TEST BANK FOR ACCOUNTING FOR
#gh #gh #gh #gh
GOVERNMENTAL & NONPROFIT
#gh #gh #gh
ENTITIES 18TH EDITION
#gh #gh #gh
JACQUELINE RECK, SUZANNE
#gh #gh #gh
LOWENSOHN, DANIEL NEELY
#gh #gh #gh
SCHOLARVAULT
,Accounting for Governmental and Nonprofit Entities, 18e (Reck)
Chapter 1 Introduction 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.
2) Examples of general purpose governments include cities, towns, and public schools that
receive tax revenue to finance the services they provide.
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.
4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
owners.
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.
8) The needs of users of government financial reports are the same as those of users of business
entity financial reports.
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.
10) The FASB, GASB, and FASAB all focus their standards on both internal and external
financial reporting.
11) Interperiod equity refers to the concept that current-year revenues are sufficient to pay for
services provided that year, so that future taxpayers will not be required to assume the burden for
services previously provided.
12) The minimum requirements for general purpose external financial reporting are (1)
management's discussion and analysis (MD&A), (2) the basic financial statements, including the
notes to the financial statements, and (3) combining and individual fund financial statements.
13) The Financial Accounting Foundation has oversight over both the FASB and the GASB.
14) In addition to financial statements and notes, the GASB requires governments to provide
information on service efforts and accomplishments (SEA) in their reports to the public.
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
SCHOLARVAULT
,15) Providing information on accountability is the primary financial reporting objective for both
governments #ghand #ghnot-for-profit #ghentities.
16) A #ghdifference #ghin #ghthe #ghfinancial #ghreporting #ghobjectives #ghfor #ghgovernment #ghentities #ghand
#ghnot-for-profit #ghentities #ghis #ghthat #ghgovernment #ghentities #ghreport #ghon #ghcompliance #ghwith #ghlaws,
#ghregulations, #ghand #ghrules #ghthat #ghimpact #ghfinancial #ghreports.
17) Since #ghneither #ghgovernments #ghnor #ghnot-for-profit #ghentities #ghhave #ghinvestors, #ghthe #ghfinancial
#ghreporting #ghobjectives #ghare #ghthe #ghsame #ghfor #ghboth #ghtypes #ghof #ghentities.
18) The #ghGASB #ghprovides #ghoptional #ghguidance #ghfor #ghthose #ghentities #ghproviding #ghservice
#ghefforts #ghand #ghaccomplishments #gh(SEA) #ghreports #ghto #ghthe #ghpublic.
19) The #ghOffice #ghof #ghManagement #ghand #ghBudget #gh(OMB) #ghrequires #ghmajor #ghfederal
#ghdepartments #ghand #ghagencies #ghto #ghprepare #ghan #ghannual #ghperformance #ghreport.
20) The #ghFASB #ghstandards #ghrequire #ghnot-for-profit #ghentities #ghto #ghreport #ghnet #ghassets #ghin #ghthree
#ghcategories: #ghunrestricted, #ghrestricted, #ghand #ghnet #ghinvestment #ghin #ghcapital #ghassets.
21) The #ghFASB #ghstandards #ghrequire #ghnot-for-profit #ghentities #ghto #ghseparately #ghreport #ghprogram
#ghexpenses #ghand #ghsupport #ghexpenses.
22) The #ghgovernmental #ghfund #ghfinancial #ghstatements #ghare #ghintended #ghto #ghreport #ghon #ghfiscal
#ghaccountability.
23) The #ghgovernmental #ghfund #ghfinancial #ghstatements #ghare #ghuseful #ghin #ghassessing
#ghoperational #ghaccountability.
24) Government-wide #ghfinancial #ghstatements #ghare #ghprepared #ghusing #ghthe #ghaccrual #ghbasis #ghof
#ghaccounting.
25) Both #ghthe #ghGASB #ghand #ghthe #ghFASB #ghrequire #ghentities #ghto #ghinclude #gha #ghmanagement
#ghdiscussion #ghand #ghanalysis #ghin #ghthe #ghfinancial #ghreports.
26) Similar #ghto #ghfor-profit #ghentities, #ghnet #ghincome #ghserves #ghas #gha #ghgood #ghmeasure #ghof #gha
#ghgovernment's #ghperformance.
27) The #ghGovernmental #ghAccounting #ghStandards #ghBoard #ghis #ghassigned #ghresponsibility
#ghfor #ghsetting #ghaccounting #ghand #ghfinancial #ghreporting #ghstandards #ghfor
A) Governments #ghsuch #ghas #ghfederal #ghagencies, #ghstates, #ghcities, #ghcounties, #ghvillages, #ghand #ghtownships.
B) State #ghand #ghlocal #ghgovernment #ghentities #ghand #ghgovernmentally-related #ghunits #ghand
#ghagencies, #ghsuch #ghas #ghutilities, #ghauthorities, #ghhospitals, #ghand #ghcolleges #ghand #ghuniversities.
C) Not-for-profit #ghorganizations.
D) State #ghand #ghlocal #ghgovernments #ghand #ghall #ghnot-for-profit #ghorganizations.
2
Copyright #gh© #gh2019 #ghMcGraw-Hill #ghEducation. #ghAll #ghrights #ghreserved.
No #ghreproduction #ghor #ghdistribution #ghwithout #ghthe #ghprior #ghwritten #ghconsent #ghof #ghMcGraw-
Hill #ghEducation.
SCHOLARVAULT
, 28) The #ghbody #ghthat #ghhas #ghbeen #ghestablished #ghto #ghrecommend #ghaccounting #ghand
#ghfinancial #ghreporting #ghstandards #ghfor #ghthe #ghfederal #ghgovernment #ghis #ghthe
A) Financial #ghAccounting #ghStandards #ghBoard #gh(FASB).
B) Governmental #ghAccounting #ghStandards #ghBoard #gh(GASB).
C) Federal #ghAccounting #ghFoundation #gh(FAF).
D) Federal #ghAccounting #ghStandards #ghAdvisory #ghBoard #gh(FASAB).
29) The #ghFinancial #ghAccounting #ghStandards #ghBoard #ghhas #ghthe #ghresponsibility #ghfor #ghsetting
#ghaccounting #ghand #ghfinancial #ghreporting #ghstandards #ghfor
A) All #ghnot-for-profit #ghorganizations #ghthat #ghare #ghnongovernmental #ghand #ghbusiness #ghentities.
B) All #ghnot-for-profit #ghorganizations #ghand #ghbusiness #ghentities.
C) All #ghnot-for-profit #ghorganizations.
D) Special #ghpurpose #ghgovernments #ghwith #gha #ghbusiness #ghpurpose.
30) You #ghare #ghtrying #ghto #ghdecide #ghif #ghan #ghentity #ghyou #ghare #ghreviewing #ghis #gha #ghgovernment #ghor
#gha #ghnot-for-profit. #ghWhich #ghof #ghthe #ghfollowing #ghwould #ghindicate #ghit #ghis #gha #ghgovernment
#ghrather #ghthan #gha #ghnot-for-profit #ghentity?
A) Absence #ghof #ghprofit #ghmotive.
B) A #ghprimary #ghsource #ghof #ghrevenues #ghis #ghtaxes.
C) Resource #ghproviders #ghdo #ghnot #ghexpect #ghbenefits #ghproportional #ghto #ghthe #ghresources #ghprovided.
D) Absence #ghof #gha #ghdefined #ghownership #ghinterest #ghthat #ghcan #ghbe #ghsold, #ghtransferred, #ghor #ghredeemed.
31) Which #ghof #ghthe #ghfollowing #ghis #ghidentified #ghby#ghthe #ghGASB #ghas #ghthe #gh"cornerstone" #ghof #ghall
#ghfinancial #ghreporting #ghin #ghgovernment?
A) Decision #ghusefulness.
B) Stewardship.
C) Accountability.
D) Interperiod #ghequity.
32) Which #ghof #ghthe #ghfollowing #ghorganizations #ghissue #ghstandards #ghthat #ghfocus #ghon #ghboth #ghinternal
#ghand #ghexternal #ghfinancial #ghreporting?
A) Federal #ghAccounting #ghStandards #ghAdvisory #ghBoard.
B) Governmental #ghAccounting #ghStandards #ghBoard.
C) Financial #ghAccounting #ghStandards #ghBoard.
D) American #ghInstitute #ghof #ghCPAs.
33) Which #ghof #ghthe #ghfollowing #ghis #ghidentified #ghby #ghthe #ghFASAB #ghas #ghthe #ghfoundation #ghfor
#ghfederal #ghfinancial #ghreporting?
A) Decision #ghusefulness.
B) Accountability.
C) Understandability.
D) Budget #ghintegrity.
3
Copyright #gh© #gh2019 #ghMcGraw-Hill #ghEducation. #ghAll #ghrights #ghreserved.
No #ghreproduction #ghor #ghdistribution #ghwithout #ghthe #ghprior #ghwritten #ghconsent #ghof #ghMcGraw-
Hill #ghEducation.
SCHOLARVAULT
#gh #gh #gh #gh
GOVERNMENTAL & NONPROFIT
#gh #gh #gh
ENTITIES 18TH EDITION
#gh #gh #gh
JACQUELINE RECK, SUZANNE
#gh #gh #gh
LOWENSOHN, DANIEL NEELY
#gh #gh #gh
SCHOLARVAULT
,Accounting for Governmental and Nonprofit Entities, 18e (Reck)
Chapter 1 Introduction 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.
2) Examples of general purpose governments include cities, towns, and public schools that
receive tax revenue to finance the services they provide.
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.
4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
owners.
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.
8) The needs of users of government financial reports are the same as those of users of business
entity financial reports.
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.
10) The FASB, GASB, and FASAB all focus their standards on both internal and external
financial reporting.
11) Interperiod equity refers to the concept that current-year revenues are sufficient to pay for
services provided that year, so that future taxpayers will not be required to assume the burden for
services previously provided.
12) The minimum requirements for general purpose external financial reporting are (1)
management's discussion and analysis (MD&A), (2) the basic financial statements, including the
notes to the financial statements, and (3) combining and individual fund financial statements.
13) The Financial Accounting Foundation has oversight over both the FASB and the GASB.
14) In addition to financial statements and notes, the GASB requires governments to provide
information on service efforts and accomplishments (SEA) in their reports to the public.
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
SCHOLARVAULT
,15) Providing information on accountability is the primary financial reporting objective for both
governments #ghand #ghnot-for-profit #ghentities.
16) A #ghdifference #ghin #ghthe #ghfinancial #ghreporting #ghobjectives #ghfor #ghgovernment #ghentities #ghand
#ghnot-for-profit #ghentities #ghis #ghthat #ghgovernment #ghentities #ghreport #ghon #ghcompliance #ghwith #ghlaws,
#ghregulations, #ghand #ghrules #ghthat #ghimpact #ghfinancial #ghreports.
17) Since #ghneither #ghgovernments #ghnor #ghnot-for-profit #ghentities #ghhave #ghinvestors, #ghthe #ghfinancial
#ghreporting #ghobjectives #ghare #ghthe #ghsame #ghfor #ghboth #ghtypes #ghof #ghentities.
18) The #ghGASB #ghprovides #ghoptional #ghguidance #ghfor #ghthose #ghentities #ghproviding #ghservice
#ghefforts #ghand #ghaccomplishments #gh(SEA) #ghreports #ghto #ghthe #ghpublic.
19) The #ghOffice #ghof #ghManagement #ghand #ghBudget #gh(OMB) #ghrequires #ghmajor #ghfederal
#ghdepartments #ghand #ghagencies #ghto #ghprepare #ghan #ghannual #ghperformance #ghreport.
20) The #ghFASB #ghstandards #ghrequire #ghnot-for-profit #ghentities #ghto #ghreport #ghnet #ghassets #ghin #ghthree
#ghcategories: #ghunrestricted, #ghrestricted, #ghand #ghnet #ghinvestment #ghin #ghcapital #ghassets.
21) The #ghFASB #ghstandards #ghrequire #ghnot-for-profit #ghentities #ghto #ghseparately #ghreport #ghprogram
#ghexpenses #ghand #ghsupport #ghexpenses.
22) The #ghgovernmental #ghfund #ghfinancial #ghstatements #ghare #ghintended #ghto #ghreport #ghon #ghfiscal
#ghaccountability.
23) The #ghgovernmental #ghfund #ghfinancial #ghstatements #ghare #ghuseful #ghin #ghassessing
#ghoperational #ghaccountability.
24) Government-wide #ghfinancial #ghstatements #ghare #ghprepared #ghusing #ghthe #ghaccrual #ghbasis #ghof
#ghaccounting.
25) Both #ghthe #ghGASB #ghand #ghthe #ghFASB #ghrequire #ghentities #ghto #ghinclude #gha #ghmanagement
#ghdiscussion #ghand #ghanalysis #ghin #ghthe #ghfinancial #ghreports.
26) Similar #ghto #ghfor-profit #ghentities, #ghnet #ghincome #ghserves #ghas #gha #ghgood #ghmeasure #ghof #gha
#ghgovernment's #ghperformance.
27) The #ghGovernmental #ghAccounting #ghStandards #ghBoard #ghis #ghassigned #ghresponsibility
#ghfor #ghsetting #ghaccounting #ghand #ghfinancial #ghreporting #ghstandards #ghfor
A) Governments #ghsuch #ghas #ghfederal #ghagencies, #ghstates, #ghcities, #ghcounties, #ghvillages, #ghand #ghtownships.
B) State #ghand #ghlocal #ghgovernment #ghentities #ghand #ghgovernmentally-related #ghunits #ghand
#ghagencies, #ghsuch #ghas #ghutilities, #ghauthorities, #ghhospitals, #ghand #ghcolleges #ghand #ghuniversities.
C) Not-for-profit #ghorganizations.
D) State #ghand #ghlocal #ghgovernments #ghand #ghall #ghnot-for-profit #ghorganizations.
2
Copyright #gh© #gh2019 #ghMcGraw-Hill #ghEducation. #ghAll #ghrights #ghreserved.
No #ghreproduction #ghor #ghdistribution #ghwithout #ghthe #ghprior #ghwritten #ghconsent #ghof #ghMcGraw-
Hill #ghEducation.
SCHOLARVAULT
, 28) The #ghbody #ghthat #ghhas #ghbeen #ghestablished #ghto #ghrecommend #ghaccounting #ghand
#ghfinancial #ghreporting #ghstandards #ghfor #ghthe #ghfederal #ghgovernment #ghis #ghthe
A) Financial #ghAccounting #ghStandards #ghBoard #gh(FASB).
B) Governmental #ghAccounting #ghStandards #ghBoard #gh(GASB).
C) Federal #ghAccounting #ghFoundation #gh(FAF).
D) Federal #ghAccounting #ghStandards #ghAdvisory #ghBoard #gh(FASAB).
29) The #ghFinancial #ghAccounting #ghStandards #ghBoard #ghhas #ghthe #ghresponsibility #ghfor #ghsetting
#ghaccounting #ghand #ghfinancial #ghreporting #ghstandards #ghfor
A) All #ghnot-for-profit #ghorganizations #ghthat #ghare #ghnongovernmental #ghand #ghbusiness #ghentities.
B) All #ghnot-for-profit #ghorganizations #ghand #ghbusiness #ghentities.
C) All #ghnot-for-profit #ghorganizations.
D) Special #ghpurpose #ghgovernments #ghwith #gha #ghbusiness #ghpurpose.
30) You #ghare #ghtrying #ghto #ghdecide #ghif #ghan #ghentity #ghyou #ghare #ghreviewing #ghis #gha #ghgovernment #ghor
#gha #ghnot-for-profit. #ghWhich #ghof #ghthe #ghfollowing #ghwould #ghindicate #ghit #ghis #gha #ghgovernment
#ghrather #ghthan #gha #ghnot-for-profit #ghentity?
A) Absence #ghof #ghprofit #ghmotive.
B) A #ghprimary #ghsource #ghof #ghrevenues #ghis #ghtaxes.
C) Resource #ghproviders #ghdo #ghnot #ghexpect #ghbenefits #ghproportional #ghto #ghthe #ghresources #ghprovided.
D) Absence #ghof #gha #ghdefined #ghownership #ghinterest #ghthat #ghcan #ghbe #ghsold, #ghtransferred, #ghor #ghredeemed.
31) Which #ghof #ghthe #ghfollowing #ghis #ghidentified #ghby#ghthe #ghGASB #ghas #ghthe #gh"cornerstone" #ghof #ghall
#ghfinancial #ghreporting #ghin #ghgovernment?
A) Decision #ghusefulness.
B) Stewardship.
C) Accountability.
D) Interperiod #ghequity.
32) Which #ghof #ghthe #ghfollowing #ghorganizations #ghissue #ghstandards #ghthat #ghfocus #ghon #ghboth #ghinternal
#ghand #ghexternal #ghfinancial #ghreporting?
A) Federal #ghAccounting #ghStandards #ghAdvisory #ghBoard.
B) Governmental #ghAccounting #ghStandards #ghBoard.
C) Financial #ghAccounting #ghStandards #ghBoard.
D) American #ghInstitute #ghof #ghCPAs.
33) Which #ghof #ghthe #ghfollowing #ghis #ghidentified #ghby #ghthe #ghFASAB #ghas #ghthe #ghfoundation #ghfor
#ghfederal #ghfinancial #ghreporting?
A) Decision #ghusefulness.
B) Accountability.
C) Understandability.
D) Budget #ghintegrity.
3
Copyright #gh© #gh2019 #ghMcGraw-Hill #ghEducation. #ghAll #ghrights #ghreserved.
No #ghreproduction #ghor #ghdistribution #ghwithout #ghthe #ghprior #ghwritten #ghconsent #ghof #ghMcGraw-
Hill #ghEducation.
SCHOLARVAULT
