Question 1

The program expense ratio is calculated as follows: Total expenses / Program service expenses

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would be a financial audit (or a part of a financial audit) under the Government Auditing Standards?

Accepted Answer

A)  An audit expressing an opinion on the basic financial statements of a state or local government audit 
B)  An examination to determine whether purchasing procedures are appropriately designed to assure program supplies meet standards 
C)  Both of the above 
D)  Neither of the above 
A)  An audit expressing an opinion on the basic financial statements of a state or local government audit 
B)  An examination to determine whether purchasing procedures are appropriately designed to assure program supplies meet standards 
C)  Both of the above 
D)  Neither of the above

Question 3

Which organization promulgates the Government Auditing Standards?

Accepted Answer

A)  The American Institute of Certified Public Accountants 
B)  The U.S. Office of Management and Budget 
C)  The Securities and Exchange Commission 
D)  The U.S. Government Accountability Office 
A)  The American Institute of Certified Public Accountants 
B)  The U.S. Office of Management and Budget 
C)  The Securities and Exchange Commission 
D)  The U.S. Government Accountability Office

Question 4

Service Efforts and Accomplishments Reporting is best completed by using

Accepted Answer

A)  Standard single measure to evaluate or present information 
B)  Variety of measures which vary from year to year in order to evaluate and present information 
C)  Only the information that is favorable to the organization 
D)  Variety of measures which are consistent from year to year 
A)  Standard single measure to evaluate or present information 
B)  Variety of measures which vary from year to year in order to evaluate and present information 
C)  Only the information that is favorable to the organization 
D)  Variety of measures which are consistent from year to year

Question 5

Which of the following would be an example of an attestation engagement?

Accepted Answer

A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above 
A)  Report on cost under contract 
B)  Report on prospective financial information 
C)  Report on internal controls 
D)  All of the above

Question 6

All of the following are examples of service outputs, except:

Accepted Answer

A)  Enrollment increases 
B)  Dropout rates 
C)  The number of gifted or alternative programs 
D)  Degrees conferred 
A)  Enrollment increases 
B)  Dropout rates 
C)  The number of gifted or alternative programs 
D)  Degrees conferred

Question 7

The purpose of the Unrelated Business Income Tax is to eliminate advantages that tax-exempt organizations have over commercial enterprises providing goods or services for sale.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true concerning tax exempt organizations with unrelated business income?

Accepted Answer

A)  They may deduct all expenses in computing their tax liability 
B)  They may deduct the first $1,000 of unrelated business income 
C)  They file a 1040-NFP with the IRS 
D)  They must include investment income in computing their tax liability 
A)  They may deduct all expenses in computing their tax liability 
B)  They may deduct the first $1,000 of unrelated business income 
C)  They file a 1040-NFP with the IRS 
D)  They must include investment income in computing their tax liability

Question 9

The Museum of Creative Arts had the following expenses: $4,400 of membership development expense, $2,200 of Fundraising expense, $1,600 of Instructional Classes expense and $1,300 of general and administrative expense. What is the program expense ratio (rounded)?

Accepted Answer

A)  83% 
B)  17% 
C)  49% 
D)  30% 
A)  83% 
B)  17% 
C)  49% 
D)  30%

Question 10

The program expense ratio is calculated as Program service expenses + supporting service expenses / Total expenses

Accepted Answer

A) True 
 B)False

Question 11

Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax (UBIT)?

Accepted Answer

A)  Majority of labor is performed by paid employees 
B)  The business is carried on regularly 
C)  It is operated for a profit 
D)  Merchandise is donated 
A)  Majority of labor is performed by paid employees 
B)  The business is carried on regularly 
C)  It is operated for a profit 
D)  Merchandise is donated

Question 12

Which of the following is true regarding the Single Audit Act and its amendments?

Accepted Answer

A)  All governmental entities with expenditures of federal funds in excess of $500,000 must have a single audit, if more than one program exists 
B)  An audit must be designed to cover 50 percent of federal funds expended, in all cases 
C)  Both of the above 
D)  Neither of the above 
A)  All governmental entities with expenditures of federal funds in excess of $500,000 must have a single audit, if more than one program exists 
B)  An audit must be designed to cover 50 percent of federal funds expended, in all cases 
C)  Both of the above 
D)  Neither of the above

Question 13

A measure of performance that expresses how much an organization expends in raising the dollar of donations.

Accepted Answer

A)  Fundraising efficiency 
B)  Program expense ratio 
C)  Working capital ratio 
D)  None of the above 
A)  Fundraising efficiency 
B)  Program expense ratio 
C)  Working capital ratio 
D)  None of the above

Question 14

Which of the following is not part of a financial audit?

Accepted Answer

A)  Forming judgments about internal controls 
B)  Testing compliance with laws and regulations 
C)  Assessing the degree to which program objectives have been met 
D)  All of the above 
A)  Forming judgments about internal controls 
B)  Testing compliance with laws and regulations 
C)  Assessing the degree to which program objectives have been met 
D)  All of the above

Question 15

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 16

Match between columns
                        Premises: Actual expenditures/budgeted expenditures-General Fund
Governmental revenues per capita
Unreserved fund balance/revenues-General Fund
City management's plans for the future
Unrestricted net assets-governmental activities/general government expenses-governmental activities
Cash expended on capital assets- enterprise activities
Interest coverage-revenue bonds
Assessed value of property
Total expenses for interest for a major enterprise fund
Information regarding balances for a nonmajor enterprise fund
Debt limit and debt margin
Unfunded pension liability for the government as a whole
Summary information regarding overall government financial performance for the year
Schedule of direct and overlapping debt
Net debt per capita
Operating ratio-enterprise funds
Cash balances in a pension trust fund
Debt service/total governmental revenues
Information regarding actual and planned maintenance of infrastructure, when the modified approach is used
Net debt to fair value of property

Accepted Answer

The Answer of Combining and individual fund statements (Other Supplementary is...

Question 17

When computing Unrelated Business Income Tax, charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

Accepted Answer

A) True 
 B)False

Question 18

The purpose of audits conducted under the Single Audit Act is to provide assurance that federal and state funds are expended in accordance with grant agreements and with financial management and other standards promulgated by the federal government.

Accepted Answer

A) True 
 B)False

Question 19

The document often relied on for financial analysis by investors and creditors for bonds in the secondary market is:

Accepted Answer

A)  The official statement issued by the government issuing the bonds 
B)  The comprehensive annual financial report 
C)  An analysis prepared by the government's auditor 
D)  None of the above 
A)  The official statement issued by the government issuing the bonds 
B)  The comprehensive annual financial report 
C)  An analysis prepared by the government's auditor 
D)  None of the above

Question 20

In order to compute the interest coverage on revenue bonds, one would look in the CAFR at the:

Accepted Answer

A)  Government-wide Statement of Activities 
B)  Enterprise funds Statement of Revenues, Expenses and Changes in Net Assets 
C)  Budgetary Comparison Schedule 
D)  Government-wide Statement of Activities. 
A)  Government-wide Statement of Activities 
B)  Enterprise funds Statement of Revenues, Expenses and Changes in Net Assets 
C)  Budgetary Comparison Schedule 
D)  Government-wide Statement of Activities.

The program expense ratio is calculated as follows: Total expenses / Program service expenses

Which of the following would be a financial audit (or a part of a financial audit) under the Government Auditing Standards?

Which organization promulgates the Government Auditing Standards?

Service Efforts and Accomplishments Reporting is best completed by using

Which of the following would be an example of an attestation engagement?

All of the following are examples of service outputs, except:

The purpose of the Unrelated Business Income Tax is to eliminate advantages that tax-exempt organizations have over commercial enterprises providing goods or services for sale.

Which of the following is true concerning tax exempt organizations with unrelated business income?

The Museum of Creative Arts had the following expenses: $4,400 of membership development expense, $2,200 of Fundraising expense, $1,600 of Instructional Classes expense and $1,300 of general and administrative expense. What is the program expense ratio (rounded)?

The program expense ratio is calculated as Program service expenses + supporting service expenses / Total expenses

Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax (UBIT)?

Which of the following is true regarding the Single Audit Act and its amendments?

A measure of performance that expresses how much an organization expends in raising the dollar of donations.

Which of the following is not part of a financial audit?

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

When computing Unrelated Business Income Tax, charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

The purpose of audits conducted under the Single Audit Act is to provide assurance that federal and state funds are expended in accordance with grant agreements and with financial management and other standards promulgated by the federal government.

The document often relied on for financial analysis by investors and creditors for bonds in the secondary market is:

In order to compute the interest coverage on revenue bonds, one would look in the CAFR at the:

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Filters

Exam 13: Auditing, Tax-Exempt Organizations, and Evaluating Performance

The program expense ratio is calculated as follows: Total expenses / Program service expenses

Which of the following would be a financial audit (or a part of a financial audit) under the Government Auditing Standards?

Which organization promulgates the Government Auditing Standards?

Service Efforts and Accomplishments Reporting is best completed by using

Which of the following would be an example of an attestation engagement?

All of the following are examples of service outputs, except:

The purpose of the Unrelated Business Income Tax is to eliminate advantages that tax-exempt organizations have over commercial enterprises providing goods or services for sale.

Which of the following is true concerning tax exempt organizations with unrelated business income?

The Museum of Creative Arts had the following expenses: $4,400 of membership development expense, $2,200 of Fundraising expense, $1,600 of Instructional Classes expense and $1,300 of general and administrative expense. What is the program expense ratio (rounded)?

The program expense ratio is calculated as Program service expenses + supporting service expenses / Total expenses

Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax (UBIT)?

Which of the following is true regarding the Single Audit Act and its amendments?

A measure of performance that expresses how much an organization expends in raising the dollar of donations.

Which of the following is not part of a financial audit?

Governments and other nonprofits receiving federal funds follow Governmental Auditing Standards and do not have to comply with AICPA Statements of Auditing Standards.

When computing Unrelated Business Income Tax, charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

The purpose of audits conducted under the Single Audit Act is to provide assurance that federal and state funds are expended in accordance with grant agreements and with financial management and other standards promulgated by the federal government.

The document often relied on for financial analysis by investors and creditors for bonds in the secondary market is:

In order to compute the interest coverage on revenue bonds, one would look in the CAFR at the:

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Filters