ACCY 407 (Govt. and NFP) Chapter 1 Exam Questions And Answers 100% Solved

ACCY 407 (Govt. and NFP) Chapter 1 Exam Questions And Answers 100% Solved 2 types of governments - answergeneral purpose government special purpose government general government - answerprovide a broad array of services Examples: city of Oxford, the state of MS, cities, towns, villages, counties, responsible for foods, parks and recreation, police, and fire departments, state and federal governments special purpose government - answerusually provides only a single or just a few services (related/specific services) Examples: Ole Miss, public schools, public hospitals, fire protection districts, sewer districts, transportation authorities, independent school systems not-for-profit organizations - answerlegally seperate entities -- seperate from owners, donors; it is a stand-alone company usually exempt from federal, state, and local taxation Examples: religious, community service, private education and health care, museums, fraternal and social organizations, etc. Ole Miss is a _________________, and Harvard is a _________________. - answerOle Miss = special purpose government Harvard = NFP organization characteristics that distinguish state and local governments and NFPs from Business Organizations: - answer1. resource *providers do NOT expect to receive* either repayment or economic benefits *proportionate* to resources provided 2. *Operating purposes* that are other than to provide goods/services at a profit or profit equivalent 3. *Absence of defined ownership interests* that can be sold, transferred, redeemed, or that convey entitlement to a share of a residual distribution of resources in the event of liquidation (ex. bankruptcy) of the organization where is the power for governmental entities? - answer- power ultimately rests in the hands of the people - people delegate power to public officials through the election process - empowered by and accountable to a higher level government taxation powers for governmental entities - answerCAN tax taxation powers for NFP entites - answerCANNOT tax where is the power for NFP - answerthe Board of Trustees FASB means - answerFinancial Accounting Standards Board FASB sets standards for: - answerbusiness organizations NONgovernmental not-for-profits (ex.Harvard) GASB means - answerGovernmental Accounting Standards Board GASB sets standards for: - answerState and local governmental organizations Governmental not-for-profits (ex. Ole Miss) FASAB means - answerFederal Accounting Standards Advisory Board FASAB sets standards for: - answerFederal government, its agencies and departments objectives of financial reporting for Business Organizations: - answer1. provide useful information for making investment and credit decisions 2. provide information to assess the amounts, timing, and uncertainty of the firm's cash flows