Question 1

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

Accepted Answer

A)  To assist users in assessing the adequacy of systems and controls. 
B)  To assist users in assessing financial condition and results of operations. 
C)  To assist financial report users in comparing actual financial results with the legally adopted budget. 
D)  To assist in determining compliance with finance-related laws,rules,and regulations.

Question 2

Which of the following statements is prepared by all not-for-profit organizations?

Accepted Answer

A)  Statement of financial position. 
B)  Statement of functional expenses. 
C)  Statement of revenues,expenses,and changes in net position. 
D)  Both A and B.

Question 3

The body that has been established to recommend accounting and financial reporting standards for the federal government is the

Accepted Answer

A)  Financial Accounting Standards Board (FAS
B) . 
B)  Governmental Accounting Standards Board (GAS
B) . 
C)  Government Accountability Office (GAO). 
D)  Federal Accounting Standards Advisory Board (FASA
B) .

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

A statistical section should be included in

Accepted Answer

A)  A comprehensive annual financial report (CAFR). 
B)  The basic financial statements. 
C)  The notes to the financial statements. 
D)  Required supplementary information,other than MD&A.

Question 6

Describe the difference between a comprehensive annual financial report (CAFR)and the GASB financial reporting model for state and local governments.

Accepted Answer

The answer of Describe the difference between a comprehensive annual...

Question 7

Which of the following organizations issue standards that are intended for both internal and external users of financial information?

Accepted Answer

A)  Federal Accounting Standards Advisory Board. 
B)  Governmental Accounting Standards Board. 
C)  Financial Accounting Standards Board. 
D)  American Institute of CPAs.

Question 8

The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for

Accepted Answer

A)  All not-for-profit organizations that are nongovernmental and business entities. 
B)  All special purpose governments. 
C)  All not-for-profit organizations. 
D)  All federal government agencies.

Question 9

On what should the government-wide financial statements report?

Accepted Answer

A)  Net position and results of financial operations of the government as a whole. 
B)  Fiscal accountability. 
C)  The cost of government services. 
D)  Budgetary compliance.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The governmental fund financial statements are intended to report on fiscal accountability.

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Citizens. 
B)  Managers and administrators. 
C)  Employees. 
D)  Special interest groups.

Question 14

Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR),but not in the minimum requirements for general purpose financial reporting specified by GASB standards?

Accepted Answer

A)  Management's discussion and analysis (MD&
A) . 
B)  Government-wide financial statements. 
C)  Notes to the financial statements. 
D)  Combining and individual fund financial statements.

Question 15

Which of the following standard-setting bodies requires a management's discussion and analysis as a part of the financial report?

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  FASAB. 
D)  Both A and C.

Question 16

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

Accepted Answer

The answer of Explain in your own words why accountability...

Question 17

The Governmental Accounting Standards Board (GASB)is the body authorized to establish accounting principles for all state and local governments,both general purpose and special purpose.

Accepted Answer

A) True 
 B)False

Question 18

Explain the concepts fiscal and operational accountability and the basis of accounting used to capture each concept.

Accepted Answer

The answer of Explain the concepts fiscal and operational accountability...

Question 19

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:

Accepted Answer

A)  Introductory section. 
B)  Management's discussion and analysis section. 
C)  Statistical section. 
D)  Financial section.

Question 20

Explain the essential differences between general purpose and special purpose governments and give several examples of each.

Accepted Answer

The answer of Explain the essential differences between general purpose...

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

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

Which of the following statements is prepared by all not-for-profit organizations?

The body that has been established to recommend accounting and financial reporting standards for the federal government is 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.

A statistical section should be included in

Describe the difference between a comprehensive annual financial report (CAFR)and the GASB financial reporting model for state and local governments.

Which of the following organizations issue standards that are intended for both internal and external users of financial information?

The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for

On what should the government-wide financial statements report?

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

The governmental fund financial statements are intended to report on fiscal accountability.

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.

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

Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR) ,but not in the minimum requirements for general purpose financial reporting specified by GASB standards?

Which of the following standard-setting bodies requires a management's discussion and analysis as a part of the financial report?

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

The Governmental Accounting Standards Board (GASB)is the body authorized to establish accounting principles for all state and local governments,both general purpose and special purpose.

Explain the concepts fiscal and operational accountability and the basis of accounting used to capture each concept.

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:

Explain the essential differences between general purpose and special purpose governments and give several examples of each.