Question: Explain why not for profit organizations don t have an owners equity section
Explain why not-for-profit organizations don't have an owners' equity section on their balance sheets. What do they have instead? What does that section of the balance sheet represent? How should it be interpreted?
Relevant QuestionsWhat is a limited partnership? What is the difference between limited partners and general partners? Why must a limited partnership have at least one general partner?What is retained earnings? What transactions and economic events have an effect on retained earnings? Why is retained earnings considered an indirect investment in an entity? A business owner shows you his balance sheet and points out that the total amount of equity is $4,567,000. He says that is the price a buyer should pay for the business. Do you agree? Explain.What does par value mean? How does the entry to record the issuance of common shares differ depending on whether the shares have a par value? Provide an example.You are provided with the following information from the equity section of Aurora Ltd.'s balance sheet on December 31, 2017:Preferred stock-Authorized, 200,000 shares; outstanding 60,000 shares... $1,500,000 Common ...
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