Student name:__________
s M
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
tu v i
2) Identify and explain the characteristics that distinguish governments and not-for-profit
a
E
entities from business entities.
D
a G
p E
3) GASB and FASB standards are concerned only with external financial reporting;
p
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
E
you agree with this statement? Why or why not?
r
K
o v e
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
d
Version 1 1
, s M
5) Explain in your own words why accountability is the cornerstone of all financial
t
reporting in government.
u v i a
E
6) In your own words state the primary needs the GASB believes external users have for
financial reports of state and local governments. For contrast, state the uses the FASB believes
D
external users have for the financial reports of not-for-profit organizations.
a G
p E
p
E
7) Describe the difference between a comprehensive annual financial report (CAFR) and
r
GASB general purpose external financial reporting for state and local governments.
K
o v e
8) Identify and briefly explain the four sections of the performance and accountability report
d
(PAR) that the Office of Management and Budget requires major federal departments and
agencies to prepare.
Version 1 2
, s M
tu
9) Explain the concepts of fiscal and operational accountability and the basis of accounting
v
used to capture each concept.
i a
E D
a G
10) Describe the comprehensive annual financial report (CAFR). What are the sections of the
p
report and which components of the organization should it include? Is a CAFR required?
E
p
E
r
K
o
11) The Governmental Accounting Standards Board is assigned responsibility for setting
accounting and financial reporting standards for which of the following?
v
A) Governments such as federal agencies, states, cities, counties, villages, and
e
townships.
B) State and local government entities and governmentally-related units and agencies,
such as utilities, authorities, hospitals, and colleges and universities.
d
C) Not-for-profit organizations.
D) State and local governments and all not-for-profit organizations.
Version 1 3
, 12) Which of the following bodies has been established to recommend accounting and
financial reporting standards for the federal government?
s M
A) Financial Accounting Standards Board (FASB).
t
B) Governmental Accounting Standards Board (GASB).
C) Federal Accounting Foundation (FAF).
u
D) Federal Accounting Standards Advisory Board (FASAB).
v
13) The Financial Accounting Standards Board has the responsibility for setting accounting
i
and financial reporting standards for which of the following?
a
E
A) All not-for-profit organizations that are nongovernmental and business entities.
B) All not-for-profit organizations and business entities.
C)
D
All not-for-profit organizations.
a
D) Special purpose governments with a business purpose.
G
p E
14) You are trying to decide if an entity you are reviewing is a government or a not-for-
p
profit. Which of the following would indicate it is a government rather than a not-for-profit
entity?
E
r
A) Absence of profit motive.
K
B) A primary source of revenues is taxes.
o
C) Resource providers do not expect benefits proportional to the resources provided.
D) Absence of a defined ownership interest that can be sold, transferred, or redeemed.
v e
15) Which of the following is identified by the GASB as the "cornerstone" of all financial
reporting in government?
d
A) Decision usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod equity.
Version 1 4
s M
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
tu v i
2) Identify and explain the characteristics that distinguish governments and not-for-profit
a
E
entities from business entities.
D
a G
p E
3) GASB and FASB standards are concerned only with external financial reporting;
p
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
E
you agree with this statement? Why or why not?
r
K
o v e
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
d
Version 1 1
, s M
5) Explain in your own words why accountability is the cornerstone of all financial
t
reporting in government.
u v i a
E
6) In your own words state the primary needs the GASB believes external users have for
financial reports of state and local governments. For contrast, state the uses the FASB believes
D
external users have for the financial reports of not-for-profit organizations.
a G
p E
p
E
7) Describe the difference between a comprehensive annual financial report (CAFR) and
r
GASB general purpose external financial reporting for state and local governments.
K
o v e
8) Identify and briefly explain the four sections of the performance and accountability report
d
(PAR) that the Office of Management and Budget requires major federal departments and
agencies to prepare.
Version 1 2
, s M
tu
9) Explain the concepts of fiscal and operational accountability and the basis of accounting
v
used to capture each concept.
i a
E D
a G
10) Describe the comprehensive annual financial report (CAFR). What are the sections of the
p
report and which components of the organization should it include? Is a CAFR required?
E
p
E
r
K
o
11) The Governmental Accounting Standards Board is assigned responsibility for setting
accounting and financial reporting standards for which of the following?
v
A) Governments such as federal agencies, states, cities, counties, villages, and
e
townships.
B) State and local government entities and governmentally-related units and agencies,
such as utilities, authorities, hospitals, and colleges and universities.
d
C) Not-for-profit organizations.
D) State and local governments and all not-for-profit organizations.
Version 1 3
, 12) Which of the following bodies has been established to recommend accounting and
financial reporting standards for the federal government?
s M
A) Financial Accounting Standards Board (FASB).
t
B) Governmental Accounting Standards Board (GASB).
C) Federal Accounting Foundation (FAF).
u
D) Federal Accounting Standards Advisory Board (FASAB).
v
13) The Financial Accounting Standards Board has the responsibility for setting accounting
i
and financial reporting standards for which of the following?
a
E
A) All not-for-profit organizations that are nongovernmental and business entities.
B) All not-for-profit organizations and business entities.
C)
D
All not-for-profit organizations.
a
D) Special purpose governments with a business purpose.
G
p E
14) You are trying to decide if an entity you are reviewing is a government or a not-for-
p
profit. Which of the following would indicate it is a government rather than a not-for-profit
entity?
E
r
A) Absence of profit motive.
K
B) A primary source of revenues is taxes.
o
C) Resource providers do not expect benefits proportional to the resources provided.
D) Absence of a defined ownership interest that can be sold, transferred, or redeemed.
v e
15) Which of the following is identified by the GASB as the "cornerstone" of all financial
reporting in government?
d
A) Decision usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod equity.
Version 1 4
