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

What are the five environmental factors relating to how governments are different from commercial businesses as described by GASB in a white paper entitled: Why Governmental Accounting and Financial Reporting Is - and Should Be - Different:

The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.

GASB Concepts Statement No. 3, defines methods of presenting information in financial reports. Concepts Statement No. 3 states that:

Proprietary funds use the:

Which of the following is not true with respect to a transaction that is nonexchange in nature?

Which of the following does not use the economic resources measurement focus?

Which of the following has established a "Hierarchy of GAAP":

Governmental funds use the:

Depreciation on capital assets is included as an expense in the Statement of Activities in the governmental fund statements.

According to GASB standards relating to Budgetary Accounting, an annual budget should be adopted by every governmental unit.

The information needs of government creditors are vastly different from their counterparts in the corporate world which necessitates different accounting rules.

The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities.

Identify the three basic fund categories, the funds that make up each of them, and the category's basis of accounting.