Question 1

The GASB recently published a white paper outlining prohibited transactions for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 2

A city government sells police cars no longer in use.No restrictions have been placed on the proceeds.Which fund should account for the receipt?

Accepted Answer

A)  Debt service fund 
B)  Capital projects fund 
C)  Enterprise fund 
D)  General fund

Question 3

Which of the following is a fiduciary fund?

Accepted Answer

A)  Internal service 
B)  Permanent 
C)  Enterprise 
D)  Investment trust

Question 4

Governmental funds are to use the:

Accepted Answer

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

Question 5

The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities.

Accepted Answer

A) True 
 B)False

Question 6

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Under GASB Statement 34,accrual accounting is used for:

Accepted Answer

A)  government-wide financial statements only. 
B)  government-wide financial statements and proprietary fund financial statements only. 
C)  government-wide, proprietary fund, and fiduciary fund financial statements only. 
D)  government-wide and all fund financial statements.

Question 8

State and local governments may use eleven different fund types.

Accepted Answer

A) True 
 B)False

Question 9

A government may have multiple funds for each of the following fund types except:

Accepted Answer

A)  Permanent 
B)  General 
C)  Special revenue 
D)  Capital projects

Question 10

The format and content of supplementary information which is not required by GASB is up to the discretion of the reporting entity.

Accepted Answer

A) True 
 B)False

Question 11

The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government.

Accepted Answer

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

Question 12

State and local governmental funds are organized into three categories including:

Accepted Answer

A)  governmental, proprietary, and restricted 
B)  proprietary, fiduciary, and restricted 
C)  governmental, fiduciary, and restricted 
D)  governmental, proprietary, and fiduciary

Question 13

Comparison of the legally approved budget with actual results of the General Fund is not part of required supplementary information in the CAFR.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would not be included in FASB Statement of Financial Accounting Concepts #4,which identifies the information needs of the users of non-business financial statements?

Accepted Answer

A)  Format and content of financial statements 
B)  Assessing services provided by a non-business organization and its ability to continue to provide those services 
C)  Assessing managements' stewardship and performance 
D)  Evaluation of an organization's resources, obligations and effects of changes in net resources

Question 15

According to GASB standards relating to Budgetary Accounting,an annual budget should be adopted by every governmental unit.

Accepted Answer

A) True 
 B)False

Question 16

Common measurement focus and basis of measurement is an important feature of government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 17

The GASB is under the oversight of:

Accepted Answer

A)  GAO. 
B)  FASAB. 
C)  FAF. 
D)  FASB.

Question 18

Capitalized fixed assets are reported in which financial statement?

Accepted Answer

A)  Agency fund 
B)  Proprietary fund 
C)  Governmental fund 
D)  All of the above

Question 19

Provide the definition of the following terms as outlined by GASB Concepts Statement No.4,Elements of Financial Statements:
Assets
Liabilities
Net position
Inflows of resources
Outflows of resources

Accepted Answer

The answer of Provide the definition of the following terms...

Question 20

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of capital assets.

Accepted Answer

The answer of Contrast the economic resources measurement focus and...

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

The GASB recently published a white paper outlining prohibited transactions for not-for-profit organizations.

A city government sells police cars no longer in use.No restrictions have been placed on the proceeds.Which fund should account for the receipt?

Which of the following is a fiduciary fund?

Governmental funds are to use the:

The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities.

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

Under GASB Statement 34,accrual accounting is used for:

State and local governments may use eleven different fund types.

A government may have multiple funds for each of the following fund types except:

The format and content of supplementary information which is not required by GASB is up to the discretion of the reporting entity.

The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government.

State and local governmental funds are organized into three categories including:

Comparison of the legally approved budget with actual results of the General Fund is not part of required supplementary information in the CAFR.

Which of the following would not be included in FASB Statement of Financial Accounting Concepts #4,which identifies the information needs of the users of non-business financial statements?

According to GASB standards relating to Budgetary Accounting,an annual budget should be adopted by every governmental unit.

Common measurement focus and basis of measurement is an important feature of government-wide financial statements.

The GASB is under the oversight of:

Capitalized fixed assets are reported in which financial statement?

Provide the definition of the following terms as outlined by GASB Concepts Statement No.4,Elements of Financial Statements: Assets Liabilities Net position Inflows of resources Outflows of resources

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of capital assets.