100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Accounting for Governmental and Nonprofit Entities 17th Edition By Reck and Lowensohn Test Bank £17.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting Test Bank
  4.  
  5. Accounting Test Bank
  6.  
  7. Accounting Test Bank

Exam (elaborations)

Accounting for Governmental and Nonprofit Entities 17th Edition By Reck and Lowensohn Test Bank
 12 views  0 purchase

Chapter 01 Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities True / False Questions 1. Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. True False ...

[Show more]

Preview 4 out of 645  pages

Document information

  • August 17, 2023
  • 645
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (74)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

Chapter 01
Introduction to Accounting and Financial Reporting for
Governmental and Not-for-Profit Entities



True / False Questions

1. Special purpose governments generally provide a wider range of services to their
residents than do general purpose governments.

True False

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

True False

3. 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.

True False

4. The Governmental Accounting Standards Board (GASB) is the body authorized to
establish accounting principles for all government entities.

True False

5. The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.

True False

6. Neither governmental nor not-for-profit entities have residual equity that can be
distributed to owners.

True False

7. 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.

True False

8. The needs of users of government financial reports are the same as those of users of
business entity financial reports.

True False

,9. The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.

True False

10. The FASB, GASB, and FASAB identify primarily external users as the focus of their
financial reports.

True False

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

True False

12. 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.

True False

13. The Financial Accounting Foundation has oversight over both FASB and GASB.

True False

14. In addition to financial statements and notes, GASB requires governments to provide
information on service efforts and accomplishments (SEA) in their reports to the public.

True False

15. Providing information on accountability is the primary financial reporting objective for
both governmental and not-for-profit entities.

True False

16. A difference in the financial reporting objectives for governmental entities and not-for-
profit entities is that governmental entities report on compliance with laws, regulations, and rules
that impact financial reports.

True False

17. Since neither governmental nor not-for-profit entities have investors, the financial
reporting objectives are the same for both types of entities.

True False

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

True False

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

True False

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

True False

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

True False

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

True False

23. The governmental fund financial statements are useful in assessing operational
accountability.

True False

24. Government-wide financial statements are prepared using the accrual basis of accounting.

True False

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

True False




Multiple Choice Questions

, 26. The Governmental Accounting Standards Board is assigned responsibility for setting
accounting and financial reporting standards for

A. Governments such as federal agencies, states, cities, counties, villages, and townships.
B. State and local government entities and governmentally-related units and agencies, such
as utilities, authorities, hospitals, and colleges and universities.
C. Not-for-profit organizations.
D. State and local governments and all not-for-profit organizations.

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

A. Financial Accounting Standards Board (FASB).
B. Governmental Accounting Standards Board (GASB).
C. Federal Accounting Foundation (FAF).
D. Federal Accounting Standards Advisory Board (FASAB).

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

A. All not-for-profit organizations that are nongovernmental and business entities.
B. All not-for-profit organizations and business entities.
C. All not-for-profit organizations.
D. Special purpose governments with a business purpose.

29. You are trying to decide if an entity you are reviewing is a government or a not-for-
profit. Which of the following would indicate it is a government rather than a not-for-profit
entity?

A. Absence of profit motive.
B. A primary source of revenues is taxes.
C. Resource providers do not expect benefits proportional to the resources provided.
D. Absence of a defined ownership interest that can be sold, transferred, or redeemed.

30. Which of the following is identified by the GASB as the "cornerstone" of all financial
reporting in government?

A. Decision usefulness.
B. Stewardship.
C. Accountability.
D. Interperiod equity.

31. Which of the following organizations issue standards that focus on both internal and
external financial reporting?

A. Federal Accounting Standards Advisory Board.
B. Governmental Accounting Standards Board.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

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 ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £17.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£17.49
  • (0)
  Add to cart