TestgBankgForgAccountinggforgGovernmentalg&gNonprofitgEntities,g18egJacquelineg g R
ck,gSuzannegLowensohn,gEarlgWilson
AccountinggforgGovernmentalgandgNonprofitgEntities,g18eg(Reck)
Chapterg1g g IntroductiongtogAccountinggandgFinancialgReportinggforgGovernmentgand
gNot-for-ProfitgEntities
1) Specialgpurposeggovernmentsggenerallygprovidegagwidergrangegofgservicesgtogtheirgresidentsgtha
ngdoggeneralgpurposeggovernments.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
2) Examplesgofggeneralgpurposeggovernmentsgincludegcities,gtowns,gandgpublicgschoolsgthatgreceiv
egtaxgrevenuegtogfinancegthegservicesgtheygprovide.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
3) ThegGovernmentalgAccountinggStandardsgBoardg(GASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallgstategandglocalggovernments,gbothggeneralgpurposegandgspecial
gpurpose.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
1
,4) ThegGovernmentalgAccountinggStandardsgBoardg(GASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallggovernmentgentities.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
5) ThegFinancialgAccountinggStandardsgBoardg(FASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallgcollegesgandguniversitiesgandghealthgcaregentities.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
6) Neitherggovernmentsgnorgnot-for-
profitgentitiesghavegresidualgequitygthatgcangbegdistributedgtogowners.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g FNgReporting
2
,7) Agcharacteristicgcommongtoggovernmentsgandgnot-for-profitgorganizationsgisgthatgtheygdognot
existgtogprovideggoodsgorgservicesgatgagprofitgorgprofitgequivalent.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
8) Thegneedsgofgusersgofggovernmentgfinancialgreportsgaregthegsamegasgthosegofgusersgofgbusine
ssgentitygfinancialgreports.
Answer:g FALSEgDif
ficulty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
9) ThegFederalgAccountinggStandardsgAdvisorygBoardg(FASAB)grecommendsgaccountin
ggprinciplesgandgstandardsgforgthegfederalggovernmentgandgitsgagenciesgandgdepartments.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
3
, 10) ThegFASB,gGASB,gandgFASABgallgfocusgtheirgstandardsgongbothginternalgandgexternalgfinanci
algreporting.
Answer:g FALSEgDif
ficulty:g2gMedium
Topic:g g Objectivesgofgfinancialgreporting
LearninggObjective:g 01-
03gContrastgandgcomparegthegobjectivesgofgfinancialgreportinggforg(1)gstategandglocalggovern
ments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.gBloom's:g Understand
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
11) Interperiodgequitygrefersgtogthegconceptgthatgcurrent-
yeargrevenuesgaregsufficientgtogpaygforgservicesgprovidedgthatgyear,gsogthatgfuturegtaxpayersgwillg
notgbegrequiredgtogassumegthegburdengforgservicesgpreviouslygprovided.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g Objectivesgofgfinancialgreporting
LearninggObjective:g 01-
03gContrastgandgcomparegthegobjectivesgofgfinancialgreportinggforg(1)gstategandglocalggovern
ments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.gBloom's:g Understand
AACSB:g KnowledgegApplication
gAICPA:g FNgReporting
12) Thegminimumgrequirementsgforggeneralgpurposegexternalgfinancialgreportinggareg(1)gmanag
ement'sgdiscussiongandganalysisg(MD&A),g(2)gthegbasicgfinancialgstatements,gincludinggthegnotes
gtogthegfinancialgstatements,gandg(3)gcombininggandgindividualgfundgfinancialgstatements.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g FinancialgReportinggofgStategandgLocalgGovernments
LearninggObjective:g 01-
04gExplaingthegminimumgrequirementsgforggeneralgpurposegexternalgfinancialgreportinggforgstateg
andglocalggovernmentsgandghowgtheygrelategtogcomprehensivegannualgfinancialgreports.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g FNgReporting
4
ck,gSuzannegLowensohn,gEarlgWilson
AccountinggforgGovernmentalgandgNonprofitgEntities,g18eg(Reck)
Chapterg1g g IntroductiongtogAccountinggandgFinancialgReportinggforgGovernmentgand
gNot-for-ProfitgEntities
1) Specialgpurposeggovernmentsggenerallygprovidegagwidergrangegofgservicesgtogtheirgresidentsgtha
ngdoggeneralgpurposeggovernments.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
2) Examplesgofggeneralgpurposeggovernmentsgincludegcities,gtowns,gandgpublicgschoolsgthatgreceiv
egtaxgrevenuegtogfinancegthegservicesgtheygprovide.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
3) ThegGovernmentalgAccountinggStandardsgBoardg(GASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallgstategandglocalggovernments,gbothggeneralgpurposegandgspecial
gpurpose.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
1
,4) ThegGovernmentalgAccountinggStandardsgBoardg(GASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallggovernmentgentities.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
5) ThegFinancialgAccountinggStandardsgBoardg(FASB)gisgthegbodygauthorizedgtogestablis
hgaccountinggprinciplesgforgallgcollegesgandguniversitiesgandghealthgcaregentities.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
6) Neitherggovernmentsgnorgnot-for-
profitgentitiesghavegresidualgequitygthatgcangbegdistributedgtogowners.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g FNgReporting
2
,7) Agcharacteristicgcommongtoggovernmentsgandgnot-for-profitgorganizationsgisgthatgtheygdognot
existgtogprovideggoodsgorgservicesgatgagprofitgorgprofitgequivalent.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
8) Thegneedsgofgusersgofggovernmentgfinancialgreportsgaregthegsamegasgthosegofgusersgofgbusine
ssgentitygfinancialgreports.
Answer:g FALSEgDif
ficulty:g2gMedium
Topic:g g DistinguishinggGovernmentgandgNot-For-ProfitgOrganizations
LearninggObjective:g 01-
01gIdentifygandgexplaingthegcharacteristicsgthatgdistinguishggovernmentgandgnot-for-
profitgentitiesgfromgfor-profitgentities.
Bloom's:g g Understand
AACSB:g KnowledgegApplicationgAI
CPA:g BBgIndustry
9) ThegFederalgAccountinggStandardsgAdvisorygBoardg(FASAB)grecommendsgaccountin
ggprinciplesgandgstandardsgforgthegfederalggovernmentgandgitsgagenciesgandgdepartments.
Answer:g TRUEg
Difficulty:g1gEasy
Topic:g g Sourcesgofgfinancialgreportinggstandards
LearninggObjective:g 01-
02gIdentifygthegauthoritativegbodiesgresponsiblegforgsettinggfinancialgreportinggstandardsgfor
g(1)gstategandglocalggovernments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.
Bloom's:g g Remember
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
3
, 10) ThegFASB,gGASB,gandgFASABgallgfocusgtheirgstandardsgongbothginternalgandgexternalgfinanci
algreporting.
Answer:g FALSEgDif
ficulty:g2gMedium
Topic:g g Objectivesgofgfinancialgreporting
LearninggObjective:g 01-
03gContrastgandgcomparegthegobjectivesgofgfinancialgreportinggforg(1)gstategandglocalggovern
ments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.gBloom's:g Understand
AACSB:g KnowledgegApplication
gAICPA:g BBgIndustry
11) Interperiodgequitygrefersgtogthegconceptgthatgcurrent-
yeargrevenuesgaregsufficientgtogpaygforgservicesgprovidedgthatgyear,gsogthatgfuturegtaxpayersgwillg
notgbegrequiredgtogassumegthegburdengforgservicesgpreviouslygprovided.
Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g Objectivesgofgfinancialgreporting
LearninggObjective:g 01-
03gContrastgandgcomparegthegobjectivesgofgfinancialgreportinggforg(1)gstategandglocalggovern
ments,g(2)gthegfederalggovernment,gandg(3)gnot-for-
profitgorganizations.gBloom's:g Understand
AACSB:g KnowledgegApplication
gAICPA:g FNgReporting
12) Thegminimumgrequirementsgforggeneralgpurposegexternalgfinancialgreportinggareg(1)gmanag
ement'sgdiscussiongandganalysisg(MD&A),g(2)gthegbasicgfinancialgstatements,gincludinggthegnotes
gtogthegfinancialgstatements,gandg(3)gcombininggandgindividualgfundgfinancialgstatements.
Answer:g FALSE
gDifficulty:g1gEas
y
Topic:g g FinancialgReportinggofgStategandgLocalgGovernments
LearninggObjective:g 01-
04gExplaingthegminimumgrequirementsgforggeneralgpurposegexternalgfinancialgreportinggforgstateg
andglocalggovernmentsgandghowgtheygrelategtogcomprehensivegannualgfinancialgreports.
Bloom's:g g Remember
AACSB:g KnowledgegApplicationgAI
CPA:g FNgReporting
4
