Question 1

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

Accepted Answer

A)  Cost allocations. 
B)  Excess executive compensation. 
C)  Organizations operating out of their tax-exempt purpose. 
D)  All the above. 
A)  Cost allocations. 
B)  Excess executive compensation. 
C)  Organizations operating out of their tax-exempt purpose. 
D)  All the above.

Question 3

What is the purpose of the Unrelated Business Income Tax?

Accepted Answer

Not-for-profits performing business acti

Question 4

Government Auditing Standards identify which of the following categories of professional engagements?

Accepted Answer

A)  Financial audits, and performance audits 
B)  Financial audits, agreed-upon procedures and performance audits 
C)  Financial audits, attestation engagements, performance audits, and nonaudit services 
D)  Financial audits 
A)  Financial audits, and performance audits 
B)  Financial audits, agreed-upon procedures and performance audits 
C)  Financial audits, attestation engagements, performance audits, and nonaudit services 
D)  Financial audits

Question 5

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

Accepted Answer

Service Efforts and Accomplishments repo

Question 6

Tax exempt entities are not allowed to make contributions to political campaigns or they may loose their tax exempt status.

Accepted Answer

A) True 
 B)False

Question 7

List four sources of income that is not subject to the unrelated business income tax:

Accepted Answer

Any four of the following: (a)The busine

Question 8

Which of the following is not a governmental audit opinion unit?

Accepted Answer

A)  Governmental activities. 
B)  Business-type activities. 
C)  Each Major Fund. 
D)  All of the above are opinion units. 
A)  Governmental activities. 
B)  Business-type activities. 
C)  Each Major Fund. 
D)  All of the above are opinion units.

Question 9

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 10

A tax-exempt organization must pay income taxes on income generated from trade or business activities unrelated to the entity's tax-exempt purposes.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The GASB has issued standards for Service Efforts and Accomplishments Reporting.

Accepted Answer

A) True 
 B)False

Question 13

Governmental Audit Reports are due nine months after the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 14

To apply for tax-exempt status,a non-profit organization must file:

Accepted Answer

A)  IRS Form 501(c) (3) 
B)  IRS Form 990 
C)  IRS Form 1023 
D)  None of the above 
A)  IRS Form 501(c) (3) 
B)  IRS Form 990 
C)  IRS Form 1023 
D)  None of the above

Question 15

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fundraising expense,$2,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

Accepted Answer

A)  43% 
B)  39% 
C)  17% 
D)  70% 
A)  43% 
B)  39% 
C)  17% 
D)  70%

Question 16

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 17

All of the following are differences between private sector auditing and governmental auditing except:

Accepted Answer

A)  The public availability of audit reports. 
B)  Testing of compliance with laws and regulations. 
C)  Governmental audits require auditor knowledge of government accounting and auditing. 
D)  All of the above are differences between private sector auditing and governmental auditing. 
A)  The public availability of audit reports. 
B)  Testing of compliance with laws and regulations. 
C)  Governmental audits require auditor knowledge of government accounting and auditing. 
D)  All of the above are differences between private sector auditing and governmental auditing.

Question 18

The IRS announced that it considers tax-exempt organizations to be one of its four highest enforcement priorities.

Accepted Answer

A) True 
 B)False

Question 19

The term "opinion unit" refers to which of the following?

Accepted Answer

A)  A state or local government together with its component units 
B)  A level of reporting of a government that requires a separate materiality level 
C)  A division of a CPA firm 
D)  One of the four statements required in the second paragraph of an unqualified audit opinion 
A)  A state or local government together with its component units 
B)  A level of reporting of a government that requires a separate materiality level 
C)  A division of a CPA firm 
D)  One of the four statements required in the second paragraph of an unqualified audit opinion

Question 20

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996?
 Distinguish between Type A and Type B programs.

Accepted Answer

A major program is one that is selected

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations.

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

What is the purpose of the Unrelated Business Income Tax?

Government Auditing Standards identify which of the following categories of professional engagements?

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

Tax exempt entities are not allowed to make contributions to political campaigns or they may loose their tax exempt status.

List four sources of income that is not subject to the unrelated business income tax:

Which of the following is not a governmental audit opinion unit?

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

A tax-exempt organization must pay income taxes on income generated from trade or business activities unrelated to the entity's tax-exempt purposes.

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

The GASB has issued standards for Service Efforts and Accomplishments Reporting.

Governmental Audit Reports are due nine months after the end of the fiscal year.

To apply for tax-exempt status,a non-profit organization must file:

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fundraising expense,$2,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

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

All of the following are differences between private sector auditing and governmental auditing except:

The IRS announced that it considers tax-exempt organizations to be one of its four highest enforcement priorities.

The term "opinion unit" refers to which of the following?

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters

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

Service Efforts and Accomplishments Reporting is mandatory for not-for-profit organizations.

Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?

What is the purpose of the Unrelated Business Income Tax?

Government Auditing Standards identify which of the following categories of professional engagements?

Why is Service Efforts and Accomplishments reporting especially important for governmental and not-for-profit entities?

Tax exempt entities are not allowed to make contributions to political campaigns or they may loose their tax exempt status.

List four sources of income that is not subject to the unrelated business income tax:

Which of the following is not a governmental audit opinion unit?

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

A tax-exempt organization must pay income taxes on income generated from trade or business activities unrelated to the entity's tax-exempt purposes.

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

The GASB has issued standards for Service Efforts and Accomplishments Reporting.

Governmental Audit Reports are due nine months after the end of the fiscal year.

To apply for tax-exempt status,a non-profit organization must file:

The Museum of Creative Arts had the following expenses: $5,000 of membership development expense,$3,000 of Fundraising expense,$2,000 of Instructional Classes expense,and $1,500 of general and administrative expense.What is the program expense ratio (rounded)?

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

All of the following are differences between private sector auditing and governmental auditing except:

The IRS announced that it considers tax-exempt organizations to be one of its four highest enforcement priorities.

The term "opinion unit" refers to which of the following?

What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996? Distinguish between Type A and Type B programs.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Financial Reporting by the Federal Government

Filters