Question 1

Which of the following are included in the GASB standards budgetary principle?

Accepted Answer

A)  Accounting systems should provide the basis for appropriate budgetary control. 
B)  Annual budgets should be adopted by every governmental unit. 
C)  Budgetary comparisons should be included in the appropriate financial statements. 
D)  All of the above 
A)  Accounting systems should provide the basis for appropriate budgetary control. 
B)  Annual budgets should be adopted by every governmental unit. 
C)  Budgetary comparisons should be included in the appropriate financial statements. 
D)  All of the above D

Question 2

Which of the following characteristics would not define an organization as governmental?

Accepted Answer

A)  The power to enact and enforce a tax levy. 
B)  The potential for unilateral dissolution by a government with the net assets reverting to a government. 
C)  The receipt of grant money from a state or local government for the purpose of providing services to the public. 
D)  All of the above. 
A)  The power to enact and enforce a tax levy. 
B)  The potential for unilateral dissolution by a government with the net assets reverting to a government. 
C)  The receipt of grant money from a state or local government for the purpose of providing services to the public. 
D)  All of the above. C

Question 3

The FASAB was established to recommend accounting and financial reporting standards for governmental and commercial enterprises.

Accepted Answer

A) True 
 B)False  False

Question 4

The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.

Accepted Answer

A) True 
 B)False

Question 5

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Accepted Answer

A)  The government wants to keep the earnings discrete 
B)  Net income is solely for private organizations 
C)  Tax and other non exchange revenues are not equivalent to sales 
D)  Net income is solely for public organizations 
A)  The government wants to keep the earnings discrete 
B)  Net income is solely for private organizations 
C)  Tax and other non exchange revenues are not equivalent to sales 
D)  Net income is solely for public organizations

Question 6

Under GASB Statement 34,modified accrual accounting would be found in the:

Accepted Answer

A)  government-wide financial statements only. 
B)  governmental fund financial statements only. 
C)  governmental and fiduciary fund financial statements only. 
D)  governmental, proprietary, and fiduciary fund financial statements but not in the government-wide financial statements. 
A)  government-wide financial statements only. 
B)  governmental fund financial statements only. 
C)  governmental and fiduciary fund financial statements only. 
D)  governmental, proprietary, and fiduciary fund financial statements but not in the government-wide financial statements.

Question 7

What are the four objectives that should be followed with respect to federal financial reporting according to SFFAC #1 as issued by the FASAB?

Accepted Answer

Budgetary integrity Financial reporting

Question 8

All Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

Accepted Answer

A) True 
 B)False

Question 9

Measurement focus refers to those items,such as current and long-term assets,that are being reported on the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Identify the three basic fund categories,the funds that make up each of them,and the category's basis of accounting.

Accepted Answer

1.Governmental - Funds include permanent

Question 11

The ______ Funds are used to account for situations in which the government is acting as a collecting/disbursing agent.

Accepted Answer

A)  Special Revenue 
B)  General 
C)  Enterprise 
D)  Agency 
A)  Special Revenue 
B)  General 
C)  Enterprise 
D)  Agency

Question 12

Which of the following funds is used to account for the payment of principal and interest of general long term debt of a government?

Accepted Answer

A)  General Fund 
B)  Debt Service Fund 
C)  Agency Fund 
D)  Capital Projects Fund 
A)  General Fund 
B)  Debt Service Fund 
C)  Agency Fund 
D)  Capital Projects Fund

Question 13

FASB sets the reporting standards for private and public not-for profits.

Accepted Answer

A) True 
 B)False

Question 14

A Management's Discussion and Analysis is required for state and local governmental units,but not the federal government.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is most correct with regard to Management's Discussion and Analysis (MD&A)?

Accepted Answer

A)  State and local governments are required to provide an MD&A. 
B)  Federal agency financial reports are required to provide an MD&A. 
C)  Both state and local governments and federal agencies are encouraged, but not required to provide an MD&A. 
D)  Both state and local governments and federal agencies are required to provide an MD&A. 
A)  State and local governments are required to provide an MD&A. 
B)  Federal agency financial reports are required to provide an MD&A. 
C)  Both state and local governments and federal agencies are encouraged, but not required to provide an MD&A. 
D)  Both state and local governments and federal agencies are required to provide an MD&A.

Question 16

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

Accepted Answer

A)  all governmental units and agencies. 
B)  federal, state, and local governments. 
C)  all governmental units and all not-for-profit organizations. 
D)  state and local governmental entities, and governmentally-owned utilities, authorities, hospitals, and colleges and universities. 
A)  all governmental units and agencies. 
B)  federal, state, and local governments. 
C)  all governmental units and all not-for-profit organizations. 
D)  state and local governmental entities, and governmentally-owned utilities, authorities, hospitals, and colleges and universities.

Question 17

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Accepted Answer

A) True 
 B)False

Question 18

Proprietary funds use the:

Accepted Answer

A)  economic resources measurement focus and modified accrual basis of accounting. 
B)  current financial resources measurement focus and modified accrual basis of accounting. 
C)  economic resources measurement focus and accrual basis of accounting. 
D)  current financial resources measurement focus and accrual basis of accounting. 
A)  economic resources measurement focus and modified accrual basis of accounting. 
B)  current financial resources measurement focus and modified accrual basis of accounting. 
C)  economic resources measurement focus and accrual basis of accounting. 
D)  current financial resources measurement focus and accrual basis of accounting.

Question 19

The GASB sets accounting standards for all of the following except:

Accepted Answer

A)  State and local governments 
B)  Libraries owned or controlled by governments 
C)  Governmentally related not-for-profit universities 
D)  Nongovernmental not-for-profit hospital 
A)  State and local governments 
B)  Libraries owned or controlled by governments 
C)  Governmentally related not-for-profit universities 
D)  Nongovernmental not-for-profit hospital

Question 20

Which of the following is not one of the objectives of Federal Financial Reporting,as outlined in SAFAC 1,which was issued by the FASAB?

Accepted Answer

A)  Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the reporting entity. 
B)  Financial reporting should enable evaluation of the success rate of programs. 
C)  Financial reporting should reveal whether financial systems and controls are adequate. 
D)  Financial reporting should demonstrate accountability regarding raising and expending money according to budgetary process and laws and regulations. 
A)  Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the reporting entity. 
B)  Financial reporting should enable evaluation of the success rate of programs. 
C)  Financial reporting should reveal whether financial systems and controls are adequate. 
D)  Financial reporting should demonstrate accountability regarding raising and expending money according to budgetary process and laws and regulations.

Which of the following are included in the GASB standards budgetary principle?

Which of the following characteristics would not define an organization as governmental?

The FASAB was established to recommend accounting and financial reporting standards for governmental and commercial enterprises.

The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Under GASB Statement 34,modified accrual accounting would be found in the:

What are the four objectives that should be followed with respect to federal financial reporting according to SFFAC #1 as issued by the FASAB?

All Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

Measurement focus refers to those items,such as current and long-term assets,that are being reported on the financial statements.

Identify the three basic fund categories,the funds that make up each of them,and the category's basis of accounting.

The ______ Funds are used to account for situations in which the government is acting as a collecting/disbursing agent.

Which of the following funds is used to account for the payment of principal and interest of general long term debt of a government?

FASB sets the reporting standards for private and public not-for profits.

A Management's Discussion and Analysis is required for state and local governmental units,but not the federal government.

Which of the following is most correct with regard to Management's Discussion and Analysis (MD&A)?

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Proprietary funds use the:

The GASB sets accounting standards for all of the following except:

Which of the following is not one of the objectives of Federal Financial Reporting,as outlined in SAFAC 1,which was issued by the FASAB?

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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

Which of the following are included in the GASB standards budgetary principle?

Which of the following characteristics would not define an organization as governmental?

The FASAB was established to recommend accounting and financial reporting standards for governmental and commercial enterprises.

The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Under GASB Statement 34,modified accrual accounting would be found in the:

What are the four objectives that should be followed with respect to federal financial reporting according to SFFAC #1 as issued by the FASAB?

All Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

Measurement focus refers to those items,such as current and long-term assets,that are being reported on the financial statements.

Identify the three basic fund categories,the funds that make up each of them,and the category's basis of accounting.

The ______ Funds are used to account for situations in which the government is acting as a collecting/disbursing agent.

Which of the following funds is used to account for the payment of principal and interest of general long term debt of a government?

FASB sets the reporting standards for private and public not-for profits.

A Management's Discussion and Analysis is required for state and local governmental units,but not the federal government.

Which of the following is most correct with regard to Management's Discussion and Analysis (MD&A)?

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Proprietary funds use the:

The GASB sets accounting standards for all of the following except:

Which of the following is not one of the objectives of Federal Financial Reporting,as outlined in SAFAC 1,which was issued by the FASAB?

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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