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

An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes.

What are the four objectives that should be followed with respect to federal financial reporting according to SFFAC #1 as issued by the FASAB?

Which of the following characteristics would not define an organization as governmental?

The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal,state,and local.

A city government collects local option sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children.Which fund should account for the receipt of the sales taxes?

Governmental funds include:

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of long-term debt.

Which of the following best describes how many funds a government should use?

Which of the following is most correct with regard to Management's Discussion and Analysis (MD&A)?

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

The government-wide statements and the fund statements for proprietary funds and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting.

Long-term debt that is to be paid with tax revenues is reported both in the government-wide statements and in the governmental fund statements

Long-term debt of a governmental unit would be reported in the:

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

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

The GASB recently published a white paper which identifies five environmental differences between governments and for-profit enterprises.

GASB Concepts Statement No.3,Communication Methods in General Purpose External Financial Reports that Contain Basic Financial Statements,states that

Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?

Under GASB Statement 34,modified accrual accounting would be found in the:

The ______ Funds are used to account for situations in which the government is acting as a collecting/disbursing agent.