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:
Content preview
Test nBank nfor nGovernment nAnd nNot nFor nProfit nAccountingnConcepts nAnd nPractices n9th nEdition nMichael nH. nGranof
Chapter n1
The nGovernment nand nNot-For-Profit nEnvironment
TRUE/FALSE n(CHAPTER n1)
1. The nmain nobjective nof na ntypical ngovernment nor nnot-for-profit nentity nis nto nearn na nprofit.
2. A ngovernment‘s nbudget nmay nbe nbacked nby nthe nforce nof nlaw.
3. Governments nhave nno nneed nfor nan naccounting nsystem.
4. A ngovernment‘s ninternal nmanagers nrely non ngeneral npurpose nfinancial
nstatements nfor na nconsiderable namount nof ninformation nabout ntheir
ngovernment.
5. Governments nand nnot-for-profit nentities nmay nnever nengage nin nbusiness-type nactivities.
6. Lenders nuse nthe nfinancial nstatements nof ngovernments nand nnot-for-profit nentities
njust nas nthey nwould nthose nof nbusinesses, nthat nis, nto nhelp nassess nthe nborrower‘s
ncredit-worthiness.
7. Financial nstatements, nno nmatter nhow nprepared, ndo nnot ndirectly naffect nthe
neconomic nworth nof nan nentity.
8. The nFederal nAccounting nStandards nAdvisory nBoard‘s nstandards ndo nnot napply nto
nthe nfederal nDepartment nof nthe nTreasury.
9. Governments nmay nbe nsubject nto nthe nsame npressures nthat nled nto naccounting
nscandals nlike nEnron.
10. The nGovernmental nAccounting nStandards nBoard nestablishes ngenerally naccepted
naccounting nprinciples nfor nall nstate nand nlocal ngovernments nand nall nnot-for-profit
nentities.
Granof nTest nBank Page n1
nChapter n1
,MULTIPLE nCHOICE n(CHAPTER n1)
1. A nprimary ncharacteristic nthat ndistinguishes ngovernments nfrom nbusinesses nis
a) The nneed nto ngenerate nrevenues nequal nto nor nin nexcess nof nexpenditures/expenses.
b) The nimportance nof nthe nbudget nin nthe ngoverning nprocess.
c) The nneed nto nprovide ngoods nor nservices.
d) The ncorrelation nbetween nrevenues ngenerated nand ndemand nfor ngoods nor nservices.
2. A nprimary ncharacteristic nthat ndistinguishes nnot-for-profit nentities nfrom nbusinesses nis
a) The nneed nto ngenerate nrevenues nequal nto nor nin nexcess nof nexpenditures/expenses.
b) The nimportance nof nthe nbudget nin nthe ngoverning nprocess.
c) The nneed nto nprovide ngoods nor nservices.
d) The ncorrelation nbetween nrevenues ngenerated nand ndemand nfor ngoods nor nservices.
3. Which nof nthe nfollowing ncharacteristics ndistinguishes na ngovernment nor nnot-for-
profit nentity nfrom na nbusiness?
a) There nis nalways na ndirect nlink nbetween nrevenues ngenerated nand
nexpenditures/expenses nincurred.
b) Capital nassets nare nused nto nproduce nrevenues nand nsave ncosts.
c) Revenues nare nalways nindicative nof ndemand nfor ngoods nand nservices.
d) The nmission nof nthe nentity nwill ndetermine nthe ngoods nor nservices nprovided.
4. The nmost nsignificant nfinancial ndocument nprovided nby na ngovernment nis nthe
a) Balance nsheet.
b) Operating nstatement.
c) Operating nbudget.
d) Cash nflow nstatement.
5. Which nof nthe nfollowing nstatements nis ntrue?
a) Governments nmay nengage nin nactivities nsimilar nto nactivities nengaged nin nby
nfor-profit nentities.
b) There nare na nlimited nnumber nof ndifferent ntypes nof ngovernments.
c) All ngovernments nengage nin nthe nsame nactivities.
d) Managers nmay nhave na nlong-term nfocus nand nthereby nsacrifice nthe nshort-term
nliquidity nof nthe nentity.
6. Which nof nthe nfollowing nactivities nis nNOT nan nactivity nin nwhich na ngovernment nmight nengage?
a) Selling nelectric npower.
b) Operating na ngolf ncourse.
c) Operating na nbookstore.
d) All nof nthe nabove nare nactivities nthat nmight nbe ncarried nout nby na ngovernment.
7. In nwhich nof nthe nfollowing nactivities nis na nnot-for-profit nentity nleast nlikely nto nengage?
a) Providing neducational nservices.
b) Providing nhealth-care nservices.
c) Providing nfor nterrorism ndefense.
d) Retail nsales nof ncookies.
Granof nTest nBank Page n2
nChapter n1
, 8. Which nof nthe nfollowing ncan nbe naffected nby nGAAP?
a) Legal nability nto nissue nbonds.
b) Ability nto nbalance nthe nbudget.
c) Amount nreported nas nemployee npension nplan ncontributions.
d) Claims nand njudgments nsettled.
9. Which nof nthe nfollowing ncharacteristics nis nunique nto
ngovernments?
a) The nability nto nhave nactivities nfinanced nwith ntax-exempt ndebt.
b) The npower nto nimpose nfees.
c) The nability nto nissue ntax-exempt ndebt.
d) The nability nto nhave nactivities nfinanced nby nFederal ngrants.
10. To nobtain na ncomprehensive nunderstanding nof na ngovernment‘s nfiscal nhealth, na
nfinancial nanalyst nshould nobtain nan nunderstanding nof nwhich nof nthe nfollowing?
a) All nthe nresources nowned nby nthe ngovernment.
b) All nthe nresources nthat nmay nbe nsummoned nby nthe ngovernment.
c) Demographic ndata nabout nthe nresidents nserved nby nthe ngovernment.
d) All nof nthe nabove.
11. Which nof nthe nfollowing nis ncommon nto nboth ngovernments nand nnot-for-profit
nentities nbut ndistinguishes nthese nentities nfrom nfor-profit nentities?
a) The nbudget nis na nlegal, nfinancial ndocument.
b) Revenues nare nusually nindicative nof ndemand nfor ngoods nor nservices.
c) There nis ndirect nmatching nof nrevenues nand nexpenses.
d) There nare nno ndefined nownership ninterests.
12. Which nof nthe nfollowing nis nNOT na npurpose nof nexternal nfinancial nreporting nby ngovernments?
External nfinancial nreports nshould nallow nusers nto
a) Assess nfinancial ncondition.
b) Compare nactual nresults nwith nthe nbudget.
c) Assess nthe nability nof nelected nofficials nto neffectively nmanage npeople.
d) Evaluate nefficiency nand neffectiveness.
13. Which nof nthe nfollowing nis nNOT na nreason nwhy nusers nneed ngovernment nand
nnot-for-profit nexternal nfinancial nstatements?
a) To ndetermine nthe nability nof nthe nentity nto nmeet nits nobligations.
b) To ndetermine nthe nability nof nthe nentity nto ncontinue nto nprovide nservices.
c) To npredict nfuture nfiscal nsolvency.
d) To nevaluate nthe noverall nprofitability nof nthe nentity.
14. Users nof ngovernment nfinancial nstatements nshould nbe ninterested nin
ninformation nabout ncompliance nwith nlaws nand nregulations nfor nwhich nof nthe
nfollowing nreasons?
a) To ndetermine nif nthe ngovernment nhas ncomplied nwith nbond ncovenants.
b) To ndetermine nif nthe ngovernment nhas ncomplied nwith ntaxing nlimitations.
c) To ndetermine nif nthe ngovernment nhas ncomplied nwith ndonor nrestrictions non nthe nuse nof nfunds.
d) To ndetermine nall nof nthe nabove.
Granof nTest nBank Page n3
nChapter n1
, 15. Which nof nthe nfollowing nis nNOT ngenerally nconsidered na nmain nuser nof ngovernment
nand nnot-for- nprofit nentity nexternal nfinancial nstatements?
a) Investors nand ncreditors.
b) Taxpayers.
c) Donors.
d) Internal nmanagers.
16. Which nof nthe nfollowing nis na nprobable nuse na ndonor nwould nmake nof nthe
nexternal nfinancial nstatements nof na nnot-for-profit nentity?
a) To ndetermine nthe nproportion nof nentity nresources ndirected nto nprograms nas
nopposed nto nfund- nraising.
b) To ndetermine nthe ncreditworthiness nof nthe nentity nfor ninvestment npurposes.
c) To ndetermine nthe nsalaries npaid nto nall nemployees nof nthe nentity.
d) To ndetermine nthe nbudget nof nthe nentity.
17. A nregulatory nagency nwould nuse nthe nexternal nfinancial nstatements nof na nlocal
ngovernment nfor nwhich nof nthe nfollowing npurposes?
a) To nensure nthat nthe nentity nis nspending nand nreceiving nresources nin naccordance
nwith nlaws, nregulations nor npolicies.
b) To ndetermine nhow nresources nshould nbe nallocated.
c) To nexercise ngeneral noversight nresponsibility.
d) To ndo nall nof nthe nabove.
18. Which nof nthe nfollowing nconstituency ngroups nwould nbe nmost nlikely nto nevaluate
ngovernment nfinancial nstatements nto ndetermine nlikely nareas nin nwhich nto nachieve
ncost-savings?
a) Creditors.
b) Union nofficials nrepresenting nthe ngovernment‘s nemployees.
c) Federal nagencies nthat nprovide npurpose-restricted ngrants.
d) Students nof ngovernment naccounting.
19. Which nof nthe nfollowing nobjectives nis nconsidered nthe ncornerstone nof nfinancial
nreporting nby na nstate nor nlocal ngovernment?
a) Accountability.
b) Budgetary ncompliance.
c) Interperiod nequity.
d) Service nefforts nand naccomplishments.
20. Which nof nthe nfollowing nis nan nobjective nof nfinancial nreporting nby nstate nand nlocal
ngovernments nas nestablished nby nthe nGASB? nFinancial nreporting nshould nassist nusers
nin
a) Assessing nthe nmanagement nskills nof ntop nmanagement.
b) Determining nif ncurrent-period nrevenues nwere nsufficient nto npay nfor ncurrent-period nservices.
c) Evaluating nthe ncash nmanagement noperations nof nthe ngovernment nfor nthe nyear.
d) Assessing nwhether nthe ngovernment nprovided nappropriate nservices nto nits
nconstituents nin nthe ncurrent nyear.
Granof nTest nBank Page n4
nChapter n1
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 Prose1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now