Question 1

The governmental fund financial statements are useful in assessing operational accountability.

Accepted Answer

A) True 
 B)False

Question 2

The FASB,GASB,and FASAB all focus their standards on both internal and external financial reporting.

Accepted Answer

A) True 
 B)False

Question 3

A comprehensive annual financial report (CAFR)prepared in conformity with GASB recommendations should include which of the following sections?

Accepted Answer

A)  Letter of transmittal, management's discussion and analysis (MD&
A) , and financial. 
B)  Introductory, financial, and statistical. 
C)  Introductory, MD&A, and financial. 
D)  Letter of transmittal, financial, and supplementary.

Question 4

Which of the following is identified by the FASAB as the foundation for federal financial reporting?

Accepted Answer

A)  Decision usefulness. 
B)  Accountability. 
C)  Understandability. 
D)  Budget integrity.

Question 5

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...

Question 6

In addition to financial statements and notes,GASB requires governments to provide information on service efforts and accomplishments (SEA)in their reports to the public.

Accepted Answer

A) True 
 B)False

Question 7

The Financial Accounting Foundation has oversight over both FASB and GASB.

Accepted Answer

A) True 
 B)False

Question 8

Providing information on accountability is the primary financial reporting objective for both governmental and not-for-profit entities.

Accepted Answer

A) True 
 B)False

Question 9

Special purpose governments generally provide a wider range of services to their residents than do general purpose governments.

Accepted Answer

A) True 
 B)False

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 needs of users of government financial reports are the same as those of users of business entity financial reports.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following organizations issue standards that focus on both internal and external financial reporting?

Accepted Answer

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

Question 13

On what do the government-wide financial statements report?

Accepted Answer

A)  Operational accountability. 
B)  Fiscal accountability. 
C)  The cost of government services. 
D)  Budgetary compliance.

Question 14

The Governmental Accounting Standards Board (GASB)is the body authorized to establish accounting principles for all government entities.

Accepted Answer

A) True 
 B)False

Question 15

Why should persons interested in reading financial reports of government and not-for-profit entities be familiar with standards set by the GASB and FASB?

Accepted Answer

The answer of Why should persons interested in reading financial...

Question 16

Government-wide financial statements are prepared using the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 17

The Financial Accounting Standards Board (FASB)is the body authorized to establish accounting principles for all colleges and universities and health care entities.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a net asset category reported by not-for-profit entities?

Accepted Answer

A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Restricted net assets. 
D)  Permanently restricted net assets.

Question 19

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.

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

The governmental fund financial statements are useful in assessing operational accountability.

The FASB,GASB,and FASAB all focus their standards on both internal and external financial reporting.

A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include which of the following sections?

Which of the following is identified by the FASAB as the foundation for federal financial reporting?

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

In addition to financial statements and notes,GASB requires governments to provide information on service efforts and accomplishments (SEA)in their reports to the public.

The Financial Accounting Foundation has oversight over both FASB and GASB.

Providing information on accountability is the primary financial reporting objective for both governmental and not-for-profit entities.

Special purpose governments generally provide a wider range of services to their residents than do general purpose governments.

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

The needs of users of government financial reports are the same as those of users of business entity financial reports.

Which of the following organizations issue standards that focus on both internal and external financial reporting?

On what do the government-wide financial statements report?

The Governmental Accounting Standards Board (GASB)is the body authorized to establish accounting principles for all government entities.

Why should persons interested in reading financial reports of government and not-for-profit entities be familiar with standards set by the GASB and FASB?

Government-wide financial statements are prepared using the accrual basis of accounting.

The Financial Accounting Standards Board (FASB)is the body authorized to establish accounting principles for all colleges and universities and health care entities.

Which of the following is not a net asset category reported by not-for-profit entities?

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