Explain how the U.S. federal government’s financial challenges shape the financial future of state governments, local governments, non-profits, and other public organizations. Identify the fundamental equation of accounting.

The Influence of Government Financials

Explain how the U.S. federal government’s financial challenges shape the financial future of state governments, local governments, non-profits, and other public organizations.

Ensure to include in your explanation the advantages and disadvantages of various revenue sources as well as the roles of efficiency, equity, and fairness on financing governments, non-profits, and other public organizations.

Identify the fundamental equation of accounting.

1. Identify the basic financial statements – balance sheet, income statement, and cash flow statement – for public organizations.
2. Know what information each statement is designed to convey about an organization.
3. Contrast the basic financial statements for non-profits to those same statements for governments and for-profit organizations.
4. Recognize the key elements of the financial statements – assets, liabilities, revenues, and expenses.