Test Bank - Accounting for Governmental & Nonprofit Entities 18th Edition by Jacqueline L. Reck, Suzanne Lowensohn, All Chapters

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TEST BANK



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Accounting for Governmental & Nonprofit Entities 18th Edition
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by Jacqueline L. Reck, Suzanne Lowensohn
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♦️♦️♦️All Chapters Included ✅✅✅
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♦️♦️♦️All Answers Included ✅✅✅
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TEST BANK FOR
Accounting for Governmental and Nonprofit Entities, 18e (Reck)
Chapter 1 I n t r o d u c t i o n to Accounting and Financial Reporting for Government
and Not-for-Profit Entities

1) Special purpose governments generally provide a wider range of services to their residents than
do general purpose governments.

Answer: FALSE
Difficulty: 1 Easy
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Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
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Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry
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2) Examples of general-purpose governments include cities, towns, and public schools that receive
tax revenue to finance the services they provide.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Remember
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AACSB: Knowledge Application
AICPA: BB Industry
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3) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all state and local governments, both general purpose and special
purpose.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
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Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry All Chapters Included




All Answers Included

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4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.

Answer: FALSE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
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AICPA: BB Industry

5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
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Answer: FALSE
Difficulty: 1 Easy
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Topic: Sources of financial reporting standards
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
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not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry

6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
owners.
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Answer: TRUE
Difficulty: 2 Medium
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Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Understand
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AACSB: Knowledge Application
AICPA: FN Reporting
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7) A characteristic common to governments and not-for-profit organizations is that they do not
exist to provide goods or services at a profit or profit equivalent.

Answer: TRUE
Difficulty: 2 Medium
Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Understand
AACSB: Knowledge Application
AICPA: BB Industry
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8) The needs of users of government financial reports are the same as those of users of business
entity financial reports.
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Answer: FALSE
Difficulty: 2 Medium
Topic: Distinguishing Government and Not-For-Profit Organizations
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Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Understand
SE
AACSB: Knowledge Application
AICPA: BB Industry

9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.

Answer: TRUE
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Difficulty: 1 Easy
Topic: Sources of financial reporting standards
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
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reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
C
AICPA: BB Industry
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