Well developed answer:
In your own words describe the following key terms:
A. Nonprofit Organization, Proprietary Organization, General Ledger, and Subsidiary Journals.
Answer A :
1. Non profit organization : These are the organizations which work for the betterment of the society and individuals other than generating the profits. The income or the funds required to these organizations or part of it are not distributed among the members, directors etc. These includes, churches, charitable trust, political organization, labor unions etc.
2. Proprietary organization : These are the privately held organizations which are either limited or unlimited. They are not allowed raise the funds while not permitted to have more than 50 shareholders in such organization. Proprietary organizations comes under two categories that are Limited by Shares and Unlimited with Share Capital.
3. General Ledger : These are the records maintained within the organization which are used later to prepare the financial statements. Financial transactions are recorded with the debit and credit accounts while validating by the trial balance. They also included the revenue, expanses, assets, liabilities records over the life of the organization.
4. Subsidiary Journals : Subsidiary journals are the used to record the each transactions which are not possible in general ledger. These journal includes the Accounts receivable and payable while recording the fixed assets of the organization. Whereas the sales, purchase journals are maintained to record the transactions.
Well developed answer: In your own words describe the following key terms: A. Nonprofit Organization, Proprietary...
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