ACCT 4421 Exam 1 LSU Briggs UPDATED
ACTUAL Exam Questions and CORRECT
Answers
-often same product produced
-using similar resources
-using scarce resource to produce a product or service
-using managements' systems to report relevant and timely results
-same economic system
-control and evaluation techniques used - CORRECT ANSWER - similarities between
government and non profits
-no profit motive
-policy setting done by elected or appointed officials
-budget is the driving force
-tax exempt debt issued
-no shareholders/owners
-financial resource contributors do not receive a proportionate share of the goods/services
-resources may be restricted
-capital assets may not produce revenue or save costs
-less distinction of internal and external reporting
-provide services for advocating political or social issue or carry out research for betterment of
society - CORRECT ANSWER - differences between government and non profit
-seize assets from other governments
-issue tax exempt debt
-elect or appoint officials - CORRECT ANSWER - governments can do these three things
,-governmental entity
-governmental non profit - CORRECT ANSWER - two types of government organization
included in GASB (Governmental Accounting Standards Board)
-federal departments and agencies - CORRECT ANSWER - part of FASAB (Federal
Accounting Standards Advisory Board)
FASB
GASB - CORRECT ANSWER - GAAP hierarchy
-authoritative
-non authoritative - CORRECT ANSWER - two parts of FASB; same names for two parts
of GASB
-public deserves to know where the money is being sent
-citizens have a right to know
-cornerstone of all financial reporting in governments - CORRECT ANSWER - three
pieces to accountability for GASB
inter-period equity - CORRECT ANSWER - financial reporting should provide
information to determine whether current year revenues were sufficient to pay for current year
services; uses full accrual
reconciliation - CORRECT ANSWER - ___ is required to show the differences between
inter-period equity and budgetary compliance
-auditor's report
-MD&A
-basic financial statements
-required supplementary information
, -combined statements and schedules - CORRECT ANSWER - the parts of the CAFR
(Comprehensive Annual Financial Report)
Comprehensive Annual Financial Report - CORRECT ANSWER - what does CAFR stand
for?
-government wide
-government fund - CORRECT ANSWER - the names of the two financial statements kept
for the government
-budgetary and fiscal compliance
-service efforts and cost accomplishments - CORRECT ANSWER - two parts of FASB
budgetary and fiscal compliance - CORRECT ANSWER - if resources obtained and used
according to the legally adopted budgets
fiduciary - CORRECT ANSWER - this statement is still found in the CAFR
service efforts and cost accomplishments - CORRECT ANSWER - provide information to
assist users in assessing the service efforts, costs, and accomplishments of governmental entity
fund - CORRECT ANSWER - used to keep track of specific source of funding and
spending for particular purposes
-fund
-function
-unit
-activity
-character
ACTUAL Exam Questions and CORRECT
Answers
-often same product produced
-using similar resources
-using scarce resource to produce a product or service
-using managements' systems to report relevant and timely results
-same economic system
-control and evaluation techniques used - CORRECT ANSWER - similarities between
government and non profits
-no profit motive
-policy setting done by elected or appointed officials
-budget is the driving force
-tax exempt debt issued
-no shareholders/owners
-financial resource contributors do not receive a proportionate share of the goods/services
-resources may be restricted
-capital assets may not produce revenue or save costs
-less distinction of internal and external reporting
-provide services for advocating political or social issue or carry out research for betterment of
society - CORRECT ANSWER - differences between government and non profit
-seize assets from other governments
-issue tax exempt debt
-elect or appoint officials - CORRECT ANSWER - governments can do these three things
,-governmental entity
-governmental non profit - CORRECT ANSWER - two types of government organization
included in GASB (Governmental Accounting Standards Board)
-federal departments and agencies - CORRECT ANSWER - part of FASAB (Federal
Accounting Standards Advisory Board)
FASB
GASB - CORRECT ANSWER - GAAP hierarchy
-authoritative
-non authoritative - CORRECT ANSWER - two parts of FASB; same names for two parts
of GASB
-public deserves to know where the money is being sent
-citizens have a right to know
-cornerstone of all financial reporting in governments - CORRECT ANSWER - three
pieces to accountability for GASB
inter-period equity - CORRECT ANSWER - financial reporting should provide
information to determine whether current year revenues were sufficient to pay for current year
services; uses full accrual
reconciliation - CORRECT ANSWER - ___ is required to show the differences between
inter-period equity and budgetary compliance
-auditor's report
-MD&A
-basic financial statements
-required supplementary information
, -combined statements and schedules - CORRECT ANSWER - the parts of the CAFR
(Comprehensive Annual Financial Report)
Comprehensive Annual Financial Report - CORRECT ANSWER - what does CAFR stand
for?
-government wide
-government fund - CORRECT ANSWER - the names of the two financial statements kept
for the government
-budgetary and fiscal compliance
-service efforts and cost accomplishments - CORRECT ANSWER - two parts of FASB
budgetary and fiscal compliance - CORRECT ANSWER - if resources obtained and used
according to the legally adopted budgets
fiduciary - CORRECT ANSWER - this statement is still found in the CAFR
service efforts and cost accomplishments - CORRECT ANSWER - provide information to
assist users in assessing the service efforts, costs, and accomplishments of governmental entity
fund - CORRECT ANSWER - used to keep track of specific source of funding and
spending for particular purposes
-fund
-function
-unit
-activity
-character
