Accounting for Governmental Nonprofit Entities Chapter 9
Questions And A nswers 2025/2026
Responsibility for setting accounting and reporting standards for federal agencies
rests primarily with the Federal Accounting Standards Advisory Board. - CORRECT
ANSWER-FALSE
By law, federal agencies must incorporate the accounting standards (GAAP)
established for the federal government into their financial management systems. -
CORRECT ANSWER-TRUE
The objectives of federal financial reporting are to assist report users in evaluating
budgetary integrity, operating performance, stewardship, and adequacy of
systems and controls. - CORRECT ANSWER-TRUE
Federal departments and agencies should utilize the U.S. Government Standard
General Ledger as the account structure for their accounting systems. - CORRECT
ANSWER-TRUE
Current FASAB standards distinguish intragovernmental assets from governmental
assets and entity assets from nonentity assets. - CORRECT ANSWER-FALSE
Fund balances of a federal agency's various funds are reported in the fund equity
section of the agency's balance sheet. - CORRECT ANSWER-FALSE
, Federal government accounting standards require the measurement of expenses
rather than expenditures. - CORRECT ANSWER-FALSE
Unexpended appropriations is the component of net position in a federal agency
balance sheet that represents the amount of appropriations still available for
obligation, or which has been obligated but not yet expended. - CORRECT
ANSWER-TRUE
Cumulative results of operations is the component of net position in a federal
agency balance sheet that represents the amount of appropriations still available
for obligation, or which has been obligated but not yet expended. - CORRECT
ANSWER-FALSE
The federal budgetary term "commitment" is synonymous with "appropriations"
as used in state and local government terminology. - CORRECT ANSWER-FALSE
The financial statements of the U.S. government are prepared using generally
accepted accounting principles promulgated by the Governmental Accounting
Standards Board. - CORRECT ANSWER-FALSE
Federal government agencies prepare a management's discussion and analysis
(MD&A) to be included in their general purpose federal financial report. -
CORRECT ANSWER-TRUE
Questions And A nswers 2025/2026
Responsibility for setting accounting and reporting standards for federal agencies
rests primarily with the Federal Accounting Standards Advisory Board. - CORRECT
ANSWER-FALSE
By law, federal agencies must incorporate the accounting standards (GAAP)
established for the federal government into their financial management systems. -
CORRECT ANSWER-TRUE
The objectives of federal financial reporting are to assist report users in evaluating
budgetary integrity, operating performance, stewardship, and adequacy of
systems and controls. - CORRECT ANSWER-TRUE
Federal departments and agencies should utilize the U.S. Government Standard
General Ledger as the account structure for their accounting systems. - CORRECT
ANSWER-TRUE
Current FASAB standards distinguish intragovernmental assets from governmental
assets and entity assets from nonentity assets. - CORRECT ANSWER-FALSE
Fund balances of a federal agency's various funds are reported in the fund equity
section of the agency's balance sheet. - CORRECT ANSWER-FALSE
, Federal government accounting standards require the measurement of expenses
rather than expenditures. - CORRECT ANSWER-FALSE
Unexpended appropriations is the component of net position in a federal agency
balance sheet that represents the amount of appropriations still available for
obligation, or which has been obligated but not yet expended. - CORRECT
ANSWER-TRUE
Cumulative results of operations is the component of net position in a federal
agency balance sheet that represents the amount of appropriations still available
for obligation, or which has been obligated but not yet expended. - CORRECT
ANSWER-FALSE
The federal budgetary term "commitment" is synonymous with "appropriations"
as used in state and local government terminology. - CORRECT ANSWER-FALSE
The financial statements of the U.S. government are prepared using generally
accepted accounting principles promulgated by the Governmental Accounting
Standards Board. - CORRECT ANSWER-FALSE
Federal government agencies prepare a management's discussion and analysis
(MD&A) to be included in their general purpose federal financial report. -
CORRECT ANSWER-TRUE
