Essentials of Governmental and Not-for-Profit Accounting Test Bank – 15th Edition – 2025/2026

TEST BANK FOR
g g


EssentialsgofgAccountinggforgGovernmentalgandgNot-for-ProfitgOrganizationsg15eCopleyg-
Chapterg1-14


Chapg01g15egCopley AnswersgIncluded ✅
1) ThegGovernmentalgAccountinggStandardsgBoardgsetsgfinancialgreportinggstandardsgforgal
lgunitsgofggovernment:gfederal,gstate,gandglocal.
⊚g true
⊚g false



2) Fundgaccountinggexistsgprimarilygtogprovidegassurancegthatgresourcesgaregusedgaccordinggt
oglegalgorgdonorgrestrictions.
⊚g true
⊚g false



3) ThegFinancialgAccountinggStandardsgBoardgsetsgfinancialgreportinggstandardsgforgprofit
-gseekinggbusinessesgandgnongovernmental,gnot-for-profitgorganizations.
⊚g true
⊚g false



4) FASAB,gGASB,gandgFASBgstandardsgaregsetgforthgprimarilygingdocumentsgcalledgstatements.
⊚g true
⊚g false



5) FASAB,gGASB,gandgFASBgreportinggstandardsgaregsetgforthgprimarilygingdocumentsgcalle
dgconceptgstatements.
⊚g true
⊚g false



6) ThegFASABgwasgestablishedgtogrecommendgaccountinggandgfinancialgreportinggstandardsgfo
rgthegfederalggovernment.
⊚g true
⊚g false

,7) ThegGASBgdoesgnotgrequiregsupplementaryginformationgtogbegreportedgwithgitsgfinancialgs
tatementsgevengifgitgisgessentialgtogestablishgappropriategcontextgforgthegfinancialgstatements
gandgnotes.

⊚g true
⊚g false



8) ThegFinancialgAccountinggStandardsgBoardgsetsgfinancialgreportinggstandardsgforgprivategnot
-gfor-profitsgandginvestor-ownedgbusinesses.
⊚g true
⊚g false



9) Angorganizationgisgpresumedgtogbeggovernmentalgifgitghasgthegabilitygtogissuegdirectlygdebtgth
atgisgexemptgfromgfederalgtaxes.
⊚g true
⊚g false



10) ThegFinancialgAccountinggStandardsgBoardgandgthegGovernmentalgAccountinggStandard
sgBoardgaregparallelgbodiesgundergthegoversightgofgthegFinancialgAccountinggFoundation
.
⊚g true
⊚g false



11) ThegFederalgAccountinggStandardsgAdvisorygBoardgrequiresglessgextensivegreportsgthangdoe
sgthegFASBgorgGASB.
⊚g true
⊚g false



12) ThegFASABgrequiresgmoregfinancialgstatementsgthangaregtypicallygrequiredgofgstategandgloc
alggovernments.
⊚g true
⊚g false

,13) Governmentsgmustghavegasgmanygfundsgasgnecessarygtogfulfillglegalgrequirementsgandgsoun
dgfinancialgadministrationgbutgmustghavegatgagminimumgagGeneralgFund.
⊚g true
⊚g false



14) AgManagement'sgDiscussiongandgAnalysisgisgrequiredgforgstategandglocalggovernmentalgunit
s,gandgthegfederalggovernment.
⊚g true
⊚g false



15) Althoughgcertaingsupplementaryginformationgmaygnotgbegrequired,gifgpresented,gitgmus
tgfollowgGASBgguidancegregardinggitsgformatgandgcontent.
⊚g true
⊚g false



16) ThegformatgandgcontentgofgsupplementaryginformationgwhichgisgnotgrequiredgbygGASBgisgu
pgtogthegdiscretiongofgthegreportinggentity.
⊚g true
⊚g false



17) GASBgandgFASBgConceptgStatementsgestablishgaccountinggstandardsgthatgmustgbegcomplie
dgwithgtogreceivegangunqualifiedgauditgopinion.
⊚g true
⊚g false



18) FASAB,gGASB,gandgFASBgstandardsgaregsetgforthgprimarilygingdocumentsgcalle
dginterpretations.
⊚g true
⊚g false

, 19) Fund-
basisgstatementsgaregpresentedgforgthreegcategoriesgofggovernmentgactivities:ggov
ernmental,gproprietary,gandgfiduciary.
⊚g true
⊚g false



20) Stategandglocalggovernmentsgmaygusegasgmanygasgtwelvegdifferentgfundgtypes.
⊚g true
⊚g false



21) Thegeconomicgresourcegmeasurementgfocusgandgaccrualgbasisgisgangimportantgfeaturego
fggovernment-widegfinancialgstatements.
⊚g true
⊚g false



22) Businesslikegactivitygfund-
basisgstatementsgmustgbegchangedgtogthegaccrualgbasisgfromgthegmodifiedgaccrualgbasisgw
hengpreparingggovernment-widegfinancialgstatements.
⊚g true
⊚g false



23) Governmental-typegactivitygfund-
basisgstatementsgmustgusegaccrualgbasisgwhengpreparingggovernment-
widegfinancialgstatements.
⊚g true
⊚g false



24) Fiduciarygfundsgofgaggovernmentalgunitgusegthegcurrentgfinancialgresourcesgmeasuremen
tgfocusgandgmodifiedgaccrualgbasisgofgaccounting.
⊚g true
⊚g false



25) Undergthegaccrualgbasisgofgaccounting,grevenuesgaregrecognizedgwhengmeasurablegan
dgavailablegtogfinancegexpendituresgofgthegcurrentgperiod.
⊚g true
⊚g false