TEST BANK
3rd Edition
Accounting for Governmental and Nonprofit
Organizations
Terry Patton | S. Patton | Martin Ives Bloch | McDonough
Complete Test Bank - Chapters 1-17
1,740+ Questions & Practice Activities
Multiple Choice Questions (MCQs)
True/False Questions
Applied & Problem-Solving Questions
Complete Answers Included
Governmental & Nonprofit Accounting Coverage
Fund Accounting & Financial Reporting Questions
GASB, FASB & FASAB Concepts
Auditing & Financial Statement Analysis
COMPLETE CHAPTER COVERAGE: 1-17
Organized for quick chapter-by-chapter navigation
,TABLE OF CONTENTS
Complete Test Bank - Chapters 1 through 17
CHAPTER 1 CHAPTER 10
CHAPTER 2 CHAPTER 11
CHAPTER 3 CHAPTER 12
CHAPTER 4 CHAPTER 13
CHAPTER 5 CHAPTER 14
CHAPTER 6 CHAPTER 15
CHAPTER 7 CHAPTER 16
CHAPTER 8 CHAPTER 17
CHAPTER 9
Each chapter contains its original questions and answer selections in sequence.
,Chapter 01 - 3e Patton
Question 1 Marked out of 10.00 Report an issue
Which of the following is a distinguishing characteristic of a nonprofit organization?
Select one:
a. Its revenues do not exceed its expenses
b. It does not charge fees for any of its services
c. There is an absence of ownership interests that can be sold, transferred, or redeemed
d. It does not depreciate its capital assets
Question 2 Marked out of 10.00 Report an issue
Which of the following activities is performed by state and local governments but not nonprofit organizations?
Select one:
a. Preparing budgets
b. Issuing federal tax-exempt debt
c. Receiving grants
d. Providing services to constituents
Question 3 Marked out of 10.00 Report an issue
Which of the following is a reason that governmental accounting is different from business accounting?
Select one:
a. Governments have budgets.
b. Governments may have liabilities
c. Governments are expected to have a long-life.
d. Governments provide services.
Question 4 Marked out of 10.00 Report an issue
Most of the revenues obtained by most governments come from:
Select one:
a. Sales of goods or services
b. All of these
c. Taxes
d. Borrowing
Question 5 Marked out of 10.00 Report an issue
Which of the following is a major source of resources for many nonprofits, but not for businesses or governments?
Select one:
a. Sales of goods to consumers
b. Donor contributions
c. Taxes
d. Sale of stock
, Question 6 Marked out of 10.00 Report an issue
A nonprofit organization performs all of the following activities except:
Select one:
a. Purchasing long-lived (capital) assets
b. Paying dividends to shareholders
c. Charging a fee for services provided
d. Paying overtime to employees
Question 7 Marked out of 10.00 Report an issue
Which of the following are considered governmental entities?
Select one:
a. All of these
b. Federal government
c. States, counties, cities, and towns
d. Special-purpose political subdivisions
e. Public corporations and bodies corporate and politic
Question 8 Marked out of 10.00 Report an issue
Which of the following statements best describes the legal status of the budget in a general-purpose local government?
Select one:
a. Purely internal management tool with no legal force
b. Required only when the government issues debt
c. Optional document encouraged by the GASB but not legally binding
d. Legally adopted and may not be exceeded without legislative approval
Question 9 Marked out of 10.00 Report an issue
The GASB establishes financial reporting standards for state and local governmental entities. An entity created by a government possessing
one or more of the following characteristics should follow GASB standards:
Select one:
a. The potential that another government could unilaterally dissolve the entity and assume their assets and liabilities.
b. The power to directly issue debt, for which its interest is exempt from federal taxation.
c. Any of the listed characteristics indicate the government-created organization should be considered a government for purposes of
financial reporting.
d. The power to enact and levy a tax.
3rd Edition
Accounting for Governmental and Nonprofit
Organizations
Terry Patton | S. Patton | Martin Ives Bloch | McDonough
Complete Test Bank - Chapters 1-17
1,740+ Questions & Practice Activities
Multiple Choice Questions (MCQs)
True/False Questions
Applied & Problem-Solving Questions
Complete Answers Included
Governmental & Nonprofit Accounting Coverage
Fund Accounting & Financial Reporting Questions
GASB, FASB & FASAB Concepts
Auditing & Financial Statement Analysis
COMPLETE CHAPTER COVERAGE: 1-17
Organized for quick chapter-by-chapter navigation
,TABLE OF CONTENTS
Complete Test Bank - Chapters 1 through 17
CHAPTER 1 CHAPTER 10
CHAPTER 2 CHAPTER 11
CHAPTER 3 CHAPTER 12
CHAPTER 4 CHAPTER 13
CHAPTER 5 CHAPTER 14
CHAPTER 6 CHAPTER 15
CHAPTER 7 CHAPTER 16
CHAPTER 8 CHAPTER 17
CHAPTER 9
Each chapter contains its original questions and answer selections in sequence.
,Chapter 01 - 3e Patton
Question 1 Marked out of 10.00 Report an issue
Which of the following is a distinguishing characteristic of a nonprofit organization?
Select one:
a. Its revenues do not exceed its expenses
b. It does not charge fees for any of its services
c. There is an absence of ownership interests that can be sold, transferred, or redeemed
d. It does not depreciate its capital assets
Question 2 Marked out of 10.00 Report an issue
Which of the following activities is performed by state and local governments but not nonprofit organizations?
Select one:
a. Preparing budgets
b. Issuing federal tax-exempt debt
c. Receiving grants
d. Providing services to constituents
Question 3 Marked out of 10.00 Report an issue
Which of the following is a reason that governmental accounting is different from business accounting?
Select one:
a. Governments have budgets.
b. Governments may have liabilities
c. Governments are expected to have a long-life.
d. Governments provide services.
Question 4 Marked out of 10.00 Report an issue
Most of the revenues obtained by most governments come from:
Select one:
a. Sales of goods or services
b. All of these
c. Taxes
d. Borrowing
Question 5 Marked out of 10.00 Report an issue
Which of the following is a major source of resources for many nonprofits, but not for businesses or governments?
Select one:
a. Sales of goods to consumers
b. Donor contributions
c. Taxes
d. Sale of stock
, Question 6 Marked out of 10.00 Report an issue
A nonprofit organization performs all of the following activities except:
Select one:
a. Purchasing long-lived (capital) assets
b. Paying dividends to shareholders
c. Charging a fee for services provided
d. Paying overtime to employees
Question 7 Marked out of 10.00 Report an issue
Which of the following are considered governmental entities?
Select one:
a. All of these
b. Federal government
c. States, counties, cities, and towns
d. Special-purpose political subdivisions
e. Public corporations and bodies corporate and politic
Question 8 Marked out of 10.00 Report an issue
Which of the following statements best describes the legal status of the budget in a general-purpose local government?
Select one:
a. Purely internal management tool with no legal force
b. Required only when the government issues debt
c. Optional document encouraged by the GASB but not legally binding
d. Legally adopted and may not be exceeded without legislative approval
Question 9 Marked out of 10.00 Report an issue
The GASB establishes financial reporting standards for state and local governmental entities. An entity created by a government possessing
one or more of the following characteristics should follow GASB standards:
Select one:
a. The potential that another government could unilaterally dissolve the entity and assume their assets and liabilities.
b. The power to directly issue debt, for which its interest is exempt from federal taxation.
c. Any of the listed characteristics indicate the government-created organization should be considered a government for purposes of
financial reporting.
d. The power to enact and levy a tax.
