NFP ACCOUNTING FINAL EXAM
QUESTIONS AND ANSWERS 100% PASS
Which of the following authoritative standards-setting bodies would
establish accounting standards for a not-for-profit entity, such as the City
Symphony, that receives federal grants as well as revenue from ticket
sales? - ✔✔Financial Accounting Standards Board (FASB).
Assets minus liabilities for a state or local government could be described
with which of the following account names? - ✔✔Net position
The Financial Accounting Standards Board's (FASB) objectives of financial
reporting for not-for-profit organizations includes which of the following? -
✔✔Assessing management stewardship and performance.
B. Assessing management stewardship and performance. - ✔✔Business
Environment and Concepts (BEC).
1
Katelyn Whitman, All Rights Reserved © 2025
,A water and sewer utility that provides water treatment services to a three-
county area in the state is funded primarily by local tax dollars. This year,
the utility received a federal grant to monitor water purity. The category
that best describes this utility is a: - ✔✔Special purpose government
In which part of the CPA exam would you expect to find questions about
tax-exempt organizations? - ✔✔Regulation REG
Which of the following is a true statement about accounting standard-
setting bodies? - ✔✔The FASB and GASB are administratively supported
by the Financial Accounting Foundation; the FASAB draws its support
from the federal government
Financial reporting for state and local governments is guided by the
GASB's Concept Statement No. 1 which stresses: - ✔✔Accountability
The reason accounting for governments and not-for-profit organizations is
different than accounting for businesses is primarily that both governments
and not-for-profit organizations: - ✔✔A. Have no owners seeking a return
on their investment.
2
Katelyn Whitman, All Rights Reserved © 2025
,The Federal Accounting Standards Advisory Board's (FASAB) objectives of
financial reporting for federal agencies includes assessing all the following
except: - ✔✔Inter-period equity
Which of the following is not one of the core skills area in the new CPA
exam scheduled to start in 2024 as part of the American Institute of
Certified Public Accountants (AICPA) and National Association of State
Boards of Accountancy's (NASBA) CPA Evolution initiative? - ✔✔D.
Managerial Cost Accounting.
The Financial Standards Board's (FASB) financial reporting model for not-
for-profit organizations differs from that of for-profit businesses because
not-for-profit organizations: - ✔✔D. Have different missions and
stakeholders.
Which of the following organizations helps to identify accounting and
reporting issues to place on the technical agenda of the board that sets state
and local government GAAP? - ✔✔Government Accounting Standards
Advisory Council (GASAC)
3
Katelyn Whitman, All Rights Reserved © 2025
, Which of the following is ordinarily considered one of the major
characteristics distinguishing governments from nongovernmental, not-
for-profit organizations? - ✔✔Governments have the power to tax citizens.
Which of the following organizations is the best source of information
about differences across states in educational and experince requirements
to become a CPA? - ✔✔C. National Association of State Boards of
Accountancy (NASBA).
Which of the following organizations sets auditing standards for its
members? - ✔✔B. American Institute of Certified Public Accountants
(AICPA).
A characteristic activity of a local public school system that distinguishes it
from nongovernmental/not-for-profit organizations, that leads it to use
generally accepted accounting principles established by the GASB rather
than the FASB, is: - ✔✔D. Benefitting from taxes levied on residents of a
community
Which of the following authoritative standards-setting bodies would
establish accounting standards for a private, not-for-profit museum that is
4
Katelyn Whitman, All Rights Reserved © 2025
QUESTIONS AND ANSWERS 100% PASS
Which of the following authoritative standards-setting bodies would
establish accounting standards for a not-for-profit entity, such as the City
Symphony, that receives federal grants as well as revenue from ticket
sales? - ✔✔Financial Accounting Standards Board (FASB).
Assets minus liabilities for a state or local government could be described
with which of the following account names? - ✔✔Net position
The Financial Accounting Standards Board's (FASB) objectives of financial
reporting for not-for-profit organizations includes which of the following? -
✔✔Assessing management stewardship and performance.
B. Assessing management stewardship and performance. - ✔✔Business
Environment and Concepts (BEC).
1
Katelyn Whitman, All Rights Reserved © 2025
,A water and sewer utility that provides water treatment services to a three-
county area in the state is funded primarily by local tax dollars. This year,
the utility received a federal grant to monitor water purity. The category
that best describes this utility is a: - ✔✔Special purpose government
In which part of the CPA exam would you expect to find questions about
tax-exempt organizations? - ✔✔Regulation REG
Which of the following is a true statement about accounting standard-
setting bodies? - ✔✔The FASB and GASB are administratively supported
by the Financial Accounting Foundation; the FASAB draws its support
from the federal government
Financial reporting for state and local governments is guided by the
GASB's Concept Statement No. 1 which stresses: - ✔✔Accountability
The reason accounting for governments and not-for-profit organizations is
different than accounting for businesses is primarily that both governments
and not-for-profit organizations: - ✔✔A. Have no owners seeking a return
on their investment.
2
Katelyn Whitman, All Rights Reserved © 2025
,The Federal Accounting Standards Advisory Board's (FASAB) objectives of
financial reporting for federal agencies includes assessing all the following
except: - ✔✔Inter-period equity
Which of the following is not one of the core skills area in the new CPA
exam scheduled to start in 2024 as part of the American Institute of
Certified Public Accountants (AICPA) and National Association of State
Boards of Accountancy's (NASBA) CPA Evolution initiative? - ✔✔D.
Managerial Cost Accounting.
The Financial Standards Board's (FASB) financial reporting model for not-
for-profit organizations differs from that of for-profit businesses because
not-for-profit organizations: - ✔✔D. Have different missions and
stakeholders.
Which of the following organizations helps to identify accounting and
reporting issues to place on the technical agenda of the board that sets state
and local government GAAP? - ✔✔Government Accounting Standards
Advisory Council (GASAC)
3
Katelyn Whitman, All Rights Reserved © 2025
, Which of the following is ordinarily considered one of the major
characteristics distinguishing governments from nongovernmental, not-
for-profit organizations? - ✔✔Governments have the power to tax citizens.
Which of the following organizations is the best source of information
about differences across states in educational and experince requirements
to become a CPA? - ✔✔C. National Association of State Boards of
Accountancy (NASBA).
Which of the following organizations sets auditing standards for its
members? - ✔✔B. American Institute of Certified Public Accountants
(AICPA).
A characteristic activity of a local public school system that distinguishes it
from nongovernmental/not-for-profit organizations, that leads it to use
generally accepted accounting principles established by the GASB rather
than the FASB, is: - ✔✔D. Benefitting from taxes levied on residents of a
community
Which of the following authoritative standards-setting bodies would
establish accounting standards for a private, not-for-profit museum that is
4
Katelyn Whitman, All Rights Reserved © 2025
