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

Which of the following is not an objective of financial reporting by state and local governments?

Which of the following statements is prepared by all not-for-profit organizations?

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

A characteristic common to governmental and not-for-profit organizations is operating purposes that are other than to provide goods or services at a profit or profit equivalent.

A statistical section should be included in

Describe the difference between a comprehensive annual financial report (CAFR)and the GASB financial reporting model for state and local governments.

Which of the following organizations issue standards that are intended for both internal and external users of financial information?

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

On what should the government-wide financial statements report?

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

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

The basis of accounting under which revenues are recognized when measurable and available for spending and expenses when resources are consumed is the modified accrual basis of accounting.

Which of the following groups is considered a primary user of a state or local government's general-purpose external financial statements?

Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR),but not in the minimum requirements for general purpose financial reporting specified by GASB standards?

Which of the following standard-setting bodies requires a management's discussion and analysis as a part of the financial report?

Explain in your own words why accountability is the cornerstone of all financial reporting in government.

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.

Explain the concepts fiscal and operational accountability and the basis of accounting used to capture each concept.

The section of the comprehensive annual financial report that presents tables and charts showing social and economic data in addition to financial trends,fiscal capacity,and operating information of the government is the:

Explain the essential differences between general purpose and special purpose governments and give several examples of each.