Lee College Financial Statements and Analysis

Lee College Financial Statements and compendium ACC380 ? Lee College Financial Statements and Analysis Lee College is a hidden not-for-profit organization. Organizations such as this argon not own or controlled by a authorities and no undivided or group of individuals hold a legally enforceable residual claim to the web assets of the organization. Since the activities of private not-for-profit organizations atomic number 18 normally financed through voluntary contri aloneions, their fiscal statements are primarily think for the use of donors and potential donors. According to its mo acquitary statements, Lee College appears to be efficiently utilizing its resources to fulfill its mission, rather than for investment firm-raising and administration. Lee Colleges financial statements are reflecting a course expense ratio of 79 percent, which is well above the go bad Business Bureaus recommended minimum ratio of 60 percent. Private not-for-profits report both curre nt and long- precondition assets and liabilities and measure revenues and expenses using the accrual fanny of accounting (Copley, 2011, p. 302). Since these organizations do not report by fund, either excess of assets over liabilities is referred to as make assets rather than fund balance.

The Financial Accounting Standards mesa (FASB) has identified three classes of simoleons assets which are permanently certified, temporarily restricted, and unrestricted. Permanently restricted fire assets include resources such as artwork or place down which must be maintained in a certain way. Permanent endowments would similarly be an example of a permanently r! estricted web asset. Typically, these assets are to be restricted as long as the organization has custody. Temporarily restricted net assets include net assets net assets restricted by donors, but are not permanently restricted net assets (Copley, 2011, p. G18). These assets whitethorn be restricted for purpose, plant acquisition, time, or even term endowment. Unrestricted net assets include all...If you want to get a full essay, army it on our website: OrderCustomPaper.com

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