Governmental and Nonprofit Accounting – WGU Study Guide and Exam Prep Page 1 Governmental and Nonprofit Accounting – WGU Study Guide and Exam Prep.pdf
Governmental and Nonprofit
Accounting – WGU Study
Guide and Exam Prep
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Page 1 of 22 2026-03-17
,Governmental and NonProfit Accounting WGU Page 2 Governmental and NonProfit Accounting WGU.pdf
What does the GASB set accounting and financial reporting set standards for?
State and local government entities and governmentally related units and agencies
Why is the traditional business model of accounting inadequate for governments and nonprofit organizations (NPOs)?
Governments and NPOs have different missions than businesses do
Which fiscal practice promotes the concept of interperiod (intergenerational) equity?
Paying the current-year costs of an administrative staff out of current operating funds.
Which accounting equation represents a governmental organization?
Fund balance = assets + deferred outflows - liabilities - deferred inflows
Which term describes the government and NPO equivalent of the term owners' equity?
Fund balance
Page 2 of 22 2 of 22 2026-03-17
, Governmental and NonProfit Accounting WGU Page 3 Governmental and NonProfit Accounting WGU.pdf
Which functions should be accounted for in an internal service fund?
A motor pool that acts as intragovernmental rental car agency
Which basis of accounting determines what assets and liabilities will be given accounting recognition and be
reported on the balance sheet?
Measurement focus
What is an example of an custodial fund?
Taxes collected by one government for the benefit of another
What does the economic resources measurement for full accrual basis do?
It reports only on the balances and flows of current and non-current assets and liabilities
Why should governments separate resources into funds?
To adhere to restrictions placed on them by various external parties
Page 3 of 22 3 of 22 2026-03-17
Governmental and Nonprofit
Accounting – WGU Study
Guide and Exam Prep
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 22
Page 1 of 22 2026-03-17
,Governmental and NonProfit Accounting WGU Page 2 Governmental and NonProfit Accounting WGU.pdf
What does the GASB set accounting and financial reporting set standards for?
State and local government entities and governmentally related units and agencies
Why is the traditional business model of accounting inadequate for governments and nonprofit organizations (NPOs)?
Governments and NPOs have different missions than businesses do
Which fiscal practice promotes the concept of interperiod (intergenerational) equity?
Paying the current-year costs of an administrative staff out of current operating funds.
Which accounting equation represents a governmental organization?
Fund balance = assets + deferred outflows - liabilities - deferred inflows
Which term describes the government and NPO equivalent of the term owners' equity?
Fund balance
Page 2 of 22 2 of 22 2026-03-17
, Governmental and NonProfit Accounting WGU Page 3 Governmental and NonProfit Accounting WGU.pdf
Which functions should be accounted for in an internal service fund?
A motor pool that acts as intragovernmental rental car agency
Which basis of accounting determines what assets and liabilities will be given accounting recognition and be
reported on the balance sheet?
Measurement focus
What is an example of an custodial fund?
Taxes collected by one government for the benefit of another
What does the economic resources measurement for full accrual basis do?
It reports only on the balances and flows of current and non-current assets and liabilities
Why should governments separate resources into funds?
To adhere to restrictions placed on them by various external parties
Page 3 of 22 3 of 22 2026-03-17
