Question 1

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

Accepted Answer

A)  Statement of financial position. 
B)  Statement of functional expenses. 
C)  Statement of revenues, expenses, and changes in net position. 
D)  Both A and B. 
A)  Statement of financial position. 
B)  Statement of functional expenses. 
C)  Statement of revenues, expenses, and changes in net position. 
D)  Both A and B. A

Question 2

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

Accepted Answer

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. 
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. B

Question 3

The FASB requires that a statement of functional expenses be prepared by which of the following entities?

Accepted Answer

A)  Colleges and universities. 
B)  Health care entities. 
C)  Voluntary health and welfare entities. 
D)  Religious entities. 
A)  Colleges and universities. 
B)  Health care entities. 
C)  Voluntary health and welfare entities. 
D)  Religious entities. C

Question 4

Identify and explain the characteristics that distinguish government and not-for-profit entities from business entities.

Accepted Answer

Governmental and not-for-profit entities

Question 5

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

Accepted Answer

By definition,the comprehensive annual f

Question 6

In your own words state the primary uses the GASB believes external users have for financial reports of state and local governments.For contrast,state the uses the FASB believes external users have for the financial reports of not-for-profit organizations.

Accepted Answer

External users of government financial r

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would typically not be included in the introductory section of a comprehensive annual financial report?

Accepted Answer

A)  Title and contents page. 
B)  Letter of transmittal. 
C)  A description of the government. 
D)  Summary of the government's current financial position and results of financial activities. 
A)  Title and contents page. 
B)  Letter of transmittal. 
C)  A description of the government. 
D)  Summary of the government's current financial position and results of financial activities.

Question 9

Which of the following sections is not considered a part of a federal agency's performance and accountability report?

Accepted Answer

A)  Basic financial statements. 
B)  Annual performance report. 
C)  Statistical section. 
D)  Management's discussion and analysis. 
A)  Basic financial statements. 
B)  Annual performance report. 
C)  Statistical section. 
D)  Management's discussion and analysis.

Question 10

Describe the comprehensive annual financial report (CAFR).What are the sections of the report and which components of the organization should it include? Is a CAFR required?

Accepted Answer

The CAFR is recommended,but not required

Question 11

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

Accepted Answer

A)  Citizens. 
B)  Managers and administrators. 
C)  Employees. 
D)  Special interest groups. 
A)  Citizens. 
B)  Managers and administrators. 
C)  Employees. 
D)  Special interest groups.

Question 12

Identify and briefly explain the four sections of the performance and accountability report (PAR)that the Office of Management and Budget requires major federal departments and agencies to prepare.

Accepted Answer

The four parts and an explanation of the

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

On what should the governmental fund financial statements report?

Accepted Answer

A)  Net position and results of financial operations of the government as a whole. 
B)  Fiscal accountability. 
C)  Operational accountability. 
D)  Cost of government services. 
A)  Net position and results of financial operations of the government as a whole. 
B)  Fiscal accountability. 
C)  Operational accountability. 
D)  Cost of government services.

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

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. 
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.

Question 18

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

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  FASAB. 
D)  Both A and C. 
A)  GASB. 
B)  FASB. 
C)  FASAB. 
D)  Both A and C.

Question 19

A statistical section should be included in

Accepted Answer

A)  A comprehensive annual financial report (CAFR). 
B)  The basic financial statements. 
C)  The notes to the financial statements. 
D)  Required supplementary information, other than MD&A. 
A)  A comprehensive annual financial report (CAFR). 
B)  The basic financial statements. 
C)  The notes to the financial statements. 
D)  Required supplementary information, other than MD&A.

Question 20

One of the minimum requirements for general purpose external financial reporting by governments is:

Accepted Answer

A)  Management's discussion and analysis (MD&
A) . 
B)  Transmittal letter. 
C)  Combining and individual fund statements. 
D)  Statistical information. 
A)  Management's discussion and analysis (MD&
A) . 
B)  Transmittal letter. 
C)  Combining and individual fund statements. 
D)  Statistical information.

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

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

The FASB requires that a statement of functional expenses be prepared by which of the following entities?

Identify and explain the characteristics that distinguish government and not-for-profit entities from business entities.

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

In your own words state the primary uses the GASB believes external users have for financial reports of state and local governments.For contrast,state the uses the FASB believes external users have for the financial reports of not-for-profit organizations.

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

Which of the following would typically not be included in the introductory section of a comprehensive annual financial report?

Which of the following sections is not considered a part of a federal agency's performance and accountability report?

Describe the comprehensive annual financial report (CAFR).What are the sections of the report and which components of the organization should it include? Is a CAFR required?

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

Identify and briefly explain the four sections of the performance and accountability report (PAR)that the Office of Management and Budget requires major federal departments and agencies to prepare.

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.

On what should the governmental fund financial statements report?

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

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

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?

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

A statistical section should be included in

One of the minimum requirements for general purpose external financial reporting by governments is:

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activitiesagency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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

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

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

The FASB requires that a statement of functional expenses be prepared by which of the following entities?

Identify and explain the characteristics that distinguish government and not-for-profit entities from business entities.

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

In your own words state the primary uses the GASB believes external users have for financial reports of state and local governments.For contrast,state the uses the FASB believes external users have for the financial reports of not-for-profit organizations.

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

Which of the following would typically not be included in the introductory section of a comprehensive annual financial report?

Which of the following sections is not considered a part of a federal agency's performance and accountability report?

Describe the comprehensive annual financial report (CAFR).What are the sections of the report and which components of the organization should it include? Is a CAFR required?

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

Identify and briefly explain the four sections of the performance and accountability report (PAR)that the Office of Management and Budget requires major federal departments and agencies to prepare.

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.

On what should the governmental fund financial statements report?

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

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

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?

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

A statistical section should be included in

One of the minimum requirements for general purpose external financial reporting by governments is:

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activitiesagency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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