Governmental and Nonprofit ACG
3501 Exam with Questions Passed
100%
What kind of standard setting boards are the FASB and GASB? - ✔✔They are referred to as
independent standards setting board in the private sector due to the fact that the breadth of support for
them and the lack of ties to any single organization or government
Who are the three officials that have the responsibility for establishing and maintaining a sound financial
structure for the federal government? - ✔✔The Comptroller General, the Director of the Office of
Management and Budget, and the Secretary of the Treasury
What Advisory Board is made up of the Comptroller General, the Director of the Office of Management
and Budget, and the Secretary of the Treasury? - ✔✔They make up the FASAB (Federal Accounting
Standards Advisory Board) that recommends accounting principles and standards for the federal
government and its agencies. They should be consistent with GASB standards and where applicable by
FASB standards.
What is the GASB Concept Statement No. 1 state about Accountability? - ✔✔Accountability is the
cornerstone of all financial reporting in government. Accountability requires governments to answers to
the citizenry to justify the raising of public resources and the purposes for which they are used.
Government accountaibility is based on the belief that the citizenry has a "right to know" a right to
receive openly declared facts that may lead to public debate by the citizens and their elected
representatives. Financial reporting plays a major role in fulfilling government's duty to be publicly
accountable in a democratic society.
What is Interperiod Equity? - ✔✔A term closely related to accountability in the cornerstone
established by GASB. It is a concept explained as: Financial reporting should help users assess whether
current-year revenues are sufficient to pay for services provided that year and whether future taxpayers
will be required to assume burdens for services previously provided.
What are the four objectives of federal financial reporting? - ✔✔Budgetary integrity,
Operating performance, stewardship, adequacy of systems and controls.
,What are the four major groups that the FASAB has identified as major users of federal
financial reports? - ✔✔Citizens, Congress, executives, and program managers.
Who is the FASB and GASB concerned with establishing financial reporting standards for? -
✔✔External users. (lack the authority to prescribe the information they want and who must rely on
the information management communicates to them). The Board does not intend to set standards for
reporting to managers and administrators or others deemed to have the ability to enforce their
demands for information.
What are the minimum requirements for General Purpose external Financial Reporting? -
✔✔Managements Discussion and Analysis, Government-wide Financial statements and Fund financial
statements, Notes to the financial statements, and Required Supplementary Information (Other than
MD&A)
What is the Management's Dicussion and Analysis? - ✔✔It is a part of the required
supplementary information designed to communicate in narrative, easily readable form the purpose
of the basic financial statements and the government's current financial position and results of
financial activities compared with those of the prior years
What are the two categories of basic financial statements? - ✔✔Government-wide and Fund
What are Government-wide financial statements? - ✔✔Government-wide financial statements are
intended to provide an aggregated overview of a government's net position and changes in net
position. They report on the government as a whole and assist in assessing Operational accountability.
What does the government wide financial statements assist is assessing? -
✔✔Operational accountability
What is operational accountability? - ✔✔whether the government has used its resources efficiently
and effectively in meeting operating objectives. Is is best achieved by using essentially the same basis of
accounting and measurement focus used by business organizations: accrual accounting and economic
focus
,What is the accounting method and focus for government wide financial statements? -
✔✔Accrual accounting and economic resources flow focus.
What are Fund financial statements? - ✔✔Fund financial statements provide more detailed
financial information about the government. Certain funds, referred to as governmental funds, focus
on the short-term flow of current financial resources or fiscal accountability, rather than on the flow of
economic resources.
What is fiscal accountability? - ✔✔focusing on the short-term flow of current financial resources
What is the accounting type used for fund financial statements? - ✔✔Modified accrual accounting
What is modified accrual accounting? - ✔✔Modified accrual accounting is when revenues are
recognized in the period they are measurable and available for spending and expenditures (not
expenses) are recognized when they create an obligation to be paid from current financial resources.
What is the focus and accounting method for fund financial statements? - ✔✔Flow of
current financial resources focus, and modified accrual accounting
What type of reporting does proprietary and fiduciary funds follow? - ✔✔They follow reporting
principles similar to those of business organizations. They report on the operational accountability of the
proprietary or fiduciary activity accounted for by the particular fund
What is a CAFR (Codification of Governmental Accounting and Financial Reporting Standards)? -
✔✔CAFR is a report that provides more detail than found in government wide for fund financial
statements. Governments are not required to prepare one but most do so as a matter of public
record and to provide additional information.
What are the sections found in the CAFR? - ✔✔Introductory section, Financial section, and
Statistical Section.
, What does the introductory section of the CAFR contain? - ✔✔Title page, contents page, letter of
transmittal, description of government, and other items deemed appropriate by management. The
letter material (or narrative) should cite legal and policy requirements for the report.
What does the financial section of the CAFR contain? - ✔✔1) an auditors report, 2)
managements dicussion and analysis 3) basic financial statements 4) other required supplementary
information.
What does the statistical section of the CAFR contain? - ✔✔This section presents tables and charts
showing demographic and economic data, financial trends, fiscal capacity, and operating information of
the government in the detail needed by readers who are more than casually interested in the activities
of the government.
What is a PAR (Performance and Accountability Report)? - ✔✔A PAR is a report that the Office of
Management and Budget required to be prepared for all major federal departments and agencies. It
includes an Annual Performance Report (APR) Annual financial statements, and a variety of
management reports on internal control and other accountability issues. The PAR has four sections
containg: An MD&A, Performance information, Basic Financial Statements, and Other accompanying
information.
What are the Four sections for the PAR? - ✔✔An MD&A, Performance information, Basic
Financial Statements, and Other accompanying information.
What is the purpose of Financial statement fors NFP organizations? - ✔✔The primary purpose is
to provide decision-useful financial information to resource providers, principally donors, members,
and creditors, among others.
What do resource providers have in common for NFPs? - ✔✔THey have in common the need to 1)
assess the services provided by an NFP and the ability of the NFP to continue to provide those services.
and 2) assess management's performance and stewardship of resources
What sort of organization-wide financial statements does the FASB required NFPs to prepare? - ✔✔A
statement of financial position (balance sheet), a statements of activities (income statement), and a
statement of cash flows
3501 Exam with Questions Passed
100%
What kind of standard setting boards are the FASB and GASB? - ✔✔They are referred to as
independent standards setting board in the private sector due to the fact that the breadth of support for
them and the lack of ties to any single organization or government
Who are the three officials that have the responsibility for establishing and maintaining a sound financial
structure for the federal government? - ✔✔The Comptroller General, the Director of the Office of
Management and Budget, and the Secretary of the Treasury
What Advisory Board is made up of the Comptroller General, the Director of the Office of Management
and Budget, and the Secretary of the Treasury? - ✔✔They make up the FASAB (Federal Accounting
Standards Advisory Board) that recommends accounting principles and standards for the federal
government and its agencies. They should be consistent with GASB standards and where applicable by
FASB standards.
What is the GASB Concept Statement No. 1 state about Accountability? - ✔✔Accountability is the
cornerstone of all financial reporting in government. Accountability requires governments to answers to
the citizenry to justify the raising of public resources and the purposes for which they are used.
Government accountaibility is based on the belief that the citizenry has a "right to know" a right to
receive openly declared facts that may lead to public debate by the citizens and their elected
representatives. Financial reporting plays a major role in fulfilling government's duty to be publicly
accountable in a democratic society.
What is Interperiod Equity? - ✔✔A term closely related to accountability in the cornerstone
established by GASB. It is a concept explained as: Financial reporting should help users assess whether
current-year revenues are sufficient to pay for services provided that year and whether future taxpayers
will be required to assume burdens for services previously provided.
What are the four objectives of federal financial reporting? - ✔✔Budgetary integrity,
Operating performance, stewardship, adequacy of systems and controls.
,What are the four major groups that the FASAB has identified as major users of federal
financial reports? - ✔✔Citizens, Congress, executives, and program managers.
Who is the FASB and GASB concerned with establishing financial reporting standards for? -
✔✔External users. (lack the authority to prescribe the information they want and who must rely on
the information management communicates to them). The Board does not intend to set standards for
reporting to managers and administrators or others deemed to have the ability to enforce their
demands for information.
What are the minimum requirements for General Purpose external Financial Reporting? -
✔✔Managements Discussion and Analysis, Government-wide Financial statements and Fund financial
statements, Notes to the financial statements, and Required Supplementary Information (Other than
MD&A)
What is the Management's Dicussion and Analysis? - ✔✔It is a part of the required
supplementary information designed to communicate in narrative, easily readable form the purpose
of the basic financial statements and the government's current financial position and results of
financial activities compared with those of the prior years
What are the two categories of basic financial statements? - ✔✔Government-wide and Fund
What are Government-wide financial statements? - ✔✔Government-wide financial statements are
intended to provide an aggregated overview of a government's net position and changes in net
position. They report on the government as a whole and assist in assessing Operational accountability.
What does the government wide financial statements assist is assessing? -
✔✔Operational accountability
What is operational accountability? - ✔✔whether the government has used its resources efficiently
and effectively in meeting operating objectives. Is is best achieved by using essentially the same basis of
accounting and measurement focus used by business organizations: accrual accounting and economic
focus
,What is the accounting method and focus for government wide financial statements? -
✔✔Accrual accounting and economic resources flow focus.
What are Fund financial statements? - ✔✔Fund financial statements provide more detailed
financial information about the government. Certain funds, referred to as governmental funds, focus
on the short-term flow of current financial resources or fiscal accountability, rather than on the flow of
economic resources.
What is fiscal accountability? - ✔✔focusing on the short-term flow of current financial resources
What is the accounting type used for fund financial statements? - ✔✔Modified accrual accounting
What is modified accrual accounting? - ✔✔Modified accrual accounting is when revenues are
recognized in the period they are measurable and available for spending and expenditures (not
expenses) are recognized when they create an obligation to be paid from current financial resources.
What is the focus and accounting method for fund financial statements? - ✔✔Flow of
current financial resources focus, and modified accrual accounting
What type of reporting does proprietary and fiduciary funds follow? - ✔✔They follow reporting
principles similar to those of business organizations. They report on the operational accountability of the
proprietary or fiduciary activity accounted for by the particular fund
What is a CAFR (Codification of Governmental Accounting and Financial Reporting Standards)? -
✔✔CAFR is a report that provides more detail than found in government wide for fund financial
statements. Governments are not required to prepare one but most do so as a matter of public
record and to provide additional information.
What are the sections found in the CAFR? - ✔✔Introductory section, Financial section, and
Statistical Section.
, What does the introductory section of the CAFR contain? - ✔✔Title page, contents page, letter of
transmittal, description of government, and other items deemed appropriate by management. The
letter material (or narrative) should cite legal and policy requirements for the report.
What does the financial section of the CAFR contain? - ✔✔1) an auditors report, 2)
managements dicussion and analysis 3) basic financial statements 4) other required supplementary
information.
What does the statistical section of the CAFR contain? - ✔✔This section presents tables and charts
showing demographic and economic data, financial trends, fiscal capacity, and operating information of
the government in the detail needed by readers who are more than casually interested in the activities
of the government.
What is a PAR (Performance and Accountability Report)? - ✔✔A PAR is a report that the Office of
Management and Budget required to be prepared for all major federal departments and agencies. It
includes an Annual Performance Report (APR) Annual financial statements, and a variety of
management reports on internal control and other accountability issues. The PAR has four sections
containg: An MD&A, Performance information, Basic Financial Statements, and Other accompanying
information.
What are the Four sections for the PAR? - ✔✔An MD&A, Performance information, Basic
Financial Statements, and Other accompanying information.
What is the purpose of Financial statement fors NFP organizations? - ✔✔The primary purpose is
to provide decision-useful financial information to resource providers, principally donors, members,
and creditors, among others.
What do resource providers have in common for NFPs? - ✔✔THey have in common the need to 1)
assess the services provided by an NFP and the ability of the NFP to continue to provide those services.
and 2) assess management's performance and stewardship of resources
What sort of organization-wide financial statements does the FASB required NFPs to prepare? - ✔✔A
statement of financial position (balance sheet), a statements of activities (income statement), and a
statement of cash flows
