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Stels [109]
3 years ago
6

Describe the main differences for revenue spending between ""for profit"" companies and ""not for profit"" companies. Describe h

ow 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"".
Business
1 answer:
LenKa [72]3 years ago
8 0

Answer with Explanation:

<h2><u>Requirement 1:</u> </h2>

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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Nike, Inc.reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant a
vodka [1.7K]

Answer:

Explanation:

The total assets comprises of current assets, fixed assets ,and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The preparation of the classified balance sheet for Nike, Inc on  May 31, 2022 is presented in the spreadsheet. Kindly find the attachment below:

3 0
3 years ago
A face-saving technique in which all parties involved in an embarrassing situation ignore it and continue their
Marina CMI [18]
C) Studied nonobservance   <span>

A face-saving technique in which all parties involved in an embarrassing situation ignore it and continue their conversation or interaction as though the embarrassing situation never happened is referred to as studied nonobservance. In this case, studied nonobservance is the act of diminishing or undermining a set of faulty, distressing or embarrassing behaviors or actions. Includes the flaws, lack of awareness and defects are ceased to keep the person or individual “on the move” as not to ruin the ego or the self. </span>  



7 0
3 years ago
Katie can mitigate the problem without alerting the new owners or let them know about this new disclosure and possibly delay or
slava [35]

Answer:

Ethical

Explanation:

The ethical dilemma means the uncertainties form that developed due to violation of the moral standard that would be held in our life

It would be considered right when she tells to the client regrading the mice problem but she is discouraged as she know that if she do this than she would mess up with the sales that decrease the salary

So this given situation represent an ethical dilemma

7 0
3 years ago
At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours wil
Andrei [34K]

Answer:

The amount of overhead applied during the year is $2,400,000

Explanation:

In determining overheads amounts to be included in product costing, a company uses Budgeted overheads.

Budgeted overheads are used rather than actual overheads because of the delays that are made to obtain Actual data for Actual overhead amounts which will delay product costing.

Therefore Using machine hours as a base, the amount of overhead applied during the year is $2,400,000

8 0
3 years ago
If you receive a ticket to a concert at no charge, what, if anything, is your opportunity cost of attending the concert?
spin [16.1K]

Answer:

The opportunity cost of attending the concert=$0

Explanation:

An opportunity cost is the total monetary loss that one has when they choose a given option. It can also be defined as the gain that one misses when the individual or business chooses one alternative over the other. Opportunity costs are not heavily considered in financial reports, however individuals or businesses who have the opportunity to choose from many alternatives at the same time need to consider the opportunity cost to make a more valuable decision in the long-run. Opportunity costs helps individuals and businesses to make better decisions on the options they have at their disposal.

The opportunity cost can be Determined using the following expression;

OC=FO-CO

where;

OC=opportunity cost

FO=return on best forgone option

CO=return on chosen option

Since in our case, the forgone option was not attending the concert, the cost would be=0

Also since the chosen option was the ticket at no charge, the cost would be=0

In our case;

OC=unknown

FO=0

CO=0

replacing;

OC=0-0=0

The opportunity cost of attending the concert=$0

7 0
2 years ago
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