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

The GASB is under the oversight of:

Which of the following funds is considered a Fiduciary Fund?

The GASB does not require supplementary information to be reported with its financial statements even if it is essential to establish appropriate context for the financial statements and notes.

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.

State and local governments may use twelve different fund types.

Depreciation on capital assets is included as an expense in the Statement of Activities in the governmental fund statements.

The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

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

The Financial Accounting Standards Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Level "A" GAAP for Cook County Hospital,a public hospital,would be established by the:

Fund-basis statements are presented for three categories of government activities: governmental,proprietary,and fiduciary.

Permanent funds can be either a governmental fund or a fiduciary fund where only income on donated assets may be spent.

Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

The FASB,GASB,and FASAB have each established a hierarchy of GAAP for financial statements preparers? List one category A and one category B item for each organization.

The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government and it is the intent of the government to measure revenues,expenses and changes in net position.

Which fund category must change from modified accrual to accrual basis when preparing government-wide financial statements?

Governmental-type activities fund statements must use accrual basis when preparing government-wide financial statements.

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

FASAB,GASB and FASB standards are set forth primarily in documents called statements.