Exam (elaborations)
Test Bank for Government And Not For Profit Accounting Concepts And Practices 9th Edition Michael H. Granof
Test Bank for Government And Not For Profit Accounting Concepts And Practices 9th Edition Michael H. Granof
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
1 review
By: wanjuntan • 1 month ago
By: Achieversstudyguides • 1 month ago
Thank you for Choosing and shopping with us. We really appreciate your review, all the best in your academics! Feel free to consult, and message us for more study materials and exam solutions. Email me on terryguianna@gmail.com.
Content preview
Test Bank for Government And Not For Profit Accounting ConceptsAnd Practices 9th Edition Michael H. Granof
Chapter 1
The Government and Not-For-Profit Environment
TRUE/FALSE (CHAPTER 1)
M
1. The main objective of a typical government or not-for-profit entity is to earn a profit.
2. A government‘s budget may be backed by the force of law.
E
3. Governments have no need for an accounting system.
4. A government‘s internal managers rely on general purpose financial statements for a
considerable amount of information about their government.
5.
6.
D
Governments and not-for-profit entities may never engage in business-type activities.
Lenders use the financial statements of governments and not-for-profit entities just as they
G
would those of businesses, that is, to help assess the borrower‘s credit-worthiness.
7. Financial statements, no matter how prepared, do not directly affect the economic worth of
an entity.
E
8. The Federal Accounting Standards Advisory Board‘s standards do not apply to the federal
Department of the Treasury.
9. Governments may be subject to the same pressures that led to accounting scandals like
E
Enron.
10. The Governmental Accounting Standards Board establishes generally accepted accounting
K
principles for all state and local governments and all not-for-profit entities.
Granof Test Bank Chapter 1 Page 1
,MULTIPLE CHOICE (CHAPTER 1)
1. A primary characteristic that distinguishes governments from businesses is
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.
2. A primary characteristic that distinguishes not-for-profit entities from businesses is
M
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.
E
3. Which of the following characteristics distinguishes a government or not-for-profit entity
from a business?
a) There is always a direct link between revenues generated and expenditures/expenses
incurred.
b) Capital assets are used to produce revenues and save costs.
c) Revenues are always indicative of demand for goods and services.
D
d) The mission of the entity will determine the goods or services provided.
G
4. The most significant financial document provided by a government is the
a) Balance sheet.
b) Operating statement.
c) Operating budget.
d) Cash flow statement.
E
5. Which of the following statements is true?
a) Governments may engage in activities similar to activities engaged in by for-profit
entities.
E
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
K
the entity.
6. Which of the following activities is NOT an activity in which a government might engage?
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.
7. In which of the following activities is a not-for-profit entity least likely to engage?
a) Providing educational services.
b) Providing health-care services.
c) Providing for terrorism defense.
d) Retail sales of cookies.
Granof Test Bank Chapter 1 Page 2
,8. Which of the following can be affected by GAAP?
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.
9. Which of the following characteristics is unique to governments?
a) The ability to have activities financed with tax-exempt debt.
b) The power to impose fees.
M
c) The ability to issue tax-exempt debt.
d) The ability to have activities financed by Federal grants.
10. To obtain a comprehensive understanding of a government‘s fiscal health, a financial analyst
should obtain an understanding of which of the following?
E
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.
distinguishes these entities from for-profit entities?
a) The budget is a legal, financial document.
D
11. Which of the following is common to both governments and not-for-profit entities but
G
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.
12. Which of the following is NOT a purpose of external financial reporting by governments?
E
External financial reports should allow users to
a) Assess financial condition.
b) Compare actual results with the budget.
c) Assess the ability of elected officials to effectively manage people.
E
d) Evaluate efficiency and effectiveness.
13. Which of the following is NOT a reason why users need government and not-for-profit
K
external financial statements?
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.
14. Users of government financial statements should be interested in information about
compliance with laws and regulations for which of the following reasons?
a) To determine if the government has complied with bond covenants.
b) To determine if the government has complied with taxing limitations.
c) To determine if the government has complied with donor restrictions on the use of funds.
d) To determine all of the above.
Granof Test Bank Chapter 1 Page 3
, 15. Which of the following is NOT generally considered a main user of government and not-for-
profit entity external financial statements?
a) Investors and creditors.
b) Taxpayers.
c) Donors.
d) Internal managers.
16. Which of the following is a probable use a donor would make of the external financial
statements of a not-for-profit entity?
M
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.
E
17. A regulatory agency would use the external financial statements of a local government for
which of the following purposes?
a) To ensure that the entity is spending and receiving resources in accordance with laws,
regulations or policies.
b) To determine how resources should be allocated.
c) To exercise general oversight responsibility.
d) To do all of the above.
D
G
18. Which of the following constituency groups would be most likely to evaluate government
financial statements to determine likely areas in which to achieve cost-savings?
a) Creditors.
b) Union officials representing the government‘s employees.
E
c) Federal agencies that provide purpose-restricted grants.
d) Students of government accounting.
19. Which of the following objectives is considered the cornerstone of financial reporting by a
E
state or local government?
a) Accountability.
b) Budgetary compliance.
K
c) Interperiod equity.
d) Service efforts and accomplishments.
20. Which of the following is an objective of financial reporting by state and local governments
as established by the GASB? Financial reporting should assist users in
a) Assessing the management skills of top management.
b) Determining if current-period revenues were sufficient to pay for current-period services.
c) Evaluating the cash management operations of the government for the year.
d) Assessing whether the government provided appropriate services to its constituents in the
current year.
Granof Test Bank Chapter 1 Page 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Achieversstudyguides. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
63950 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now
Recently viewed by you
Exam (elaborations) ·
ALSO - Advanced Life Support in Obstetrics Questions and Answers | Latest Version | 2024/2025 | Already Passed
Exam (elaborations) ·
ACTUAL Test Bank Theory and Practice of Counseling and Psychotherapy 10th Edition by Corey-latest-202
Exam (elaborations) ·
GFEBS L432E Cost Collection and Allocation Questions and Answers | Latest Version | 2024/2025 | 100% Verified
Package deal ·
NURS 6531 BUNDLED / NURS6531 Final Exam & NRNP 6531 MIDTERM EXAM (Latest): Walden University (Already graded A)
Exam (elaborations) ·
Test Bank for Introduction to Genetic Analysis 12th Edition by Anthony Griffiths. ISBN: 9781319114787.
Exam (elaborations) ·
MN 576 UNIT 10 FINAL EXAM (VERSION 1)LATEST / MN576 UNIT 10 FINAL EXAM QUESTIONS AND CORRECT ANSWERS NEW UPDATE
Summary ·
Zelfgemaakte vragen + antwoorden die alle hoorcolleges, werkcolleges en casussen van FABA302 samenvatten
Exam (elaborations) ·
COS3711 Assignment 2 (COMPLETE ANSWERS) 2024 - DUE 18 July 2024 ; 100% TRUSTED workings, explanations and solutions
