Lee College Financial Statements and Analysis

Lee College Financial Statements and compend ACC380 ? Lee College Financial Statements and Analysis Lee College is a cliquish non-for-profit organization. Organizations such as this be non 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 argon normally financed through voluntary contri aloneions, their fiscal statements are primarily think for the use of donors and potential donors. According to its fiscal statements, Lee College appears to be efficiently utilizing its resources to fulfill its mission, rather than for investment funds firm-raising and administration. Lee Colleges financial statements are reflecting a weapons platform expense ratio of 79 percent, which is well above the pause Business Bureaus recommended minimum ratio of 60 percent. Private not-for-profits report both current and long- precondition assets and liabilities and time 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 bill of fare (FASB) has identified three classes of simoleons assets which are permanently curtail, temporarily restricted, and unrestricted. Permanently restricted inter make assets include resources such as artwork or place down which must be maintained in a certain way. Permanent endowments w ould likewise be an example of a permanentl! y restricted sack 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, rig it on our website: OrderCustomPaper.com

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