Comprehensive Annual Financial Report Briefing

citywide annual Financial Report Briefing ACC/548 July 30, 2012 Michael Teneyck Comprehensive Annual Financial Report Briefing This outline testament leave alone an overview of disposal activity accounting for the newly elective board members of the city of Houston. much specifically it testament furnish a comparison of government accounting versus for- get forrad pecuniary accounting, suffer a description of the City of Houston account entity, and evaluate the Management Discussion and Analysis voice deep down the Comprehensive Annual Financial Report (CAFR). This brief will reference the finding from the CAFR for the fiscal year end June 30, 2011. brass versus For- expediency Accounting There are several divergencys that exist between governmental accounting and for- improvement fiscal accounting. One of the biggest differences is the organizational direct or mission. A for-profit business main objective is to impression display a profit and focus on riches creation. This role of entitys mission is to generate a financial rejoinder on investment for its shareholder. The mission of a government is to recitation its resources to maintain or improve the well-being of its citizens by providing common go and basically breaking break even.

Profit is frowned upon; a surplus of resources may indicate poor persona services or under-utilization of resources that correlates to resources mismanagement (Granof &Wardlow, 2011). Another difference is the procedure of financial statements and budgets. A for-profit business prepares financial statem ents that give a snapshot of the business fi! nancial stability. The annual financial statements are the most significant documents of a for-profit business because they provide primary(prenominal) information used by decision makers like investors, creditors, and suppliers. The profit margin is normally the biggest indicator of the business financial health. A for-profit business uses its budget for internal purposes and as a hire to drive its desired results. A...If you want to get a unspoilt essay, order it on our website: OrderCustomPaper.com

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