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Karen White is struggling to pass her introductory accounting course. Karen is intelligent but she likes to party. Studying is a low priority for Karen. When one of her friends tells her that she is going to have trouble in business if she doesn't learn accounting, Karen responds that she doesn't plan to go into business. She says that she is arts oriented and plans someday to be a director of a museum. She is in the school of business to develop her social skills, not her quantitative skills. Karen says she won't have to worry about accounting, since museums are not intended to make a profit.Required:
a. Write a brief memo explaining whether you agree or disagree with Karen's position regarding accounting and not for profit organizations. b. Distinguish between financial accounting and managerial accounting. c. Identify some of the stakeholders of not for profit institutions that would expect to receive financial accounting reports. d. Identify some of the stakeholders of not for profit institutions that would expect to receive managerial accounting reports.
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