Exam 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for

Which of the following is not an example of a support expense reported by not-for-profit entities?

Which of the following should be included in the financial section of a comprehensive annual financial report?

Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?

The GASB provides optional guidance for those entities providing service efforts and accomplishments (SEA)reports to the public.

The Office of Management and Budget (OMB)requires major federal departments and agencies to prepare an annual performance report.

The minimum requirements for general purpose external financial reporting are (1)management's discussion and analysis (MD&A),(2)the basic financial statements,including the notes to the financial statements,and (3)combining and individual fund financial statements.

Explain in your own words why accountability is the cornerstone of all financial reporting in government.

The FASB standards require not-for-profit entities to separately report program expenses and support expenses.

Both the GASB and the FASB require entities to include a management discussion and analysis in the financial reports.

GASB and FASB standards are concerned only with external financial reporting; whereas,FASAB standards are concerned with both internal and external financial reporting.Do you agree with this statement? Why or why not?

The governmental fund financial statements are intended to report on fiscal accountability.

Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR),but not in the minimum requirements for general purpose financial reporting specified by GASB standards?

Examples of general purpose governments include cities,towns,and public schools that receive tax revenue to finance the services they provide.

A characteristic common to governmental and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent.

The Governmental Accounting Standards Board (GASB)is the body authorized to establish accounting principles for all state and local governments,both general purpose and special purpose.

The FASB standards require not-for-profit entities to report net assets in three categories: unrestricted,restricted,and net investment in capital assets.

The section of the comprehensive annual financial report that presents tables and charts showing social and economic data in addition to financial trends,fiscal capacity,and operating information of the government is the:

The body that has been established to recommend accounting and financial reporting standards for the federal government is the

Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year,so that future taxpayers will not be required to assume the burden for services previously provided.