Ticket Revenues

Question 1

Deliverable Length: 350–500 words

Scenario

The new hires now have a better understanding of the different types of users of financial statements and source documents. This week, your manager has asked you to continue with your training by explaining financial statements. You want to see how much the new hires really understand when it comes to preparing and reviewing financials.

Using your textbook, the library, the Internet, or any other available materials, explain the different types of users of financial statements. The following questions must be answered in the report to receive full credit:

• Define the accounting equation.
• Define, explain, and give 1 example of each of these account types:
  • Assets
  • Liabilities
  • Owners’ equity
  • Revenue
  • Expenses
• Discuss how much time you think you will need to spend each week for this accounting class. Do you have any concerns in completing the homework?

Question 2

600 Word Document plus charts, completely original writing:

Given the metrics your accountant told you are evaluated in nonprofits, you asked her to educate you on how to assess the health of a nonprofit. You asked her the following:

• Find and review the financial statements of any nonprofit symphony.
• In a report of 600 words, comment specifically on the following:
  • What is the major source of the change in net assets that occurred in 2007 from the change that occurred in 2008? In your opinion, is this trend likely to continue? Why/why not?
  • If we assume that program expenses of the symphony should generally vary with ticket revenues, do they vary between 2007 and 2008? What could your answer indicate may be happening?
  • Is investment income a significant part of total sources of revenue in 2007 or 2008? Does this indicate a major concern about the reduction in the fair market value of investments between 2007 and 2009?
  • Based on your analysis above and any other analyses, comment on the future economic viability of this organization.