Student79name:
1) Explain79the79essential79differences79between79general79purpose79and79special79p
urpose79governments79and79give79several79examples79of79each.
2) Identify79and79explain79the79characteristics79that79distinguish79governments79and79not-
for-profit79entities79from79business79entities.
3) GASB79and79FASB79standards79are79concerned79only79with79external79financial79reporting
;79whereas,79FASAB79standards79are79concerned79with79both79internal79and79external79financial79re
porting.79Do79you79agree79with79this79statement?79Why79or79why79not?
4) Why79should79persons79interested79in79reading79financial79reports79of79governments79and7
9not-for-79profit79entities79be79familiar79with79standards79set79by79the79GASB79and79the79FASB?
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,5) Explain79in79your79own79words79why79accountability79is79the79cornerstone79of79all7
9financial79reporting79in79government.
6) In79your79own79words79state79the79primary79needs79the79GASB79believes79external79users
79have79for79financial79reports79of79state79and79local79governments.79For79contrast,79state79the79use
s79the79FASB79believes79external79users79have79for79the79financial79reports79of79not-for-
profit79organizations.
7) Describe79the79difference79between79a79comprehensive79annual79financial79report79(CAF
R)79and79GASB79general79purpose79external79financial79reporting79for79state79and79local79gover
nments.
8) Identify79and79briefly79explain79the79four79sections79of79the79performance79and79accountabili
ty79report79(PAR)79that79the79Office79of79Management79and79Budget79requires79major79federal79dep
artments79and79agencies79to79prepare.
Version79 2
1
,9) Explain79the79concepts79of79fiscal79and79operational79accountability79and79the79basis79of79a
ccounting79used79to79capture79each79concept.
10) Describe79the79comprehensive79annual79financial79report79(CAFR).79What79are79the79sectio
ns79of79the79report79and79which79components79of79the79organization79should79it79include?79Is79a79C
AFR79required?
11) The79Governmental79Accounting79Standards79Board79is79assigned79responsibility79for79
setting79accounting79and79financial79reporting79standards79for79which79of79the79following?
A) Governments79such79as79federal79agencies,79states,79cities,79counties,79village
s,79and79townships.
B) State79and79local79government79entities79and79governmentally-
related79units79and79agencies,79such79as79utilities,79authorities,79hospitals,79and79colleges79and79u
niversities.
C) Not-for-profit79organizations.
D) State79and79local79governments79and79all79not-for-profit79organizations.
Version79 3
1
, 12) Which79of79the79following79bodies79has79been79established79to79recommend79account
ing79and79financial79reporting79standards79for79the79federal79government?
A) Financial79Accounting79Standards79Board79(FASB).
B) Governmental79Accounting79Standards79Board79(GASB).
C) Federal79Accounting79Foundation79(FAF).
D) Federal79Accounting79Standards79Advisory79Board79(FASAB).
13) The79Financial79Accounting79Standards79Board79has79the79responsibility79for79setting79acc
ounting79and79financial79reporting79standards79for79which79of79the79following?
A) All79not-for-profit79organizations79that79are79nongovernmental79and79business79entities.
B) All79not-for-profit79organizations79and79business79entities.
C) All79not-for-profit79organizations.
D) Special79purpose79governments79with79a79business79purpose.
14) You79are79trying79to79decide79if79an79entity79you79are79reviewing79is79a79government79o
r79a79not-for-
79profit.79Which79of79the79following79would79indicate79it79is79a79government79rather79than79a79
not-for-profit79entity?
A) Absence79of79profit79motive.
B) A79primary79source79of79revenues79is79taxes.
C) Resource79providers79do79not79expect79benefits79proportional79to79the79resources79provided.
D) Absence79of79a79defined79ownership79interest79that79can79be79sold,79transferred,79or79redeem
ed.
15) Which79of79the79following79is79identified79by79the79GASB79as79the79"cornerstone"79of79al
l79financial79reporting79in79government?
A) Decision79usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod79equity.
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1
1) Explain79the79essential79differences79between79general79purpose79and79special79p
urpose79governments79and79give79several79examples79of79each.
2) Identify79and79explain79the79characteristics79that79distinguish79governments79and79not-
for-profit79entities79from79business79entities.
3) GASB79and79FASB79standards79are79concerned79only79with79external79financial79reporting
;79whereas,79FASAB79standards79are79concerned79with79both79internal79and79external79financial79re
porting.79Do79you79agree79with79this79statement?79Why79or79why79not?
4) Why79should79persons79interested79in79reading79financial79reports79of79governments79and7
9not-for-79profit79entities79be79familiar79with79standards79set79by79the79GASB79and79the79FASB?
Version79 1
1
,5) Explain79in79your79own79words79why79accountability79is79the79cornerstone79of79all7
9financial79reporting79in79government.
6) In79your79own79words79state79the79primary79needs79the79GASB79believes79external79users
79have79for79financial79reports79of79state79and79local79governments.79For79contrast,79state79the79use
s79the79FASB79believes79external79users79have79for79the79financial79reports79of79not-for-
profit79organizations.
7) Describe79the79difference79between79a79comprehensive79annual79financial79report79(CAF
R)79and79GASB79general79purpose79external79financial79reporting79for79state79and79local79gover
nments.
8) Identify79and79briefly79explain79the79four79sections79of79the79performance79and79accountabili
ty79report79(PAR)79that79the79Office79of79Management79and79Budget79requires79major79federal79dep
artments79and79agencies79to79prepare.
Version79 2
1
,9) Explain79the79concepts79of79fiscal79and79operational79accountability79and79the79basis79of79a
ccounting79used79to79capture79each79concept.
10) Describe79the79comprehensive79annual79financial79report79(CAFR).79What79are79the79sectio
ns79of79the79report79and79which79components79of79the79organization79should79it79include?79Is79a79C
AFR79required?
11) The79Governmental79Accounting79Standards79Board79is79assigned79responsibility79for79
setting79accounting79and79financial79reporting79standards79for79which79of79the79following?
A) Governments79such79as79federal79agencies,79states,79cities,79counties,79village
s,79and79townships.
B) State79and79local79government79entities79and79governmentally-
related79units79and79agencies,79such79as79utilities,79authorities,79hospitals,79and79colleges79and79u
niversities.
C) Not-for-profit79organizations.
D) State79and79local79governments79and79all79not-for-profit79organizations.
Version79 3
1
, 12) Which79of79the79following79bodies79has79been79established79to79recommend79account
ing79and79financial79reporting79standards79for79the79federal79government?
A) Financial79Accounting79Standards79Board79(FASB).
B) Governmental79Accounting79Standards79Board79(GASB).
C) Federal79Accounting79Foundation79(FAF).
D) Federal79Accounting79Standards79Advisory79Board79(FASAB).
13) The79Financial79Accounting79Standards79Board79has79the79responsibility79for79setting79acc
ounting79and79financial79reporting79standards79for79which79of79the79following?
A) All79not-for-profit79organizations79that79are79nongovernmental79and79business79entities.
B) All79not-for-profit79organizations79and79business79entities.
C) All79not-for-profit79organizations.
D) Special79purpose79governments79with79a79business79purpose.
14) You79are79trying79to79decide79if79an79entity79you79are79reviewing79is79a79government79o
r79a79not-for-
79profit.79Which79of79the79following79would79indicate79it79is79a79government79rather79than79a79
not-for-profit79entity?
A) Absence79of79profit79motive.
B) A79primary79source79of79revenues79is79taxes.
C) Resource79providers79do79not79expect79benefits79proportional79to79the79resources79provided.
D) Absence79of79a79defined79ownership79interest79that79can79be79sold,79transferred,79or79redeem
ed.
15) Which79of79the79following79is79identified79by79the79GASB79as79the79"cornerstone"79of79al
l79financial79reporting79in79government?
A) Decision79usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod79equity.
Version79 4
1
