Question 1

The Governmental Accounting Standards Board is the primary standard-setting body for:

Accepted Answer

A) All governments. 
B) All state and local governments. 
C) All governments and all not-for-profit entities. 
D) All state and local governments and all not-for-profit entities. 
A) All governments. 
B) All state and local governments. 
C) All governments and all not-for-profit entities. 
D) All state and local governments and all not-for-profit entities.

Question 2

In which of the following activities is a not-for-profit entity least likely to engage?

Accepted Answer

A) Providing educational services. 
B) Providing health-care services. 
C) Providing for terrorism defense. 
D) Retail sales of cookies. 
A) Providing educational services. 
B) Providing health-care services. 
C) Providing for terrorism defense. 
D) Retail sales of cookies.

Question 3

The Governmental Accounting Standards Board establishes generally accepted accounting principles for all state and local governments and all not-for-profit entities.

Accepted Answer

A) True 
 B)False

Question 4

A primary characteristic that distinguishes not-for-profit entities from businesses is

Accepted Answer

A) The need to generate revenues equal to or in excess of expenditures/expenses. 
B) The importance of the budget in the governing process. 
C) The need to provide goods or services. 
D) The correlation between revenues generated and demand for goods or services. 
A) The need to generate revenues equal to or in excess of expenditures/expenses. 
B) The importance of the budget in the governing process. 
C) The need to provide goods or services. 
D) The correlation between revenues generated and demand for goods or services.

Question 5

In descending order,the hierarchy of GAAP applicable to a church-owned college may be:

Accepted Answer

A) FASB Statements and Interpretations,FASB Technical Bulletins,AICPA Industry Audit Guides,FASB Implementation Guides,other accounting literature-including GASB standards. 
B) FASB Statements and Interpretations,FASB Technical Bulletins,FASB Implementation Guides,AICPA Practice Bulletins if cleared by FAS
B) . 
C) GASB Statements and Interpretations,AICPA Industry Audit Guides,GASB Implementation Guides,other accounting literature-including FASB standards. 
D) GASB Statements and Interpretations,GASB Technical Bulletins,AICPA Industry Audit Guides,AICPA Practice Bulletins if cleared by GAS
B) ,GASB Implementation Guides,other accounting literature-including FASB standards. 
A) FASB Statements and Interpretations,FASB Technical Bulletins,AICPA Industry Audit Guides,FASB Implementation Guides,other accounting literature-including GASB standards. 
B) FASB Statements and Interpretations,FASB Technical Bulletins,FASB Implementation Guides,AICPA Practice Bulletins if cleared by FAS
B) . 
C) GASB Statements and Interpretations,AICPA Industry Audit Guides,GASB Implementation Guides,other accounting literature-including FASB standards. 
D) GASB Statements and Interpretations,GASB Technical Bulletins,AICPA Industry Audit Guides,AICPA Practice Bulletins if cleared by GAS
B) ,GASB Implementation Guides,other accounting literature-including FASB standards.

Question 6

Which of the following can be affected by GAAP?

Accepted Answer

A) Legal ability to issue bonds. 
B) Ability to balance the budget. 
C) Amount reported as employee pension plan contributions. 
D) Claims and judgments settled. 
A) Legal ability to issue bonds. 
B) Ability to balance the budget. 
C) Amount reported as employee pension plan contributions. 
D) Claims and judgments settled.

Question 7

Financial statements,no matter how prepared,do not directly affect the economic worth of an entity.

Accepted Answer

A) True 
 B)False

Question 8

A primary characteristic that distinguishes governments from businesses is

Accepted Answer

A) The need to generate revenues equal to or in excess of expenditures/expenses. 
B) The importance of the budget in the governing process. 
C) The need to provide goods or services. 
D) The correlation between revenues generated and demand for goods or services. 
A) The need to generate revenues equal to or in excess of expenditures/expenses. 
B) The importance of the budget in the governing process. 
C) The need to provide goods or services. 
D) The correlation between revenues generated and demand for goods or services.

Question 9

Which of the following statements is true?

Accepted Answer

A) Governments may engage in activities similar to activities engaged in by for-profit entities. 
B) There are a limited number of different types of governments. 
C) All governments engage in the same activities. 
D) Managers may have a long-term focus and thereby sacrifice the short-term liquidity of the entity. 
A) Governments may engage in activities similar to activities engaged in by for-profit entities. 
B) There are a limited number of different types of governments. 
C) All governments engage in the same activities. 
D) Managers may have a long-term focus and thereby sacrifice the short-term liquidity of the entity.

Question 10

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

Accepted Answer

A) The budget is a legal,financial document. 
B) Revenues are usually indicative of demand for goods or services. 
C) There is direct matching of revenues and expenses. 
D) There are no defined ownership interests. 
A) The budget is a legal,financial document. 
B) Revenues are usually indicative of demand for goods or services. 
C) There is direct matching of revenues and expenses. 
D) There are no defined ownership interests.

Question 11

To obtain a comprehensive understanding of a government's fiscal health,a financial analyst should obtain an understanding of which of the following?

Accepted Answer

A) All the resources owned by the government. 
B) All the resources that may be summoned by the government. 
C) Demographic data about the residents served by the government. 
D) All of the above. 
A) All the resources owned by the government. 
B) All the resources that may be summoned by the government. 
C) Demographic data about the residents served by the government. 
D) All of the above.

Question 12

Governments may be subject to the same pressures that led to accounting scandals like Enron.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a probable use a donor would make of the external financial statements of a not-for-profit entity?

Accepted Answer

A) To determine the proportion of entity resources directed to programs as opposed to fund-raising. 
B) To determine the creditworthiness of the entity for investment purposes. 
C) To determine the salaries paid to all employees of the entity. 
D) To determine the budget of the entity. 
A) To determine the proportion of entity resources directed to programs as opposed to fund-raising. 
B) To determine the creditworthiness of the entity for investment purposes. 
C) To determine the salaries paid to all employees of the entity. 
D) To determine the budget of the entity.

Question 14

The basis of accounting selected by or imposed on a government can influence which of the following?

Accepted Answer

A) A decision to contract-out a specific service rather than provide that service itself. 
B) The amount of salary increases proposed by union negotiators. 
C) The amount that is available to spend on a donor-specified project or service. 
D) All of the above. 
A) A decision to contract-out a specific service rather than provide that service itself. 
B) The amount of salary increases proposed by union negotiators. 
C) The amount that is available to spend on a donor-specified project or service. 
D) All of the above.

Question 15

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

Accepted Answer

A) To determine the ability of the entity to meet its obligations. 
B) To determine the ability of the entity to continue to provide services. 
C) To predict future fiscal solvency. 
D) To evaluate the overall profitability of the entity. 
A) To determine the ability of the entity to meet its obligations. 
B) To determine the ability of the entity to continue to provide services. 
C) To predict future fiscal solvency. 
D) To evaluate the overall profitability of the entity.

Question 16

Which of the following activities is NOT an activity in which a government might engage?

Accepted Answer

A) Selling electric power. 
B) Operating a golf course. 
C) Operating a bookstore. 
D) All of the above are activities that might be carried out by a government. 
A) Selling electric power. 
B) Operating a golf course. 
C) Operating a bookstore. 
D) All of the above are activities that might be carried out by a government.

Question 17

Lenders use the financial statements of governments and not-for-profit entities just as they would those of businesses,that is,to help assess the borrower's credit-worthiness.

Accepted Answer

A) True 
 B)False

Question 18

The primary standard-setting body for accounting and financial reporting by a state-supported college or university is:

Accepted Answer

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

Question 19

Governments have no need for an accounting system.

Accepted Answer

A) True 
 B)False

Question 20

A government's internal managers rely on general purpose financial statements for a considerable amount of information about their government.

Accepted Answer

A) True 
 B)False

The Governmental Accounting Standards Board is the primary standard-setting body for:

In which of the following activities is a not-for-profit entity least likely to engage?

The Governmental Accounting Standards Board establishes generally accepted accounting principles for all state and local governments and all not-for-profit entities.

A primary characteristic that distinguishes not-for-profit entities from businesses is

In descending order,the hierarchy of GAAP applicable to a church-owned college may be:

Which of the following can be affected by GAAP?

Financial statements,no matter how prepared,do not directly affect the economic worth of an entity.

A primary characteristic that distinguishes governments from businesses is

Which of the following statements is true?

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

To obtain a comprehensive understanding of a government's fiscal health,a financial analyst should obtain an understanding of which of the following?

Governments may be subject to the same pressures that led to accounting scandals like Enron.

Which of the following is a probable use a donor would make of the external financial statements of a not-for-profit entity?

The basis of accounting selected by or imposed on a government can influence which of the following?

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

Which of the following activities is NOT an activity in which a government might engage?

Lenders use the financial statements of governments and not-for-profit entities just as they would those of businesses,that is,to help assess the borrower's credit-worthiness.

The primary standard-setting body for accounting and financial reporting by a state-supported college or university is:

Governments have no need for an accounting system.

A government's internal managers rely on general purpose financial statements for a considerable amount of information about their government.

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

The Governmental Accounting Standards Board is the primary standard-setting body for:

In which of the following activities is a not-for-profit entity least likely to engage?

The Governmental Accounting Standards Board establishes generally accepted accounting principles for all state and local governments and all not-for-profit entities.

A primary characteristic that distinguishes not-for-profit entities from businesses is

In descending order,the hierarchy of GAAP applicable to a church-owned college may be:

Which of the following can be affected by GAAP?

Financial statements,no matter how prepared,do not directly affect the economic worth of an entity.

A primary characteristic that distinguishes governments from businesses is

Which of the following statements is true?

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

To obtain a comprehensive understanding of a government's fiscal health,a financial analyst should obtain an understanding of which of the following?

Governments may be subject to the same pressures that led to accounting scandals like Enron.

Which of the following is a probable use a donor would make of the external financial statements of a not-for-profit entity?

The basis of accounting selected by or imposed on a government can influence which of the following?

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

Which of the following activities is NOT an activity in which a government might engage?

Lenders use the financial statements of governments and not-for-profit entities just as they would those of businesses,that is,to help assess the borrower's credit-worthiness.

The primary standard-setting body for accounting and financial reporting by a state-supported college or university is:

Governments have no need for an accounting system.

A government's internal managers rely on general purpose financial statements for a considerable amount of information about their government.

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