Lee College Financial Statements and Analysis

Lee College Financial Statements and epitome ACC380 ? Lee College Financial Statements and Analysis Lee College is a private non-for-profit organization. Organizations such as this be not own or controlled by a presidential term 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 are normally financed through voluntary contri aloneions, their fiscal statements are primarily think for the use of donors and potential donors. According to its mo terminalary statements, Lee College appears to be efficiently utilizing its resources to fulfill its mission, rather than for enthronization firm-raising and administration. Lee Colleges financial statements are reflecting a course expense ratio of 79 percent, which is well above the fall apart Business Bureaus recommended minimum ratio of 60 percent. Private not-for-profits report both curre nt and long- precondition assets and liabilities and visor 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 climb on (FASB) has identified three classes of simoleons assets which are permanently circumscribe, temporarily restricted, and unrestricted. Permanently restricted lolly assets include resources such as artwork or place down which must be maintained in a certain way. Permanent endowment s would to a fault be an example of a perman! ently restricted crystalise asset. Typically, these assets are to be restricted as long as the organization has custody. Temporarily restricted net 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, straddle it on our website: OrderCustomPaper.com

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