TEST BANK
Accounting for Governmental & Nonprofit Entities
Jacqueline L. Reck
18th Edition
JN
U
R
SE
,Table of Contents
1. Introduction to Accounting and Financial Reporting for Government and Not-for-Profit
Entities
PART ONE: State and Local Governments
2. Principles of Accounting and Financial Reporting for State and Local Governments
3. Governmental Operating Statement Accounts; Budgetary Accounting
4. Accounting for Governmental Operating Activities — Illustrative Transactions and
Financial Statements
5. Accounting for General Capital Assets and Capital Projects
6. Accounting for General Long-Term Liabilities and Debt Service
7. Accounting for the Business-type Activities of State and Local Governments
8. Accounting for Fiduciary Activities — Custodial and Trust Funds
9. Financial Reporting of State and Local Governments
PART TWO: Accountability for Public Funds
10. Analysis of Government Financial Performance
JN
11. Auditing of Government and Not-for-Profit Organizations
12. Budgeting and Performance Measurement
PART THREE: Accounting and Financial Reporting for Not-for-Profit Organizations
and the Federal Government
U
13. Not-for-Profit Organizations — Regulatory, Taxation, and Performance Issues
14. Accounting for Not-for-Profit Organizations
15. Accounting for Colleges and Universities
R
16. Accounting for Health Care Organizations
17. Accounting and Reporting for the Federal Government
SE
Glossary
Index
,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.
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
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receive tax revenue to finance the services they provide.
Answer: TRUE
Difficulty: 1 Easy
Topic: Distinguishing Government and Not-For-Profit Organizations
U
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Remember
R
AACSB: Knowledge Application
AICPA: BB Industry
SE
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
, 4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.
Answer: FALSE
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
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
Answer: FALSE
JN
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.
U
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry
R
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
owners.
SE
Answer: TRUE
Difficulty: 2 Medium
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: Understand
AACSB: Knowledge Application
AICPA: FN Reporting
Accounting for Governmental & Nonprofit Entities
Jacqueline L. Reck
18th Edition
JN
U
R
SE
,Table of Contents
1. Introduction to Accounting and Financial Reporting for Government and Not-for-Profit
Entities
PART ONE: State and Local Governments
2. Principles of Accounting and Financial Reporting for State and Local Governments
3. Governmental Operating Statement Accounts; Budgetary Accounting
4. Accounting for Governmental Operating Activities — Illustrative Transactions and
Financial Statements
5. Accounting for General Capital Assets and Capital Projects
6. Accounting for General Long-Term Liabilities and Debt Service
7. Accounting for the Business-type Activities of State and Local Governments
8. Accounting for Fiduciary Activities — Custodial and Trust Funds
9. Financial Reporting of State and Local Governments
PART TWO: Accountability for Public Funds
10. Analysis of Government Financial Performance
JN
11. Auditing of Government and Not-for-Profit Organizations
12. Budgeting and Performance Measurement
PART THREE: Accounting and Financial Reporting for Not-for-Profit Organizations
and the Federal Government
U
13. Not-for-Profit Organizations — Regulatory, Taxation, and Performance Issues
14. Accounting for Not-for-Profit Organizations
15. Accounting for Colleges and Universities
R
16. Accounting for Health Care Organizations
17. Accounting and Reporting for the Federal Government
SE
Glossary
Index
,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.
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
JN
receive tax revenue to finance the services they provide.
Answer: TRUE
Difficulty: 1 Easy
Topic: Distinguishing Government and Not-For-Profit Organizations
U
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Remember
R
AACSB: Knowledge Application
AICPA: BB Industry
SE
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
, 4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.
Answer: FALSE
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
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
Answer: FALSE
JN
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.
U
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry
R
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
owners.
SE
Answer: TRUE
Difficulty: 2 Medium
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: Understand
AACSB: Knowledge Application
AICPA: FN Reporting
