Governmental NFP Exam 1 Questions and Answers 100% Pass

Governmental NFP Exam 1 Questions and Answers 100% Pass The term "proprietary funds" applies to: - enterprise and internal service funds only. The FASB has the authority to establish accounting and financial reporting standards for: - private not-for-profits Governmental funds use the - current financial resources measurement focus and modified accrual basis of accounting Governmental funds do not include - Agency Funds According to the GASB, capital assets - must be reported in government-wide statements and in proprietary fund financial statements 2 Katelyn Whitman, All Rights Reserved © 2025 A city government collects local sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children. Which fund should account for the receipt of the sales tax? - Special Revenue Fund Under GASB, accrual accounting is used for - government-wide, proprietary fund, and fiduciary fund financial statements only Which of the following funds is a fiduciary fund? - Pension trust fund The general fund classified under governmental funds - accounts for most of the basic services provided by the governmental unit The _________ sets the accounting and financial reporting standards for both state and local governments and public not-for-profits - GASB The ________ Fund accoutns for and reports the procceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects - Special Revenue What basis of accounting would the Enterprise Fund use? - Accrual How many General Funds may a government have? - One 3 Katelyn Whitman, All Rights Reserved © 2025 What type of fund is used when resources are provided mainly through business-like transactions to parties external to the government? - Enterprise Funds Financial reports for state and local governments are well suited for all of the following except? a. assessing financial condition and results of operations. b. Comparing actual results with the legally adopted budget. c. Measuring the effectiveness of government services such as police and fire protection. d. assisting in determining compliance with finance-related laws and regulations - Measuring the effectiveness of government services such as police and fire protection What does the acronym CAFR stand for? - Comprehensive Annual Financial Report What of the following statements is false? 4 Katelyn Whitman, All Rights Reserved © 2025 A) A comprehensive annual financial report (CAFR) is the government's official annual report prepared and published as a matter of public record. B) A CAFR is not required for entities with only a general fund. C) The CAFR contains introductory material, an auditor's report, certain RSI, schedules necessary to demonstrate legal compliance, and statistical tables. D) Governments have two levels of financial statement reporting. The first is the fund-basis financial statements and the second is the government- wide statements. - A CAFR is not required for e