Question 1

What is the difference between recording an expenditure under modified accrual accounting and an expense under accrual accounting?

Accepted Answer

The answer of What is the difference between recording an...

Question 2

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 3

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 4

The FASAB was established to recommend accounting and financial reporting standards for the federal government.

Accepted Answer

A) True 
 B)False

Question 5

The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal, state, and local.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following fund types is present in every general-purpose government?

Accepted Answer

A)  Permanent 
B)  Special revenue 
C)  General 
D)  Capital projects

Question 7

In FASB's Statement of Financial Accounting Concepts No. 4, the FASB identifies the information needs of the users of nonbusiness financial statements.
Which of the following is not one of those needs?

Accepted Answer

A)  Making decisions about the allocation of resources to those organizations 
B)  Assessing the services that a nonbusiness organization provides and its ability to continue to provide those services 
C)  Assessing cash flow and the entity's ability to make current payments 
D)  Evaluating an organization's economic resources, obligations, and effects of changes in those net resources.

Question 8

According to the GASB, 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 9

What type of fund is used when resources are provided mainly through business-like transactions to parties external to the government?

Accepted Answer

A)  Internal Service Funds 
B)  Capital Projects Funds 
C)  Agency Funds 
D)  Enterprise Funds

Question 10

The GASB and the FASB are parallel bodies under the oversight of the Financial Accounting Foundation FAF

Accepted Answer

A) True 
 B)False

Question 11

Contrast revenue recognition under the accrual and modified accrual bases of accounting.

Accepted Answer

The answer of Contrast revenue recognition under the accrual and...

Question 12

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 13

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

Accepted Answer

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

Question 14

Internal Service funds are treated as governmental activities in the government-wide statements if the principal customers are other departments within the General Fund.

Accepted Answer

A) True 
 B)False

Question 15

Measurement focus refers to those items, such as current and long-term assets, that are being reported on the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

Under the modified accrual basis of accounting, expenditures should be recognized when:

Accepted Answer

A)  they are authorized by the budget ordinance. 
B)  they are paid. 
C)  they are measurable and can be financed by the revenues of the current period. 
D)  the fund liability is incurred.

Question 17

GASB standards provide that accounting systems of governmental funds are designed to measure:

Accepted Answer

A)  The extent to which financial resources obtained during a period are sufficient to cover claims incurred during that period against financial resources 
B)  The acquisition and disposal of net assets 
C)  The net financial resources available for future periods. 
D)  The receipt and expenditure of resources. These resources are generally restricted to current assets and liabilities.

Question 18

In order for a fund to exist, there must be:

Accepted Answer

A)  A fiscal entity; assets set aside for a specific purpose 
B)  A double-entry accounting entity 
C)  A & B are optional and not required 
D)  Both A & B are required

Question 19

Which of the following statements is false?

Accepted Answer

A)  A comprehensive annual financial report CAFR is the government's official annual report prepared and published as a matter of public record. 
B)  A CAFR is not required for entities with only a general fund. 
C)  The CAFR contains introductory material, an auditor's report, certain RSI, schedules necessary to demonstrate legal compliance, and statistical tables. 
D)  Governments have two levels of financial statement reporting. The first is the fund-basis financial statements and the second is the government-wide statements.

Question 20

Fiduciary funds 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

What is the difference between recording an expenditure under modified accrual accounting and an expense under accrual accounting?

Which of the following are the governmental funds?

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

The FASAB was established to recommend accounting and financial reporting standards for the federal government.

The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal, state, and local.

Which of the following fund types is present in every general-purpose government?

In FASB's Statement of Financial Accounting Concepts No. 4, the FASB identifies the information needs of the users of nonbusiness financial statements. Which of the following is not one of those needs?

According to the GASB, Capital assets:

What type of fund is used when resources are provided mainly through business-like transactions to parties external to the government?

The GASB and the FASB are parallel bodies under the oversight of the Financial Accounting Foundation FAF

Contrast revenue recognition under the accrual and modified accrual bases of accounting.

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

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

Internal Service funds are treated as governmental activities in the government-wide statements if the principal customers are other departments within the General Fund.

Measurement focus refers to those items, such as current and long-term assets, that are being reported on the financial statements.

Under the modified accrual basis of accounting, expenditures should be recognized when:

GASB standards provide that accounting systems of governmental funds are designed to measure:

In order for a fund to exist, there must be:

Which of the following statements is false?

Fiduciary funds use the: