BUS4114 is Capella University's course on accounting for governments and nonprofit organizations, two areas with their own standard-setters and statements.
The catalog says students build an understanding of the accounting methodology and reporting requirements of the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) for governments and nonprofits.
Students also examine A-133 reporting requirements and gain the knowledge and skills needed to prepare Form 990. It is a 3-credit course with BUS4062 as the prerequisite.
The difficulty is that much of what you learned in intermediate accounting changes. Governments use funds and two bases of accounting at once, and nonprofits classify resources by donor restrictions.
Course at a Glance
| Item | Details |
|---|---|
| University | Capella University |
| Course code | BUS4114 |
| Level | Undergraduate |
| Credits | 3 |
| Prerequisite | BUS4062 Intermediate Financial Accounting Topics and Trends |
| Typical work | Journal entries and statements, standards research, Form 990 and audit questions (check your course) |
What BUS4114 Covers
| Area | Key ideas |
|---|---|
| State and local government (GASB) | Fund accounting, governmental, proprietary and fiduciary funds, fund and government-wide statements |
| Private nonprofits (FASB) | Net assets with and without donor restrictions, statement of activities, functional expenses |
| A-133 / single audit | Audit requirements for entities spending significant federal awards |
| Form 990 | The annual information return most tax-exempt organizations file with the IRS |
Key Concepts Explained
Two Bases in One Government
Governmental funds use the modified accrual basis with a current financial resources focus: revenue is recognized when measurable and available. The government-wide statements use full accrual with an economic resources focus, so capital assets and long-term debt appear there.
Example: A city buys a $2 million fire engine with cash. In the general fund it is recorded as a capital outlay expenditure of $2 million. In the government-wide statements it is a capital asset, depreciated over its useful life. Reconciling the two views is a standard exam and assignment task.
Donor Restrictions in Nonprofits
Under FASB rules, a private nonprofit reports net assets in two classes: with donor restrictions and without donor restrictions. When a restriction is met, the amount is released and reclassified.
Example: A museum receives a $50,000 gift restricted to a new exhibition. It is recorded as contribution revenue with donor restrictions. When the museum spends $50,000 on the exhibition, it reports a release from restriction, moving the amount to net assets without donor restrictions to match the expense.
A-133 and Today's Uniform Guidance
Circular A-133 set single audit requirements for non-federal entities spending federal awards. Those requirements have since been moved into the federal Uniform Guidance (2 CFR 200, Subpart F), so you may see both names in readings.
Understanding Form 990
Form 990 is a public document, so it is also a useful research source. Assignments may ask you to explain or complete parts of it. Key areas usually include:
- the organization's mission and main program accomplishments;
- revenue, expenses and the balance sheet;
- governance, management and policies;
- compensation of officers, directors and key employees.
Practicing with a real organization's published return shows how accounting figures connect to what the public sees.
Typical Assignments and How to Approach Them
| Assignment type | What it tests | How to approach it |
|---|---|---|
| Fund journal entries | Modified accrual recognition | Name the fund first, then decide the basis |
| Nonprofit statements | Net asset classes | Track each gift's restriction and release |
| Standards research | Using GASB and FASB guidance | Cite the standard and explain how it applies |
| Form 990 analysis | Reading public reporting | Link sections of the return to the statements |
Where Students Get Stuck
- Using the wrong basis. Always ask which fund or statement you are working in before recording anything.
- Confusing GASB and FASB. State and local governments follow GASB; private nonprofits follow FASB.
- Forgetting releases. Restricted gifts must be released when the restriction is met.
- Old terminology. Older texts use three net asset classes; current FASB rules use two.
Study Tips for BUS4114
- Draw a one-page map of fund types and the basis each uses.
- Download a real city's annual financial report and find the reconciliation pages.
- Look up a nonprofit's Form 990 and compare it with its audited statements.
- Keep GASB and FASB notes in separate sections to avoid mixing rules.
How We Help with BUS4114
Send the problem set or prompt, the scoring guide and feedback received. An accounting writer prepares worked model entries and statements, explains the standards behind each step, or reviews your own work. See also our accounting assignment help guide.
GradeEssays is independent of Capella University. Our work is a study aid: you complete and submit your own work under Capella's academic integrity policy. Orders are written from scratch and include free revisions within the scope of your original request, with a full refund if delivery is late.
Get Government and Nonprofit Reporting Right
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Frequently Asked Questions
Capella describes GASB and FASB accounting and reporting for governments and nonprofits, A-133 reporting requirements and preparing Form 990.
BUS4062 Intermediate Financial Accounting Topics and Trends.
The basis used in governmental funds: revenue is recognized when measurable and available to pay current obligations, and expenditures generally when the liability is incurred.
Its single audit requirements now sit in the federal Uniform Guidance (2 CFR 200, Subpart F). Courses and texts may still use the A-133 name.
Most tax-exempt organizations file a version of Form 990 with the IRS each year; smaller ones may file a shorter version.
No. We provide worked models, explanations and reviews so you can complete your own.