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M
ED
ST
Test Bank For Accounting for Governmental &
Nonprofit Entities [Answers at the end] A+
U
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
D
Y
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
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3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
M
4) Why should persons interested in reading financial reports of governments and not-for-
ED
profit entities be familiar with standards set by the GASB and the FASB?
ST
U
D
Y
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5) Explain gin gyour gown gwords gwhygaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
M
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave gfor g financial greports gof gstate gand glocal ggovernments. gFor gcontrast, gstate gthe guses
ED
gthe gFASB gbelieves g external gusers ghave gfor gthe gfinancial greports gof gnot-for-profit
gorganizations.
ST
U
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g(CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting gfor gstate gand glocal
D
ggovernments.
Y
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountabilitygreport g (PAR) gthat gthe gOffice gof gManagement gand gBudget grequires gmajor
gfederal gdepartments gand g agencies gto gprepare.
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9) Explain gthe gconcepts gof gfiscal gand goperational gaccountabilitygand gthe gbasis gof
gaccounting g used gto gcapture geach gconcept.
M
ED
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report gand gwhich gcomponents gof gthe gorganization gshould git ginclude? gIs ga gCAFR
ST
grequired?
U
D
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
Y
gsetting g accounting gand gfinancial greporting gstandards gfor gwhich gof gthe gfollowing?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
Version 1 4
M
ED
ST
Test Bank For Accounting for Governmental &
Nonprofit Entities [Answers at the end] A+
U
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
D
Y
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
Version 1 1
,Medstudy.com
3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
M
4) Why should persons interested in reading financial reports of governments and not-for-
ED
profit entities be familiar with standards set by the GASB and the FASB?
ST
U
D
Y
Version 1 2
,Medstudy.com
5) Explain gin gyour gown gwords gwhygaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
M
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave gfor g financial greports gof gstate gand glocal ggovernments. gFor gcontrast, gstate gthe guses
ED
gthe gFASB gbelieves g external gusers ghave gfor gthe gfinancial greports gof gnot-for-profit
gorganizations.
ST
U
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g(CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting gfor gstate gand glocal
D
ggovernments.
Y
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountabilitygreport g (PAR) gthat gthe gOffice gof gManagement gand gBudget grequires gmajor
gfederal gdepartments gand g agencies gto gprepare.
Version 1 3
, Medstudy.com
9) Explain gthe gconcepts gof gfiscal gand goperational gaccountabilitygand gthe gbasis gof
gaccounting g used gto gcapture geach gconcept.
M
ED
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report gand gwhich gcomponents gof gthe gorganization gshould git ginclude? gIs ga gCAFR
ST
grequired?
U
D
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
Y
gsetting g accounting gand gfinancial greporting gstandards gfor gwhich gof gthe gfollowing?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
Version 1 4
