Question 1

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 2

Level "A" GAAP for The University of Virginia, a public institution, would be established by the:

Accepted Answer

A)  Financial Accounting Standards Board. 
B)  Governmental Accounting Standards Board. 
C)  American Institute of Certified Public Accountants. 
D)  National Association of College and University Business Officers.

Question 3

Which of the following fund types uses accrual accounting?

Accepted Answer

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

Question 4

List and define the five classifications of governmental funds.

Accepted Answer

The answer of List and define the five classifications of...

Question 5

What are Enterprise funds used for?

Accepted Answer

A)  To account for pension and employee benefit funds for which the governmental unit is the trustee. 
B)  To account for most of the basic services provided by the governmental units. 
C)  To report resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry 
D)  To account for resources provided primarily through the use of sales and service charges to parties external to the government.

Question 6

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 7

The term "fiduciary funds" applies to:

Accepted Answer

A)  enterprise and internal service funds. 
B)  private-purpose trust, investment trust, pension trust and agency funds 
C)  pension, investment trust and enterprise funds 
D)  enterprise, internal service, and private-purpose trust funds.

Question 8

The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.

Accepted Answer

A) True 
 B)False

Question 9

The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government and it is the intent of the government to measure revenues, expenses and changes in net position.

Accepted Answer

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

Question 10

Which of the following are governmental funds?

Accepted Answer

A)  Agency and Permanent 
B)  Enterprise and Debt Service 
C)  Debt Service and Capital Project 
D)  Internal Service and Special Revenue

Question 11

Which fund category must change from modified accrual to accrual basis when preparing government-wide financial statements?

Accepted Answer

A)  Governmental 
B)  Proprietary 
C)  Fiduciary 
D)  A & B only

Question 12

Government-wide statements use the:

Accepted Answer

A)  current financial resources measurement focus and accrual basis of accounting. 
B)  economic resources measurement focus and modified accrual basis of accounting. 
C)  economic resources measurement focus and accrual basis of accounting. 
D)  none of the above.

Question 13

Under GASB, accrual accounting is used for:

Accepted Answer

A)  government-wide financial statements only. 
B)  government-wide financial statements and proprietary fund financial statements only. 
C)  government-wide, proprietary fund, and fiduciary fund financial statements only. 
D)  government-wide and all fund financial statements

Question 14

The economic resource measurement focus and accrual basis of measurement is an important feature of government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 15

The term "proprietary funds" applies to:

Accepted Answer

A)  all funds that use accrual accounting. 
B)  enterprise and internal service funds only. 
C)  enterprise, internal service, and private-purpose trust funds. 
D)  none of the above answers are correct.

Question 16

FASAB, GASB and FASB standards are set forth primarily in documents called interpretations.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?

Accepted Answer

A)  Federal Accounting Standards Advisory Board. 
B)  Office of Management and Budget. 
C)  Governmental Accounting Standards Board. 
D)  None of the above; no one has been granted authority to set standards for the federal government

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

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

Level "A" GAAP for The University of Virginia, a public institution, would be established by the:

Which of the following fund types uses accrual accounting?

List and define the five classifications of governmental funds.

What are Enterprise funds used for?

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.

The term "fiduciary funds" applies to:

The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.

The ______ Funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government and it is the intent of the government to measure revenues, expenses and changes in net position.

Which of the following are governmental funds?

Which fund category must change from modified accrual to accrual basis when preparing government-wide financial statements?

Government-wide statements use the:

Under GASB, accrual accounting is used for:

The economic resource measurement focus and accrual basis of measurement is an important feature of government-wide financial statements.

The term "proprietary funds" applies to:

FASAB, GASB and FASB standards are set forth primarily in documents called interpretations.

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.

Which of the following is not a fiduciary fund type?

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

Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?