ACCY 407 Exam with Guaranteed Accurate Answers

general purpose governments - correct answer provide a broad array of services special purpose governments - correct answer usually provide only one or just a few services (schools, hospitals) not-for-profit organizations - correct answer legally separate organizations which are usually exempt from federal, state, and local taxation (private schools, religious groups) compared to business organizations - correct answer -receive resources from providers who do not expect repayment or proportionate economic benefit back -operating purpose not to generate a profit -absence of defined ownership interests governmental entities - correct answer -power rests in hands of the people through election of public officials -empowered by and accountable to a higher level government -taxation powers Governmental Accounting Standards Board (GASB) - correct answer sets standards for state and local governmental units and governmental non-profits Federal Accounting Standards Advisory Board (FASAB) - correct answer sets standards for federal government and its agencies/departments objectives of financial reporting for businesses - correct answer -provide useful information for investing/credit decisions -provide information on firm's cash flows -provide information about the firm's resources objectives of financial reporting for state and local governments - correct answer -compare actual financials with budgets -assess financial condition and operations -determine compliance with finance-related regulations -assist in evaluating efficiency and effectiveness accountability - correct answer imposes a duty on public officials to be accountable to citizens for raising public funds and how they are spent (citizens' right to know) (means responsibility) interperiod equity - correct answer government's obligation to disclose (are current year revenues sufficient to pay current year benefits or do future taxpayers need to pay for them?- collect only what you need to pay for) requirements for general purpose external financing reporting - correct answer management's discussion and analysis government-wide + fund financial statements notes to financial statements required supplementary information (set by GASB) government-wide financial statements - correct answer -provide an aggregated overview of a government's net positi