Question 1

The fund basis statements for governmental funds are presented using the

Accepted Answer

A)  Economic Resources Measurement focus and the Accrual Basis of Accounting. 
B)  Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting. 
C)  Current Financial Resources Measurement focus and the Accrual Basis of Accounting. 
D)  Economic Resources Measurement focus and the Modified Accrual Basis of Accounting.

Question 2

Fiduciary funds include agency,pension trust,investment trust,and permanent funds.

Accepted Answer

A) True 
 B)False

Question 3

Long-term debt that is to be paid with tax revenues is not reported both in the government-wide statements and in the governmental fund statements

Accepted Answer

A) True 
 B)False

Question 4

FASB sets the reporting standards for private not-for-for profits.

Accepted Answer

A) True 
 B)False

Question 5

According to GASB standards relating to Budgetary Accounting,budgetary comparisons are required for all funds even those for which an annual budget has not been adopted.

Accepted Answer

A) True 
 B)False

Question 6

The FASB has the authority to establish accounting and financial reporting standards for:

Accepted Answer

A)  Federal government 
B)  Private not-for-profits 
C)  Public not-for-profits 
D)  State and local governments

Question 7

Under GASB Statement 34,capital assets:

Accepted Answer

A)  must be reported in government-wide statements but are not reported in any of the fund financial statements. 
B)  must be reported in government-wide statements and in proprietary fund financial statements. 
C)  are not to be reported in either government-wide or fund financial statements. 
D)  are to be reported but not depreciated in government-wide and fund financial statements.

Question 8

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 9

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.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following fund types does not use modified accrual accounting?

Accepted Answer

A)  Debt Service 
B)  Special Revenue 
C)  Investment Trust 
D)  Permanent

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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:

Accepted Answer

The answer of What are the five environmental factors relating...

Question 14

The Financial Accounting Standards Board sets financial reporting standards for profit-seeking businesses and nongovernmental,not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 15

The FASAB requires more financial statements than are typically required of state and local governments.

Accepted Answer

A) True 
 B)False

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

What are the fund-basis financial statements for each of the following fund categories?
Fiduciary
Proprietary
Governmental

Accepted Answer

The answer of What are the fund-basis financial statements for...

Question 18

The ______ Fund accounts for all resources other than those required to be accounted for in other funds.

Accepted Answer

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

Question 19

Which of the following are the governmental funds?

Accepted Answer

A)  General, special revenue, debt service, capital projects, private purpose. 
B)  General, special revenue, debt service, capital projects, permanent. 
C)  General, special revenue, debt service, capital projects, internal service. 
D)  None of the above.

Question 20

Fiduciary funds are to use the:

Accepted Answer

A)  economic resources measurement focus and modified accrual basis of accounting. 
B)  current financial resources measurement focus and accrual basis of accounting. 
C)  economic resources measurement focus and accrual basis of accounting. 
D)  none of the above, the fiduciary funds have no revenues.

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

The fund basis statements for governmental funds are presented using the

Fiduciary funds include agency,pension trust,investment trust,and permanent funds.

Long-term debt that is to be paid with tax revenues is not reported both in the government-wide statements and in the governmental fund statements

FASB sets the reporting standards for private not-for-for profits.

According to GASB standards relating to Budgetary Accounting,budgetary comparisons are required for all funds even those for which an annual budget has not been adopted.

The FASB has the authority to establish accounting and financial reporting standards for:

Under GASB Statement 34,capital assets:

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

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.

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

Which of the following fund types does not use modified accrual accounting?

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

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 profit-seeking businesses and nongovernmental,not-for-profit organizations.

The FASAB requires more financial statements than are typically required of state and local governments.

Which of the following is true regarding fund classifications?

What are the fund-basis financial statements for each of the following fund categories? Fiduciary Proprietary Governmental

The ______ Fund accounts for all resources other than those required to be accounted for in other funds.

Which of the following are the governmental funds?

Fiduciary funds are to use the: