Governmental Accounting Chapter 1
questions and actual answers.
Standard setting board for federal government ANS -Federal Accounting Standards Advisory Board
Standard setting board for state and local governments ANS -Governmental Accounting Standards Board
Standard setting board for public not for profits ANS -Governmental Accounting Standards Board
Standard setting board for private not for profits ANS -Financial Accounting Standards Board
5 environmental differences between governmental and financial Accounting ANS -1. Organizational
purposes: governments exist to provide public services regardless of profitability
2. Sources of revenue: taxes aren't earned, so recognition isn't always clear
3. Potential for longevity: governments don't usually go out of business, so focus is on sustainability and
ability to meet future demand
4. Relationship with stakeholders: governments receive restricted money often
5. Role of budget: governmental budgets carry the authority of law
Basic GAAP hierarchy ANS -1. Statements and interpretations
2. Technical bulletins
3. Practice bulletins
4. Implementation guides and widely recognized practices
Governmental organizations have one of these characteristics ANS -1. Popular election of officers or
appointment of contouring interest by one or more state or local governments
2. Potential for unilateral dissolution by a government with net resources reverting to a government
3. Power to enact and enforce a tax levy
questions and actual answers.
Standard setting board for federal government ANS -Federal Accounting Standards Advisory Board
Standard setting board for state and local governments ANS -Governmental Accounting Standards Board
Standard setting board for public not for profits ANS -Governmental Accounting Standards Board
Standard setting board for private not for profits ANS -Financial Accounting Standards Board
5 environmental differences between governmental and financial Accounting ANS -1. Organizational
purposes: governments exist to provide public services regardless of profitability
2. Sources of revenue: taxes aren't earned, so recognition isn't always clear
3. Potential for longevity: governments don't usually go out of business, so focus is on sustainability and
ability to meet future demand
4. Relationship with stakeholders: governments receive restricted money often
5. Role of budget: governmental budgets carry the authority of law
Basic GAAP hierarchy ANS -1. Statements and interpretations
2. Technical bulletins
3. Practice bulletins
4. Implementation guides and widely recognized practices
Governmental organizations have one of these characteristics ANS -1. Popular election of officers or
appointment of contouring interest by one or more state or local governments
2. Potential for unilateral dissolution by a government with net resources reverting to a government
3. Power to enact and enforce a tax levy
