Question 1

How is the Unrelated Business Income Tax computed?

Accepted Answer

When computing unrelated business income

Question 2

What factors would cause income that would otherwise qualify as unrelated business income to not be taxed?

Accepted Answer

The existence of one or more of the foll

Question 3

What is the objective of the single audit process?

Accepted Answer

Single audits are intended to provide as

Question 4

A local government has four federal grants. Expenditures during the year ended June 30,2015,are below:
   A.Which grants would the auditor be required to audit,assuming the government is not found to be low risk?
B.Which grants would the auditor be required to audit,assuming the government is found to be low risk?

Accepted Answer

A.If the government is not found to be l

Question 5

Which of the following is true regarding the Single Audit Act and its amendments?

Accepted Answer

A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  An auditor is expected to express an opinion on "major programs," which are chosen based on size. 
B)  An auditor is required to select all "Type A" programs as major programs. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 6

The program expense ratio is calculated as follows:

Accepted Answer

A)  Total expenses / Program service expenses 
B)  Program service expenses + supporting service expenses / Total expenses 
C)  Program service expenses / Total expenses 
D)  Total expenses / (Program service expenses + supporting service expenses) 
A)  Total expenses / Program service expenses 
B)  Program service expenses + supporting service expenses / Total expenses 
C)  Program service expenses / Total expenses 
D)  Total expenses / (Program service expenses + supporting service expenses)

Question 7

Government financial audits are subject only to GAGAS.

Accepted Answer

A) True 
 B)False

Question 8

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fund-raising expense,$3,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

Accepted Answer

A)  24%. 
B)  39%. 
C)  43%. 
D)  70%. 
A)  24%. 
B)  39%. 
C)  43%. 
D)  70%.

Question 9

The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that:

Accepted Answer

A)  Federal funds have been expended in accordance with laws and regulations. 
B)  Federal funds are protected through a system of internal controls and sound financial management practices. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  Federal funds have been expended in accordance with laws and regulations. 
B)  Federal funds are protected through a system of internal controls and sound financial management practices. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 10

A public charity is:

Accepted Answer

A)  An organization founded and operated exclusively for public safety. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  An organization operated exclusively for the benefit of a church. 
D)  All of the above are considered to be public charities. 
A)  An organization founded and operated exclusively for public safety. 
B)  An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities. 
C)  An organization operated exclusively for the benefit of a church. 
D)  All of the above are considered to be public charities.

Question 11

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Accepted Answer

A) True 
 B)False

Question 12

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Accepted Answer

A)  Higher materiality thresholds than in the private sector. 
B)  Public availability of audit reports. 
C)  Written evaluation of internal controls. 
D)  Requirement that auditors have knowledge of government accounting and auditing. 
A)  Higher materiality thresholds than in the private sector. 
B)  Public availability of audit reports. 
C)  Written evaluation of internal controls. 
D)  Requirement that auditors have knowledge of government accounting and auditing.

Question 13

Which organization promulgates the Government Auditing Standards?

Accepted Answer

A)  The American Institute of Certified Public Accountants. 
B)  The U.S. Office of Management and Budget. 
C)  The U.S. Government Accountability Office. 
D)  The U.S. Congressional Budget Office. 
A)  The American Institute of Certified Public Accountants. 
B)  The U.S. Office of Management and Budget. 
C)  The U.S. Government Accountability Office. 
D)  The U.S. Congressional Budget Office.

Question 14

Entities that expend $500,000 or less of federal funds are generally required to have a single audit.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a governmental audit that is concerned with examining,reviewing,or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?

Accepted Answer

A)  Financial Audit. 
B)  Attestation Engagement. 
C)  Performance Audits. 
D)  Nonaudit Services. 
A)  Financial Audit. 
B)  Attestation Engagement. 
C)  Performance Audits. 
D)  Nonaudit Services.

Question 16

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

Accepted Answer

A) True 
 B)False

Question 17

A government publishes information about its fire department. What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

Accepted Answer

A)  Input 
B)  Output 
C)  Outcome 
D)  Efficiency 
A)  Input 
B)  Output 
C)  Outcome 
D)  Efficiency

Question 18

Which of the following is not considered to be a major user group by the GASB?

Accepted Answer

A)  Citizen groups. 
B)  Investors and creditors. 
C)  Government executive branch officials. 
D)  Legislative and oversight officials. 
A)  Citizen groups. 
B)  Investors and creditors. 
C)  Government executive branch officials. 
D)  Legislative and oversight officials.

Question 19

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Accepted Answer

A)  Fund-raising efficiency. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  None of the above. 
A)  Fund-raising efficiency. 
B)  Program expense ratio. 
C)  Working capital ratio. 
D)  None of the above.

Question 20

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Accepted Answer

A) True 
 B)False

How is the Unrelated Business Income Tax computed?

What factors would cause income that would otherwise qualify as unrelated business income to not be taxed?

What is the objective of the single audit process?

Which of the following is true regarding the Single Audit Act and its amendments?

The program expense ratio is calculated as follows:

Government financial audits are subject only to GAGAS.

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fund-raising expense,$3,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that:

A public charity is:

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Which organization promulgates the Government Auditing Standards?

Entities that expend $500,000 or less of federal funds are generally required to have a single audit.

Which of the following is a governmental audit that is concerned with examining,reviewing,or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

A government publishes information about its fire department. What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

Which of the following is not considered to be a major user group by the GASB?

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters

Exam 13: Auditing, Tax-Exempt Organizations, and Evaluating Performance

How is the Unrelated Business Income Tax computed?

What factors would cause income that would otherwise qualify as unrelated business income to not be taxed?

What is the objective of the single audit process?

Which of the following is true regarding the Single Audit Act and its amendments?

The program expense ratio is calculated as follows:

Government financial audits are subject only to GAGAS.

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fund-raising expense,$3,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that:

A public charity is:

The Taxpayer Bill of Rights requires tax-exempt organizations to provide copies,upon request,of the three most recent annual form 990s.

Government Auditing Standards,published in a document called the Yellow Book,incorporate the AICPA standards and provide extensions that are necessary due to the unique nature of public entities. Which of the following is not one of the extensions?

Which organization promulgates the Government Auditing Standards?

Entities that expend $500,000 or less of federal funds are generally required to have a single audit.

Which of the following is a governmental audit that is concerned with examining,reviewing,or performing agreed upon procedures on a subject matter of an assertion and reporting on the results?

The three major user groups identified by the GASB are (1)citizen groups,(2)legislative and oversight officials,and (3)investors and creditors.

A government publishes information about its fire department. What type of service efforts and accomplishments measure would Fire Loss per Capita represent?

Which of the following is not considered to be a major user group by the GASB?

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

Service Efforts and Accomplishments Reporting is limited to financial measures such as revenues and expenses.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters