Is the information on the balance sheet, activity statement, and cash flow statement independent of one another or connected? Explain.
Do you think that a not-for-profit organization’s board can release the restrictions on money in a strike fund and use it for general operations? Does it matter whether we are talking about a strike fund held by a steel workers’ union to pay benefits to its members during a strike versus a fund used by a not-for-profit as a safety reserve in case its workers go on strike?
A board sets aside resources to earn investment income to support general operations. Would the resources set aside be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?
How does one decide what entities to include in the government’s BFS?
Assume you are the manager of a local hospital. You begin the year with 150 boxes of inventory, each at a cost of $1,000. Your organization had the following inventory changes during the year: You purchased 110 additional boxes in March at a cost of $1,200 each, purchased an additional 230 boxes in August at a cost of $1,400 each, and used 400 boxes during the year. Calculate the value of the ending inventory and the value of the inventory used for the year using both the FIFO and LIFO methods.