Governmental and Nonprofit Accounting (IYC2) Questions & Answers 100% Correct

What is a major category of government and nonprofit organizations? - ANSWER-Municipalities What is one reason government and nonprofit entities exist? - ANSWER-To provide goods and services Which standard-setting body governs industrial development authorities established by a municipality? - ANSWER-GASB Which entity is currently responsible for issuing standards for users of governmental financial reports? - ANSWER-GASB What is one reason for financial reporting by nonprofit entities? - ANSWER-To allow the assessment of how managers fulfill their duties What is a classification of net assets reported by not-for-profit organizations that indicates donor-imposed requirements? - ANSWER-Temporarily restricted net assets Where should a nonprofit's investment earnings be reported if the earnings are restricted to research projects, per donor request? - ANSWER-Temporarily restricted revenues A general government department donates a capital asset with an original cost of $50,000 to an enterprise fund. The net book value as of the date of donation is $17,500. Which entry should be recorded by the enterprise fund? - ANSWER-A debit to Capital Assets of $50,000 and credits to Accumulated Depreciation of $32,500 and Capital Contribution of $17,500 Which fund type should be reported in the statement of revenues, expenditures, and changes in fund balance? - ANSWER-Permanent funds