensive Illustration of Partnership Income Allocation (pg. 2.652)
Schedule of Changes in Capital Accounts (pg. 2.653)
Review 2 • Income Allocation (pg. 2.654)
 Admission of a New Partner (pg. 2.654)
Admission by Purchase of an Existing Partnership Interest (pg. 2.654)
Admission by Investment of New Capital (pg. 2.656)
Effects of Bonus and Goodwill Methods on Partners’ Capital (pg. 2.659)
Evaluation of Bonus and Goodwill Methods (pg. 2.659)
 Retirement of a Partner (pg. 2.660)
Purchase with Personal Assets (pg. 2.660)
Purchase with Partnership Assets (pg. 2.660)
Review 3 • Retirement of a Partner and Admission of a New Partner (pg. 2.663)
 Partnership Liquidations (pg. 2.663)
Priorities for Payments (pg. 2.663)
Rights of Creditors (pg. 2.664)
Simple Versus Installment Liquidations (pg. 2.665)
Simple Liquidations (pg. 2.665)
Installment Liquidations (pg. 2.667)
Review 4 • Termination of the Partnership (pg. 2.677)
Review of Key Concepts (pg. 2.677)
Multiple Choice Questions (pg. 2.678)
Exercises (pg. 2.680)
Problems (pg. 2.685)
Review Solutions (pg. 2.693)
Chapter 16: The SEC and Financial Reporting (pg. 2.744)
 Establishment of the SEC and Key Securities Legislation (pg. 2.746)
Establishment of the SEC (pg. 2.746)
Securities Legislation and the SEC (pg. 2.746)
Definition of a Security (pg. 2.748)
 Organization and Structure of the SEC (pg. 2.748)
SEC Pronouncements on Accounting and Auditing (pg. 2.750)
Review 1 • Mission and Organization of the SEC (pg. 2.750)
 Registration of New Securities (pg. 2.750)
 Periodic Reporting Requirements (pg. 2.752)
EDGAR (pg. 2.752)
The Annual Report: Form 10-K (pg. 2.752)
Regulation S-X (pg. 2.757)
The Quarterly Report: Form 10-Q (pg. 2.759)
Special Reports: Form 8-K (pg. 2.760)
Review 2 • Registration and Periodic Reporting Requirements (pg. 2.762)
 Corporate Accountability and Governance (pg. 2.762)
Audit Committees (pg. 2.763)
Antifraud Provisions and Insider Trading (pg. 2.763)
Proxy Statements (pg. 2.764)
The Dodd-Frank Act (pg. 2.764)
 The SEC and Accounting Standards (pg. 2.765)
Review 3 • Corporate Accountability and Governance, SEC Intervention in Standard-Setting (pg. 2.766)
Review of Key Concepts (pg. 2.766)
Multiple Choice Questions (pg. 2.767)
Exercises (pg. 2.768)
Problems (pg. 2.773)
Review Solutions (pg. 2.776)
Terry Patton

Terry Patton

Robert Madera Distinguished Professor of Accounting and Chair of the Accounting, Management Information Systems, and Legal Studies Department of the Dillard College of Business Administration at Midwestern State University in Wichita Falls, Texas

He received his bachelor’s degree from Midwestern State University, a master’s degree from the University of North Texas, and a PhD from Texas Tech University. He teaches governmental and nonprofit accounting, as well as auditing. 

Dr. Patton began his career in public accounting, where he audited local governments. Later, he served as a project manager and as the research manager for the Governmental Accounting Standards Board. He has coauthored a governmental accounting book for practitioners, Guide to Governmental Financial Reporting Model: Implementing GASBS No. 34, and another governmental accounting textbook published by Pearson Prentice Hall.

He has published articles in the Accounting Review, Accounting Horizons, the Journal of Accounting and Public Policy, and the Journal of Public Budgeting, Accounting, and Financial Management, among others. Dr. Patton regularly speaks to accounting professionals on state and local governmental accounting topics.

Dr. Patton has served as a board member on numerous nonprofit boards of directors. Currently, he serves on the board of the BBB Serving North Central Texas. He is also a board member and chair of United Regional Healthcare System and the Wichita Falls Alliance for Arts and Culture. 


Suesan Patton

Suesan Patton

National Director of Quality Initiatives for UHY LLP. Mrs. Patton also currently serves as a member of the Association of Government Accountants Financial Management Standards Board.

Most of Mrs. Patton’s career has been spent in standards-setting, beginning as a Manager with the American Institute of CPAs Accounting Standards Division and continuing with a 15-year stint with the Governmental Accounting Standards Board as a Senior Project Manager. She received a Bachelor of Arts degree in English Literature with a Concentration in Accounting from the University of Cincinnati. For several years, she was the principal author of two PPC Thomson practitioner guides on governmental accounting and financial reporting—Preparing Governmental Financial Statements under GASBS No. 34 and Governmental Financial Statement Illustrations and Trends.


Martin Ives

Martin Ives

Martin Ives, MBA, CPA (inactive), CGFM (retired), CIA , served for 16 years as Distinguished Adjunct Professor of Public Administration at New York University’s Wagner Graduate School of Public Service.

Before entering the academic world, Mr. Ives was Vice Chair and Director of Research of the Governmental Accounting Standards Board, First Deputy Comptroller of the City of New York, Deputy Comptroller of the State of New York, and a member of the Federal Accounting Standards Advisory Board.

In addition to this text, Mr. Ives is the author of the textbook Assessing Municipal Financial Condition, coauthor of the textbook Government Performance Audit in Action, and coauthor of Program Control and Audit and Financial Condition Analysis and Management. He has also written chapters for books on auditing and municipal finance, has authored about 30 articles for the Journal of Government Financial Management, the Journal of Accountancy, the Internal Auditor, the Municipal Finance Journal, and other professional journals, and has spoken to numerous professional and civic organizations.

Mr. Ives was founding president of the Albany chapter of the Institute of Internal Auditors, president of the Capital District Chapter of the American Society for Public Administration, and a member of the founding board of the Association of Government Accountants’ Certified Government Financial Manager program. He has received many honors and awards, including the Public Service Award (Fund for the City of New York); the Governor Charles Evans Hughes Award (Capital District Chapter of the American Society for Public Administration); and the S. Kenneth Howard Award (Association for Budgeting and Financial Management). He has also been voted Adjunct of the Year by the students at NYU’s Wagner Graduate School.


Susan S. Hamlen

Susan S. Hamlen

Susan S. Hamlen is the former Department Chair and Associate Professor of Accounting at the University at Buffalo School of Management. She received her PhD and MS at Purdue University and her BS at the University of California, Berkeley.

Professor Hamlen is the author of Advanced Accounting 4e and previously co-authored 12 editions of advanced accounting texts. She has taught courses in advanced accounting for over twenty-four years and courses in financial accounting for over nine years, at the undegraduate and graduate levels.

Professor Hamlen's research interests are in the area of reporting for financial derivatives and international reporting. She has publications in Journal of Derivatives Accounting, Theoretical Economics Letters, and in other accounting and analysis journals.

Professor Hamlen is an active member of the American Accounting Association and other accounting, analysis, and business organizations.


Accounting for Governmental and Nonprofit Organizations (Patton, Patton, Ives)
Errata
Last Updated: Mar 4 2020

Identified corrections to the textbook.

CH 16 - Auditing Governmental and Nonprofit Organizations
Last Updated: Jun 15 2020

PDF of supplemental Chapter 16: Auditing Governmental and Nonprofit Organizations

Advanced Accounting, 4e (Hamlen)
Errata - Textbook
Last Updated: Mar 31 2020

Corrections that were made to the text after the first printing. 

Excel Templates - Student
Last Updated: Mar 31 2020

Excel spreadsheets for select assignments are provided on the book’s website. These spreadsheets will save time in data entry and allow students to dedicate additional time to learning the material. The Excel spreadsheets are identified by the Excel icon.

Chapters 1-6 and 10 available. Others coming soon!

Practice Quizzes
Last Updated: Mar 31 2020
Practice Quiz Solutions
Last Updated: Mar 31 2020
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