TEST BANK for Essentials of Accounting for Governmental and Not-for-Profit Organizations 15 edition Paul Copley All Chapters 1 to 14 Covered ||Complete A+ Guide

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TEST BANK

for Essentials of Accounting for Governmental and Not-for-

Profit Organizations 15 edition Paul Copley All Chapters 1 to 14

Covered ||Complete A+ Guide

, TEST BANK for Essentials of Accounting for Governmental and Not-for-Profit
Organizations 15 edition Paul Copley All Chapters 1 to 14 Covered ||Complete A+
Guide

Chap 01 15e Copley
1) The Governmental Accounting Standards Board sets financial reporting standards for all
units of government: federal, state, and local.
⊚ true
⊚ false



2) Fund accounting exists primarily to provide assurance that resources are used according to
legal or donor restrictions.
⊚ true
⊚ false



3) The Financial Accounting Standards Board sets financial reporting standards for profit-
seeking businesses and nongovernmental, not-for-profit organizations.
⊚ true
⊚ false



4) FASAB, GASB, and FASB standards are set forth primarily in documents called statements.
⊚ true
⊚ false



5) FASAB, GASB, and FASB reporting standards are set forth primarily in documents called
concept statements.
⊚ true
⊚ false



6) The FASAB was established to recommend accounting and financial reporting standards for
the federal government.
⊚ true
⊚ false




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,7) The GASB does not require supplementary information to be reported with its financial
statements even if it is essential to establish appropriate context for the financial statements
and notes.
⊚ true
⊚ false



8) The Financial Accounting Standards Board sets financial reporting standards for private not-
for-profits and investor-owned businesses.
⊚ true
⊚ false



9) An organization is presumed to be governmental if it has the ability to issue directly debt that
is exempt from federal taxes.
⊚ true
⊚ false



10) The Financial Accounting Standards Board and the Governmental Accounting Standards
Board are parallel bodies under the oversight of the Financial Accounting Foundation.
⊚ true
⊚ false



11) The Federal Accounting Standards Advisory Board requires less extensive reports than does
the FASB or GASB.
⊚ true
⊚ false



12) The FASAB requires more financial statements than are typically required of state and local
governments.
⊚ true
⊚ false




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, 13) Governments must have as many funds as necessary to fulfill legal requirements and sound
financial administration but must have at a minimum a General Fund.
⊚ true
⊚ false



14) A Management's Discussion and Analysis is required for state and local governmental units,
and the federal government.
⊚ true
⊚ false



15) Although certain supplementary information may not be required, if presented, it must
follow GASB guidance regarding its format and content.
⊚ true
⊚ false



16) The format and content of supplementary information which is not required by GASB is up
to the discretion of the reporting entity.
⊚ true
⊚ false



17) GASB and FASB Concept Statements establish accounting standards that must be complied
with to receive an unqualified audit opinion.
⊚ true
⊚ false



18) FASAB, GASB, and FASB standards are set forth primarily in documents called
interpretations.
⊚ true
⊚ false




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