TEST BANK $er
For
Accounting for Governmental & Nonprofit Entities 18th Edition
$er $er $er $er $er $er $er
by Jacqueline L. Reck, Suzanne Lowensohn
$er $er $er $er $er
♦️♦️♦️All $ e r Chapters $ e r Included $ e r ✅✅✅
♦️♦️♦️All Answers Included
$ e r $ e r $ e r ✅✅✅
,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
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
AACSB: Knowledge Application
AICPA: BB Industry
2) Examples of general-purpose governments include cities, towns, and public schools that receive
tax revenue to finance the services they provide.
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
AACSB: Knowledge Application
AICPA: BB Industry
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.
Answer: TRUE
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
AICPA: BB Industry All Chapters Included ⬛⬛⬛
All Answers Included ⬛⬛⬛
,4) The $erGovernmental $erAccounting $erStandards $erBoard $er(GASB) $eris $erthe $erbody $erauthorized $erto
$erestablish $eraccounting $erprinciples $erfor $erall $ergovernment $erentities.
Answer:
$ e r FALSE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
5) The $erFinancial $erAccounting $erStandards $erBoard $er(FASB) $eris $erthe $erbody $erauthorized $erto
$erestablish $eraccounting $erprinciples $erfor $erall $ercolleges $erand $eruniversities $erand $erhealth
$ercare $erentities.
Answer:
$ e r FALSE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
6) Neither $ergovernments $ernor $ernot-for-profit $erentities $erhave $erresidual $erequity $erthat $ercan $erbe
$erdistributed $erto $erowners.
Answer: $ e r TRUE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r FN $erReporting
, 7) A $ercharacteristic $ercommon $erto $ergovernments $erand $ernot-for-profit $erorganizations $eris $erthat $erthey $erdo
$ernot
exist $erto $erprovide $ergoods $eror $erservices $erat $era $erprofit $eror $erprofit $erequivalent.
Answer: $ e r TRUE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r BB $erIndustry
8) The $erneeds $erof $erusers $erof $ergovernment $erfinancial $erreports $erare $erthe $ersame $eras $erthose $erof $erusers
$erof $erbusiness $erentity $erfinancial $erreports.
Answer: $ e r FALSE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r BB $erIndustry
9) The $erFederal $erAccounting $erStandards $erAdvisory $erBoard $er(FASAB) $errecommends
$eraccounting $erprinciples $erand $erstandards $erfor $erthe $erfederal $ergovernment $erand $erits
$eragencies $erand $erdepartments.
Answer:
$ e r TRUE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
For
Accounting for Governmental & Nonprofit Entities 18th Edition
$er $er $er $er $er $er $er
by Jacqueline L. Reck, Suzanne Lowensohn
$er $er $er $er $er
♦️♦️♦️All $ e r Chapters $ e r Included $ e r ✅✅✅
♦️♦️♦️All Answers Included
$ e r $ e r $ e r ✅✅✅
,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
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
AACSB: Knowledge Application
AICPA: BB Industry
2) Examples of general-purpose governments include cities, towns, and public schools that receive
tax revenue to finance the services they provide.
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
AACSB: Knowledge Application
AICPA: BB Industry
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.
Answer: TRUE
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
AICPA: BB Industry All Chapters Included ⬛⬛⬛
All Answers Included ⬛⬛⬛
,4) The $erGovernmental $erAccounting $erStandards $erBoard $er(GASB) $eris $erthe $erbody $erauthorized $erto
$erestablish $eraccounting $erprinciples $erfor $erall $ergovernment $erentities.
Answer:
$ e r FALSE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
5) The $erFinancial $erAccounting $erStandards $erBoard $er(FASB) $eris $erthe $erbody $erauthorized $erto
$erestablish $eraccounting $erprinciples $erfor $erall $ercolleges $erand $eruniversities $erand $erhealth
$ercare $erentities.
Answer:
$ e r FALSE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
6) Neither $ergovernments $ernor $ernot-for-profit $erentities $erhave $erresidual $erequity $erthat $ercan $erbe
$erdistributed $erto $erowners.
Answer: $ e r TRUE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r FN $erReporting
, 7) A $ercharacteristic $ercommon $erto $ergovernments $erand $ernot-for-profit $erorganizations $eris $erthat $erthey $erdo
$ernot
exist $erto $erprovide $ergoods $eror $erservices $erat $era $erprofit $eror $erprofit $erequivalent.
Answer: $ e r TRUE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r BB $erIndustry
8) The $erneeds $erof $erusers $erof $ergovernment $erfinancial $erreports $erare $erthe $ersame $eras $erthose $erof $erusers
$erof $erbusiness $erentity $erfinancial $erreports.
Answer: $ e r FALSE
$erDifficulty: $er2
$erMedium
Topic: $ e r Distinguishing $erGovernment $erand $erNot-For-Profit $erOrganizations
Learning $erObjective: $ e r 01-01 $erIdentify $erand $erexplain $erthe $ercharacteristics $erthat $erdistinguish
$ergovernment $erand $ernot-for-profit $erentities $erfrom $erfor-profit $erentities.
Bloom's: $ e r $ e r Understand
AACSB: $er Knowledge $erApplication
$erAICPA: $ e r BB $erIndustry
9) The $erFederal $erAccounting $erStandards $erAdvisory $erBoard $er(FASAB) $errecommends
$eraccounting $erprinciples $erand $erstandards $erfor $erthe $erfederal $ergovernment $erand $erits
$eragencies $erand $erdepartments.
Answer:
$ e r TRUE
$erDifficulty: $er1
$erEasy
Topic: $ e r $ e r Sources $erof $erfinancial $erreporting $erstandards
Learning $erObjective: $ e r 01-02 $erIdentify $erthe $erauthoritative $erbodies $erresponsible $erfor $ersetting
$erfinancial $erreporting $erstandards $erfor $er(1) $erstate $erand $erlocal $ergovernments, $er(2) $erthe $erfederal
$ergovernment, $erand $er(3) $ernot-for-profit $erorganizations.
Bloom's: $ e r $ e r Remember
AACSB: $erKnowledge
$erApplication $erAICPA: $ e r BB
$erIndustry
