Question 1

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 2

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 3

GASB Concepts Statement No. 3, defines methods of presenting information in financial reports. Concepts Statement No. 3 states that:

Accepted Answer

A)  notes to the financial statements may not include management's objective explanations. 
B)  required supplementary information should be objective but may also include predictions or subjective assessments if management deems it necessary for understanding of the financial statements. 
C)  disclosure in the notes is not an adequate substitute for recognition in the financial statements. 
D)  All of the above are correct.

Question 4

Proprietary funds use the:

Accepted Answer

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

Question 5

Which of the following is not true with respect to a transaction that is nonexchange in nature?

Accepted Answer

A)  They are activities where benefits received are in direct proportion to the fees charged for goods or services. 
B)  They are activities heavily financed by taxes and other involuntary contributions from people and organizations who do not receive benefits directionally proportional to the contribution. 
C)  They are activities undertaken in response to the needs of the public. 
D)  They are activities where recipients may pay less than the cost of the goods or service received.

Question 6

Which of the following does not use the economic resources measurement focus?

Accepted Answer

A)  Fiduciary funds 
B)  Governmental funds 
C)  Proprietary funds 
D)  Government-wide funds

Question 7

Which of the following has established a "Hierarchy of GAAP":

Accepted Answer

A)  Financial Accounting Standards Board. 
B)  Federal Accounting Standards Advisory Board 
C)  Governmental Accounting Standards Board 
D)  All of the above have established a hierarchy

Question 8

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 9

Depreciation on capital assets is included as an expense in the Statement of Activities in the governmental fund statements.

Accepted Answer

A) True 
 B)False

Question 10

According to GASB standards relating to Budgetary Accounting, an annual budget should be adopted by every governmental unit.

Accepted Answer

A) True 
 B)False

Question 11

The information needs of government creditors are vastly different from their counterparts in the corporate world which necessitates different accounting rules.

Accepted Answer

A) True 
 B)False

Question 12

The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities.

Accepted Answer

A) True 
 B)False

Question 13

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...

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

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 private not-for-profits and investor-owned businesses.

GASB Concepts Statement No. 3, defines methods of presenting information in financial reports. Concepts Statement No. 3 states that:

Proprietary funds use the:

Which of the following is not true with respect to a transaction that is nonexchange in nature?

Which of the following does not use the economic resources measurement focus?

Which of the following has established a "Hierarchy of GAAP":

Governmental funds use the:

Depreciation on capital assets is included as an expense in the Statement of Activities in the governmental fund statements.

According to GASB standards relating to Budgetary Accounting, an annual budget should be adopted by every governmental unit.

The information needs of government creditors are vastly different from their counterparts in the corporate world which necessitates different accounting rules.

The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities.

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