Lee College Financial Statements and Analysis

Lee College Financial Statements and synopsis ACC380 ? Lee College Financial Statements and Analysis Lee College is a buck private non-for-profit organization. Organizations such as this be not own or controlled by a regime 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 be 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 enthronisation firm-raising and administration. Lee Colleges financial statements are reflecting a design expense ratio of 79 percent, which is well above the bring out Business Bureaus recommended minimum ratio of 60 percent. Private not-for-profits report both current and long- prec ondition assets and liabilities and stripe 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 carte du jour (FASB) has identified three classes of simoleons assets which are permanently restricted, temporarily restricted, and unrestricted. Permanently restricted moolah assets include resources such as artwork or place down which must be maintained in a certain way. Permanent endowments would als o be an example of a permanently restricted ! fire asset. Typically, these assets are to be restricted as long as the organization has custody. Temporarily restricted dinero 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, arrange it on our website: OrderCustomPaper.com

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