Essentials of Accounting for Governmental and Not-for-Profit Organizations 15th Edition (Paul Copley) Test Bank | Comprehensive Exam Questions & Verified Answers

TEST BANK for Essentials of Accounting for Governmental and Not-
for-Profit Organizations, 15th Edition by Paul Copley
All Chapters Fully Covered| Verified Questions & 100% Accurate Solutions for
Exam Preparations| A+ PASS GUARANTEED
All Answers are at the End of Each Chapter

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, Chapter 01
True/False Questions

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.
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⊚ 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
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12) The FASAB requires more financial statements than are typically required of state and local
governments.
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⊚ 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
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18) FASAB, GASB, and FASB standards are set forth primarily in documents called
interpretations.
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⊚ true
⊚ false
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