Essentials of Accounting for Governmental and Not-for-Profit Organizations 15 edition TestBank|| by Paul Copley{ All Chapters 1 to 14 Covered}.Elaborated And Rationalised Answers.Verified Guide A+

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TEST BANK FOR
Essentials of Accounting for Governmental and Not-for-Profit Organizations 15eCopley -
Chapter 1-14


Chap 01 15e Copley Answers Included ✅
1) The Governmental Accounting Standards Board sets financial reporting standards for all
units of government: federal, state, and local.
⊚ true
⊚ false



2) Fund accounting exists primarily to provide assurance that resources are used according to
legal or donor restrictions.
⊚ true
⊚ false



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



4) FASAB, GASB, and FASB standards are set forth primarily in documents called statements.
⊚ true
⊚ false



5) FASAB, GASB, and FASB reporting standards are set forth primarily in documents called
concept statements.
⊚ true
⊚ false



6) The FASAB was established to recommend accounting and financial reporting standards for
the federal government.
⊚ true
⊚ false




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, 7) The GASB does not require supplementary information to be reported with its financial
statements even if it is essential to establish appropriate context for the financial statements
and notes.
⊚ true
⊚ false



8) The Financial Accounting Standards Board sets financial reporting standards for private not-
for-profits and investor-owned businesses.
⊚ true
⊚ false



9) An organization is presumed to be governmental if it has the ability to issue directly debt that
is exempt from federal taxes.
⊚ true
⊚ false



10) The Financial Accounting Standards Board and the Governmental Accounting Standards
Board are parallel bodies under the oversight of the Financial Accounting Foundation.
⊚ true
⊚ false



11) The Federal Accounting Standards Advisory Board requires less extensive reports than does
the FASB or GASB.
⊚ true
⊚ false



12) The FASAB requires more financial statements than are typically required of state and local
governments.
⊚ true
⊚ false




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, 13) 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.
⊚ true
⊚ false



14) A Management's Discussion and Analysis is required for state and local governmental units,
and the federal government.
⊚ true
⊚ false



15) Although certain supplementary information may not be required, if presented, it must
follow GASB guidance regarding its format and content.
⊚ true
⊚ false



16) The format and content of supplementary information which is not required by GASB is up
to the discretion of the reporting entity.
⊚ true
⊚ false



17) GASB and FASB Concept Statements establish accounting standards that must be complied
with to receive an unqualified audit opinion.
⊚ true
⊚ false



18) FASAB, GASB, and FASB standards are set forth primarily in documents called
interpretations.
⊚ true
⊚ false




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, 19) Fund-basis statements are presented for three categories of government activities:
governmental, proprietary, and fiduciary.
⊚ true
⊚ false



20) State and local governments may use as many as twelve different fund types.
⊚ true
⊚ false



21) The economic resource measurement focus and accrual basis is an important feature of
government-wide financial statements.
⊚ true
⊚ false



22) Businesslike activity fund-basis statements must be changed to the accrual basis from the
modified accrual basis when preparing government-wide financial statements.
⊚ true
⊚ false



23) Governmental-type activity fund-basis statements must use accrual basis when preparing
government-wide financial statements.
⊚ true
⊚ false



24) Fiduciary funds of a governmental unit use the current financial resources measurement
focus and modified accrual basis of accounting.
⊚ true
⊚ false



25) Under the accrual basis of accounting, revenues are recognized when measurable and
available to finance expenditures of the current period.
⊚ true
⊚ false




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