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

The FASB sets accounting and financial reporting standards for governmentally related not-for-profit organizations, such as colleges and universities, health care entities, museums, libraries, and performing arts organizations that are owned or controlled by governments.

Comparison of the legally approved budget with actual results of the General Fund is included as part of required supplementary information in the CAFR.

The Financial Accounting Foundation FAF) has oversight over the GASB but not the FASB.

A fund represents part of the activities of an organization which is separated from other activities in the accounting records to more easily demonstrate compliance with legal restrictions or limitations.

Which of the following characteristics would not define an organization as governmental?

GASB and FASB Concept Statements establish accounting standards that must be complied with to receive an unqualified audit opinion.

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

Long-term debt of a governmental unit would be reported in the:

The GASB recently published a white paper which identifies five environmental differences between governments and for-profit enterprises.

According to FASB standards relating to Budgetary Accounting, the accounting system should provide the basis for appropriate budgetary control.

The GASB sets accounting standards for all of the following except:

The Financial Accounting Standards Board FASB is the standard setting organization for which of the following reporting organizations?

The only objective of the Governmental Accounting Standards Board is to help users determine compliance with finance-related laws, rules, and regulations.

Governmental funds include:

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 general fund classified under governmental funds…

A city government collects local sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children. Which fund should account for the receipt of the sales taxes?

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

An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes.

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