TEST BANK FOR GOVERNMENT AND NOT-FOR-
PROFIT ACCOUNTING: CONCEPTS AND
PRACTICES, 10TH EDITION BY MICHAEL H.
GRANOF LATEST UPDATE 2026 A+
1
, TABLE OF CONTENTS
Chapter 1: The Government and Not‐for‐Profit Environment
Chapter 2: Fund Accounting
Chapter 3: Issues of Budgeting and Control
Chapter 4: Recognizing Revenues in Governmental Funds
Chapter 5: Recognizing Expenditures in Governmental Funds
Chapter 6: Accounting for Capital Projects and Debt Service
Chapter 7: Capital Assets and Investments in Marketable Securities
Chapter 8: Long‐Term Obligations
Chapter 9: Business‐Type Activities
Chapter 10: Pensions and Other Fiduciary Activities
Chapter 11: Issues of Reporting, Disclosure, and Financial Analysis
Chapter 12: Not‐for‐Profit Organizations
Chapter 13: Colleges and Universities
Chapter 14: Health‐Care Providers
Chapter 15: Auditing Governments and Not‐for‐Profit Organizations
Chapter 16: Federal Government Accounting
Chapter 17: Managing for Results
2
,Test Bank For Government And Not-For-Profit Accounting: Concepts And
Practices, 10th Edition By Michael H. Granof
Chapter 1
The Government And Not-For-Profit Environment
TRUE/FALSE (CHAPTER 1)
1. The Objectives Of A Typical Government Or Not-For-Profit Entity Include Abstract Goals
That Are More Difficult To Quantify Than Profit.
2. A Government‟s Budget May Be Backed By The Force Of Law.
3. Governments Have No Need For An Accounting System.
4. A Government‟s Constituents Rely On General Purpose Financial Statements For A
Considerable Amount Of Information About Their Government.
5. Governments And Not-For-Profit Entities May Never Engage In Business-Type
Activities.
6. Lenders Use The Financial Statements Of Governments And Not-For-Profit Entities
Just As They Would Those Of Businesses, That Is, To Help Assess The Borrower‟s
Credit-Worthiness.
7. Financial Statements, No Matter How Prepared, Do Not Directly Affect The
Economic Worth Of An Entity.
8. The Federal Accounting Standards Advisory Board‟s Standards Do Not Apply To The
Federal Department Of The Treasury.
9. Sarbanes-Oxley Was Passed In 2002 With The Sole Purpose Of Enhancing The
Independence Of The GASB.
10. The Governmental Accounting Standards Board Establishes Generally Accepted
Accounting Principles For All State And Local Governments And All Not-For-Profit
Entities.
3
, ANSWERS TO TRUE/FALSE QUESTIONS (CHAPTER 1)
1. True
2. True
3. False
4. True
5. False
6. True
7. True
8. False
9. False
10. False
4
PROFIT ACCOUNTING: CONCEPTS AND
PRACTICES, 10TH EDITION BY MICHAEL H.
GRANOF LATEST UPDATE 2026 A+
1
, TABLE OF CONTENTS
Chapter 1: The Government and Not‐for‐Profit Environment
Chapter 2: Fund Accounting
Chapter 3: Issues of Budgeting and Control
Chapter 4: Recognizing Revenues in Governmental Funds
Chapter 5: Recognizing Expenditures in Governmental Funds
Chapter 6: Accounting for Capital Projects and Debt Service
Chapter 7: Capital Assets and Investments in Marketable Securities
Chapter 8: Long‐Term Obligations
Chapter 9: Business‐Type Activities
Chapter 10: Pensions and Other Fiduciary Activities
Chapter 11: Issues of Reporting, Disclosure, and Financial Analysis
Chapter 12: Not‐for‐Profit Organizations
Chapter 13: Colleges and Universities
Chapter 14: Health‐Care Providers
Chapter 15: Auditing Governments and Not‐for‐Profit Organizations
Chapter 16: Federal Government Accounting
Chapter 17: Managing for Results
2
,Test Bank For Government And Not-For-Profit Accounting: Concepts And
Practices, 10th Edition By Michael H. Granof
Chapter 1
The Government And Not-For-Profit Environment
TRUE/FALSE (CHAPTER 1)
1. The Objectives Of A Typical Government Or Not-For-Profit Entity Include Abstract Goals
That Are More Difficult To Quantify Than Profit.
2. A Government‟s Budget May Be Backed By The Force Of Law.
3. Governments Have No Need For An Accounting System.
4. A Government‟s Constituents Rely On General Purpose Financial Statements For A
Considerable Amount Of Information About Their Government.
5. Governments And Not-For-Profit Entities May Never Engage In Business-Type
Activities.
6. Lenders Use The Financial Statements Of Governments And Not-For-Profit Entities
Just As They Would Those Of Businesses, That Is, To Help Assess The Borrower‟s
Credit-Worthiness.
7. Financial Statements, No Matter How Prepared, Do Not Directly Affect The
Economic Worth Of An Entity.
8. The Federal Accounting Standards Advisory Board‟s Standards Do Not Apply To The
Federal Department Of The Treasury.
9. Sarbanes-Oxley Was Passed In 2002 With The Sole Purpose Of Enhancing The
Independence Of The GASB.
10. The Governmental Accounting Standards Board Establishes Generally Accepted
Accounting Principles For All State And Local Governments And All Not-For-Profit
Entities.
3
, ANSWERS TO TRUE/FALSE QUESTIONS (CHAPTER 1)
1. True
2. True
3. False
4. True
5. False
6. True
7. True
8. False
9. False
10. False
4
