Unit 2

Unit 2

Case Study

Financial Accounting Principles

and

Analysis

Linda Onque

Stop Shootin' Music Inc. is a non-profit organization that started in Newark, New Jersey. This organization uses music as an avenue to reach the troubled youth in an effort to put an end to senseless gun violence in the urban cities of New Jersey. The organization constantly preaches their message through the streets, schools, social events, news, and workshops throughout the state. Being a non-profit organization, the organization relies on fundraisers and grants from funders to support their organizational expenses and upkeep.

The President of the organization, Al-Tarik is the founder. He chose to make this an organization in an effort to save the youth that will soon be our future. He grew up in a violent environment in the city of Newark, New Jersey in the 70’s and remembers being a subject to his environment. He was directly impacted by senseless gun violence in numerous ways. Al-Tarik wanted to be the cause of someone wanting to change his or her lives for the better and aim to be a positive citizen in society.

An advantage Al-Tarik owns is being originally from the City Of Newark. His family is very popular and respected and tends to attract a lot of support from the residents, politicians, and stakeholders that assist his organization in staying functional, and being successful in their city.

Stop Shootin Music Inc. outsources their accounting to a Certified Public Accountant named Alex. Alex prepares interim financial statements on a quarterly basis and provides the details to the President and the board at each quarterly meeting. The company operates on a cash basis of accounting as advised by Alex. Alex feels like that is the best form of accounting for this organization. Stop Shootin Music, Inc. does use a worksheet in preparing the financial statements using an excel spreadsheet. The accountant chooses to use to use a worksheet because...