Question 1

Which of the following entities was a principal in creating the FASAB?

Accepted Answer

A) U)S.Congress. 
B) Office of Management and Budget. 
C) Governmental Accounting Standards Board. 
D) Securities and Exchange Commission. 
A) U)S.Congress. 
B) Office of Management and Budget. 
C) Governmental Accounting Standards Board. 
D) Securities and Exchange Commission. B

Question 2

As used by the GASB,interperiod equity refers to which of the following? Financial reporting should:

Accepted Answer

A) Demonstrate compliance with finance-related contractual requirements. 
B) Provide information to determine whether current-year revenues were sufficient to pay for current-year services. 
C) Demonstrate whether resources were obtained and used in accordance with the government's legally adopted budget. 
D) Provide information to assist users in assessing the government's economy,efficiency,and effectiveness. 
A) Demonstrate compliance with finance-related contractual requirements. 
B) Provide information to determine whether current-year revenues were sufficient to pay for current-year services. 
C) Demonstrate whether resources were obtained and used in accordance with the government's legally adopted budget. 
D) Provide information to assist users in assessing the government's economy,efficiency,and effectiveness. B

Question 3

Governments and not-for-profit entities may never engage in business-type activities.

Accepted Answer

A) True 
 B)False  False

Question 4

Given a specific set of data,the basis of accounting selected by or imposed on a government will least affect which of the following?

Accepted Answer

A) Determining whether or not the government has a balanced budget. 
B) Determining whether or not the government has the ability to issue debt. 
C) Determining whether or not certain economic events occurred. 
D) Determining the annual payments to a government-sponsored pension plan. 
A) Determining whether or not the government has a balanced budget. 
B) Determining whether or not the government has the ability to issue debt. 
C) Determining whether or not certain economic events occurred. 
D) Determining the annual payments to a government-sponsored pension plan.

Question 5

The purpose of the FASAB is to establish accounting standards for

Accepted Answer

A) Not-for-profit entities. 
B) Federal government. 
C) All governments. 
D) Non-federal governments. 
A) Not-for-profit entities. 
B) Federal government. 
C) All governments. 
D) Non-federal governments.

Question 6

Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:

Accepted Answer

A) Assessing the types of services provided and the need for those services. 
B) Assessing the services provided and the entity's ability to earn a profit. 
C) Making rational decisions about the allocation of resources to those organizations. 
D) Assessing how managers have managed personnel. 
A) Assessing the types of services provided and the need for those services. 
B) Assessing the services provided and the entity's ability to earn a profit. 
C) Making rational decisions about the allocation of resources to those organizations. 
D) Assessing how managers have managed personnel.

Question 7

The Federal Accounting Standards Advisory Board's standards do not apply to the federal Department of the Treasury.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following characteristics distinguishes a government or not-for-profit entity from a business?

Accepted Answer

A) There is always a direct link between revenues generated and expenditures/expenses incurred. 
B) Capital assets are used to produce revenues and save costs. 
C) Revenues are always indicative of demand for goods and services. 
D) The mission of the entity will determine the goods or services provided. 
A) There is always a direct link between revenues generated and expenditures/expenses incurred. 
B) Capital assets are used to produce revenues and save costs. 
C) Revenues are always indicative of demand for goods and services. 
D) The mission of the entity will determine the goods or services provided.

Question 9

Which of the following characteristics is unique to governments?

Accepted Answer

A) The ability to have activities financed with tax-exempt debt. 
B) The power to impose fees. 
C) The ability to issue tax-exempt debt. 
D) The ability to have activities financed by Federal grants. 
A) The ability to have activities financed with tax-exempt debt. 
B) The power to impose fees. 
C) The ability to issue tax-exempt debt. 
D) The ability to have activities financed by Federal grants.

Question 10

Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to

Accepted Answer

A) Assess financial condition. 
B) Compare actual results with the budget. 
C) Assess the ability of elected officials to effectively manage people. 
D) Evaluate efficiency and effectiveness. 
A) Assess financial condition. 
B) Compare actual results with the budget. 
C) Assess the ability of elected officials to effectively manage people. 
D) Evaluate efficiency and effectiveness.

Question 11

The most significant financial document provided by a government is the

Accepted Answer

A) Balance sheet. 
B) Operating statement. 
C) Operating budget. 
D) Cash flow statement. 
A) Balance sheet. 
B) Operating statement. 
C) Operating budget. 
D) Cash flow statement.

Question 12

A regulatory agency would use the external financial statements of a local government for which of the following purposes?

Accepted Answer

A) To ensure that the entity is spending and receiving resources in accordance with laws,regulations or policies. 
B) To determine how resources should be allocated. 
C) To exercise general oversight responsibility. 
D) To do all of the above. 
A) To ensure that the entity is spending and receiving resources in accordance with laws,regulations or policies. 
B) To determine how resources should be allocated. 
C) To exercise general oversight responsibility. 
D) To do all of the above.

Question 13

Which of the following is an objective of financial reporting by state and local governments as established by the GASB? Financial reporting should assist users in

Accepted Answer

A) Assessing the management skills of top management. 
B) Determining if current-period revenues were sufficient to pay for current-period services. 
C) Evaluating the cash management operations of the government for the year. 
D) Assessing whether the government provided appropriate services to its constituents in the current year. 
A) Assessing the management skills of top management. 
B) Determining if current-period revenues were sufficient to pay for current-period services. 
C) Evaluating the cash management operations of the government for the year. 
D) Assessing whether the government provided appropriate services to its constituents in the current year.

Question 14

A government's budget may be backed by the force of law.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?

Accepted Answer

A) Investors and creditors. 
B) Taxpayers. 
C) Donors. 
D) Internal managers. 
A) Investors and creditors. 
B) Taxpayers. 
C) Donors. 
D) Internal managers.

Question 16

Which of the following constituency groups would be most likely to evaluate government financial statements to determine likely areas in which to achieve cost-savings?

Accepted Answer

A) Creditors. 
B) Union officials representing the government's employees. 
C) Federal agencies that provide purpose-restricted grants. 
D) Students of government accounting. 
A) Creditors. 
B) Union officials representing the government's employees. 
C) Federal agencies that provide purpose-restricted grants. 
D) Students of government accounting.

Question 17

Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?

Accepted Answer

A) To determine if the government has complied with bond covenants. 
B) To determine if the government has complied with taxing limitations. 
C) To determine if the government has complied with donor restrictions on the use of funds. 
D) To determine all of the above. 
A) To determine if the government has complied with bond covenants. 
B) To determine if the government has complied with taxing limitations. 
C) To determine if the government has complied with donor restrictions on the use of funds. 
D) To determine all of the above.

Question 18

Which of the following objectives is considered the cornerstone of financial reporting by a state or local government?

Accepted Answer

A) Accountability. 
B) Budgetary compliance. 
C) Interperiod equity. 
D) Service efforts and accomplishments. 
A) Accountability. 
B) Budgetary compliance. 
C) Interperiod equity. 
D) Service efforts and accomplishments.

Question 19

The main objective of a typical government or not-for-profit entity is to earn a profit.

Accepted Answer

A) True 
 B)False

Question 20

Under certain circumstances a government might use standards established by which of the following standard-setting bodies?

Accepted Answer

A) GASB. 
B) FASB. 
C) AICPA. 
D) All of the above. 
A) GASB. 
B) FASB. 
C) AICPA. 
D) All of the above.

Which of the following entities was a principal in creating the FASAB?

As used by the GASB,interperiod equity refers to which of the following? Financial reporting should:

Governments and not-for-profit entities may never engage in business-type activities.

Given a specific set of data,the basis of accounting selected by or imposed on a government will least affect which of the following?

The purpose of the FASAB is to establish accounting standards for

Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:

The Federal Accounting Standards Advisory Board's standards do not apply to the federal Department of the Treasury.

Which of the following characteristics distinguishes a government or not-for-profit entity from a business?

Which of the following characteristics is unique to governments?

Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to

The most significant financial document provided by a government is the

A regulatory agency would use the external financial statements of a local government for which of the following purposes?

Which of the following is an objective of financial reporting by state and local governments as established by the GASB? Financial reporting should assist users in

A government's budget may be backed by the force of law.

Which of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?

Which of the following constituency groups would be most likely to evaluate government financial statements to determine likely areas in which to achieve cost-savings?

Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?

Which of the following objectives is considered the cornerstone of financial reporting by a state or local government?

The main objective of a typical government or not-for-profit entity is to earn a profit.

Under certain circumstances a government might use standards established by which of the following standard-setting bodies?

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters

Exam 1: The Government and Not-For-Profit Environment

Which of the following entities was a principal in creating the FASAB?

As used by the GASB,interperiod equity refers to which of the following? Financial reporting should:

Governments and not-for-profit entities may never engage in business-type activities.

Given a specific set of data,the basis of accounting selected by or imposed on a government will least affect which of the following?

The purpose of the FASAB is to establish accounting standards for

Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:

The Federal Accounting Standards Advisory Board's standards do not apply to the federal Department of the Treasury.

Which of the following characteristics distinguishes a government or not-for-profit entity from a business?

Which of the following characteristics is unique to governments?

Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to

The most significant financial document provided by a government is the

A regulatory agency would use the external financial statements of a local government for which of the following purposes?

Which of the following is an objective of financial reporting by state and local governments as established by the GASB? Financial reporting should assist users in

A government's budget may be backed by the force of law.

Which of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?

Which of the following constituency groups would be most likely to evaluate government financial statements to determine likely areas in which to achieve cost-savings?

Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?

Which of the following objectives is considered the cornerstone of financial reporting by a state or local government?

The main objective of a typical government or not-for-profit entity is to earn a profit.

Under certain circumstances a government might use standards established by which of the following standard-setting bodies?

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters