NonProfit Exam 1 Study Guide Complete Test Bank
NonProfit
with Practice
Exam 1 Questions,
Study Guide
Answers,
Complete
and
Test
Detailed
Bank with
Rationales
Practice
Page for
1Questions,
Governmental
Answers,
and Not-for-Profit
and Detailed Accounting
Rationales for
Students
Governmental and Not-for-Profit Accounting Students.pdf
NonProfit Exam 1 Study
Guide Complete Test Bank
with Practice Questions,
Answers, and Detailed
Rationales for Governmental
and Not-for-Profit
Accounting Students
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 26
Page 1 of 26 2026-03-17
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Governmental Characteristics
1. Officers popularly elected or controlling majority of governing body appointed or approved by governmental
officials
2. Power to enact or enforce tax levy
3. Power to directly issue tax exempt debt
4. Another government may unilaterally dissolve and assume their assets and liabilities of created org
Nonprofit Characteristics
1. Receives contributions without expectation of equal value in return
2. Operate to provide goods and services, but not for the purpose of making a profit
3. Lack of business type ownership interest
Governmental and NonProfit operating environment
Governments and nonprofits exist to provide services to constituents
Sources of revenue for governments
Taxes
Page 2 of 26 2 of 26 2026-03-17
, NonProfit Exam 1 Study Guide Page 3 NonProfit Exam 1 Study Guide.pdf
Sources of revenue for non profits
Donor contributions
Boards that establish GAAP
- Financial Accounting Standards Board (FASB)
- Governmental accounting standards board (GASB)
- Federal accounting standards advisory board (FASAB)
- Internal Accounting Standards Board (IASB)
Who establishes GAAP for state and local governments?
GASB
Who establishes GAAP for non profits?
FASB codification
GAAP Hierarchy Category A - More authoritative
GASB Statements
Page 3 of 26 3 of 26 2026-03-17
NonProfit
with Practice
Exam 1 Questions,
Study Guide
Answers,
Complete
and
Test
Detailed
Bank with
Rationales
Practice
Page for
1Questions,
Governmental
Answers,
and Not-for-Profit
and Detailed Accounting
Rationales for
Students
Governmental and Not-for-Profit Accounting Students.pdf
NonProfit Exam 1 Study
Guide Complete Test Bank
with Practice Questions,
Answers, and Detailed
Rationales for Governmental
and Not-for-Profit
Accounting Students
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 26
Page 1 of 26 2026-03-17
,NonProfit Exam 1 Study Guide Page 2 NonProfit Exam 1 Study Guide.pdf
Governmental Characteristics
1. Officers popularly elected or controlling majority of governing body appointed or approved by governmental
officials
2. Power to enact or enforce tax levy
3. Power to directly issue tax exempt debt
4. Another government may unilaterally dissolve and assume their assets and liabilities of created org
Nonprofit Characteristics
1. Receives contributions without expectation of equal value in return
2. Operate to provide goods and services, but not for the purpose of making a profit
3. Lack of business type ownership interest
Governmental and NonProfit operating environment
Governments and nonprofits exist to provide services to constituents
Sources of revenue for governments
Taxes
Page 2 of 26 2 of 26 2026-03-17
, NonProfit Exam 1 Study Guide Page 3 NonProfit Exam 1 Study Guide.pdf
Sources of revenue for non profits
Donor contributions
Boards that establish GAAP
- Financial Accounting Standards Board (FASB)
- Governmental accounting standards board (GASB)
- Federal accounting standards advisory board (FASAB)
- Internal Accounting Standards Board (IASB)
Who establishes GAAP for state and local governments?
GASB
Who establishes GAAP for non profits?
FASB codification
GAAP Hierarchy Category A - More authoritative
GASB Statements
Page 3 of 26 3 of 26 2026-03-17
