ACCT 4421- CH 1 comprehensive
Questions and Answers with Verified
Solutions
Question 1:
The traditional business model of accounting is inadequate for
governments and not-for-profit organizations primarily because
businesses differ from governments and not-for-profit organizations in
that
Answer:
They have different missions
Question 2:
If businesses are "governed by the marketplace" governments are
governed by
Answer:
Budgets
Question 3:
The primary objective of a not-for-profit organization or a government is to
Answer:
Provide services to constituents
Question 4:
In governments in contrast to businesses
Answer:
There may not be a direct relationship between revenues raised and the
demand for the entity's services
, Question 5:
The organization responsible for setting accounting standards for state
and local governments is the
Answer:
GASB (Government Accounting Standards Board)
Question 6:
The number of governmental units in the US is approximately
Answer:
89,500
Question 7:
Do not issue common stock
Answer:
Governments differ from businesses in that they
Question 8:
Interperiod equity refers to a condition whereby
Answer:
Current-year revenues are equal to or exceed budgeted expenses
Question 9:
Which of the following is not one of the FASBs financial reporting
objectives
Answer:
Reporting on budgetary compliance
Questions and Answers with Verified
Solutions
Question 1:
The traditional business model of accounting is inadequate for
governments and not-for-profit organizations primarily because
businesses differ from governments and not-for-profit organizations in
that
Answer:
They have different missions
Question 2:
If businesses are "governed by the marketplace" governments are
governed by
Answer:
Budgets
Question 3:
The primary objective of a not-for-profit organization or a government is to
Answer:
Provide services to constituents
Question 4:
In governments in contrast to businesses
Answer:
There may not be a direct relationship between revenues raised and the
demand for the entity's services
, Question 5:
The organization responsible for setting accounting standards for state
and local governments is the
Answer:
GASB (Government Accounting Standards Board)
Question 6:
The number of governmental units in the US is approximately
Answer:
89,500
Question 7:
Do not issue common stock
Answer:
Governments differ from businesses in that they
Question 8:
Interperiod equity refers to a condition whereby
Answer:
Current-year revenues are equal to or exceed budgeted expenses
Question 9:
Which of the following is not one of the FASBs financial reporting
objectives
Answer:
Reporting on budgetary compliance
