Question 1

According to GASB standards relating to Budgetary Accounting,budgetary comparisons are not required for proprietary funds.

Accepted Answer

A) True 
 B)False

Question 2

Governmental funds use the:

Accepted Answer

A)  economic resources measurement focus and accrual basis of accounting. 
B)  current financial resources measurement focus and accrual basis of accounting. 
C)  economic resources measurement focus and modified accrual basis of accounting. 
D)  current financial resources measurement focus and modified accrual basis of accounting

Question 3

Although certain supplementary information may not be required,if presented,it must follow GASB guidance regarding its format and content.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an environmental difference between governments and for-profit business enterprises?

Accepted Answer

A)  Relationship with stakeholders 
B)  Donor restricted assets 
C)  Fiduciary responsibilities 
D)  Both B and C

Question 5

Which of the following is not true regarding GASB Concepts Statement No.2,Service Efforts and Accomplishments Reporting:

Accepted Answer

A)  It encourages governments to experiment with reporting more complete information about an entity's performance than can be displayed in the traditional financial statements. 
B)  It outlines categories of information that might be reported. 
C)  It prescribes detailed standards governing the reporting of service efforts and accomplishments reporting. 
D)  None of the above, all are true.

Question 6

Provide the definition of the following terms as outlined by GASB Concepts Statement No.4,Elements of Financial Statements:
Assets
Liabilities
Net position
Inflows of resources
Outflows of resources

Accepted Answer

The answer of Provide the definition of the following terms...

Question 7

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

Accepted Answer

The answer of Identify the three basic fund categories,the funds...

Question 8

Which of the following is a governmental fund?

Accepted Answer

A)  Agency 
B)  Enterprise 
C)  Special revenue 
D)  Internal service

Question 9

Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

Accepted Answer

A) True 
 B)False

Question 10

A city government collects local option sales taxes legally restricted to pay for the construction of a new courthouse.Which fund should account for the receipt of the sales taxes?

Accepted Answer

A)  Special revenue fund 
B)  Capital projects fund 
C)  Private-purpose trust fund 
D)  General fund

Question 11

FASB sets the reporting standards for private and public not-for-for profits

Accepted Answer

A) True 
 B)False

Question 12

The _______ sets the accounting and financial reporting standards for both state and local governments and public not-for-profits.

Accepted Answer

A)  FASAB 
B)  FASB 
C)  GASB 
D)  AICPA

Question 13

The GASB requires supplementary information to be reported with its financial statements if it is essential to establish appropriate context for the financial statements and notes.

Accepted Answer

A) True 
 B)False

Question 14

State and local governmental funds are organized into three categories including:

Accepted Answer

A)  governmental, proprietary, and restricted 
B)  proprietary, fiduciary, and restricted 
C)  governmental, fiduciary, and restricted 
D)  governmental, proprietary, and fiduciary

Question 15

Under the modified accrual basis of accounting,revenues should be recognized when they are:

Accepted Answer

A)  authorized by the budget ordinance. 
B)  realizable and earned. 
C)  measurable and available to finance expenditures of the current period. 
D)  realized through collection.

Question 16

Which of the following is true regarding fund classifications?

Accepted Answer

A)  Governmental funds include the General, special revenue, debt service, capital projects, and permanent. 
B)  Proprietary funds include enterprise, internal service, and private-purpose. 
C)  Both of the above. 
D)  None of the above.

Question 17

Which of the following is not a fiduciary fund type?

Accepted Answer

A)  Agency. 
B)  Expendable trust. 
C)  Private-purpose trust. 
D)  Investment trust.

Question 18

Governmental funds do not include:

Accepted Answer

A)  Special revenue funds 
B)  Agency funds 
C)  Debt service funds 
D)  The General fund

Question 19

Business activities fund statements must be changed to the accrual basis from the modified accrual basis when preparing government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 20

The ______ Fund accounts for and reports the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects.

Accepted Answer

A)  Special revenue 
B)  General 
C)  Enterprise 
D)  Agency

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

According to GASB standards relating to Budgetary Accounting,budgetary comparisons are not required for proprietary funds.

Governmental funds use the:

Although certain supplementary information may not be required,if presented,it must follow GASB guidance regarding its format and content.

Which of the following is an environmental difference between governments and for-profit business enterprises?

Which of the following is not true regarding GASB Concepts Statement No.2,Service Efforts and Accomplishments Reporting:

Provide the definition of the following terms as outlined by GASB Concepts Statement No.4,Elements of Financial Statements: Assets Liabilities Net position Inflows of resources Outflows of resources

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

Which of the following is a governmental fund?

Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

A city government collects local option sales taxes legally restricted to pay for the construction of a new courthouse.Which fund should account for the receipt of the sales taxes?

FASB sets the reporting standards for private and public not-for-for profits

The _______ sets the accounting and financial reporting standards for both state and local governments and public not-for-profits.

The GASB requires supplementary information to be reported with its financial statements if it is essential to establish appropriate context for the financial statements and notes.

State and local governmental funds are organized into three categories including:

Under the modified accrual basis of accounting,revenues should be recognized when they are:

Which of the following is true regarding fund classifications?

Which of the following is not a fiduciary fund type?

Governmental funds do not include:

Business activities fund statements must be changed to the accrual basis from the modified accrual basis when preparing government-wide financial statements.

The ______ Fund accounts for and reports the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects.