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

The Federal Accounting Standards Advisory Board (FASAB)recommends accounting principles and standards for the federal government and its agencies and departments.

Explain in your own words why accountability is the cornerstone of all financial reporting in government.

The organization that designates which authoritative standard setting body is responsible for establishing accounting and financial reporting standards for particular kinds of organizations (e.g.,federal,state,and local government,not-for-profit,and business organizations)is the:

The needs of users of governmental financial reports are the same as those of users of business financial reports.

The basis of accounting under which revenues are recognized when measurable and available for spending and expenses when resources are consumed is the modified accrual basis of accounting.

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

Members of the Governmental Accounting Standards Board are appointed by the:

A characteristic common to governmental and not-for-profit organizations is operating purposes that are other than to provide goods or services at a profit or profit equivalent.

Which of the following types of organizations may be subject to FASB jurisdiction?

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

Which of the following reconciliations is required in the basic financial statements of a state or local government?

Enterprise funds are primarily distinguished from internal service funds by the:

General purpose governments generally provide a wider range of services to their residents than do special purpose governments.

The section of the comprehensive annual financial report that presents tables and charts showing social and economic data in addition to financial trends,fiscal capacity,and operating information of the government is the:

Which of the following is not an objective of financial reporting by state and local governments?

Which of the following information should be included in the financial section of a comprehensive annual financial report?

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

The FASB,GASB,and FASAB all focus their standards on both internal and external financial reporting.

One of the minimum requirements for general purpose external financial reporting is (are):

The fund financial statements for governmental funds should include a