Chapter 14 Governmental & NFP UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Which of the following apply to governmental and nongovernmental NFPs expending $750,000
or more in federal awards? - CORRECT ANSWER - both the Single Audit Act and
Uniform Guidance
In order for an NFP organization to be considered a governmental organization, it must have one
or more of which characteristics? - CORRECT ANSWER - -popular election of officers or
appointment of a controlling majority by a government
-the potential for unilateral dissolution by a government with net assets reverting to a
government
-the power to enact and enforce a tax levy
The FASB's objectives of financial reporting for not-for-profit organizations are to provide
information useful in which of the following? - CORRECT ANSWER - -assessing
economic resources, obligations, net resources and changes in them
-making resource allocation decisions
-assessing services and ability to provide services
The statement of financial position shows which of the following? - CORRECT
ANSWER - total assets, total liabilities, and net assets
Which of the following statements is correct? - CORRECT ANSWER - The FASB
assumed primary responsibility for providing guidance on GAAP for not-for-profit entities.
The Single Audit Act and OMB Circular A-133 apply to: - CORRECT ANSWER -
governmental and nongovernmental NFPs expending $750,000 or more in federal awards
, Which of the following statements are correct? - CORRECT ANSWER - -Hospitals and
social service organizations may be governmental or nongovernmental.
-If an organization has the power to enact and enforce a tax levy, it is a governmental
organization.
Stakeholders of NFPs that use not-for-profit financial statements include which of the following?
- CORRECT ANSWER - lenders
donors
grantors
members
The statement of financial position is also known as a(n) ______. - CORRECT
ANSWER - balance sheet
Which of the following is responsible for governmental not-for-profit organizations? -
CORRECT ANSWER - GASB
Which of the following apply to governmental and nongovernmental NFPs expending $750,000
or more in federal awards? - CORRECT ANSWER - both the Single Audit Act and
Uniform Guidance
Contributions for which either no donor restrictions exist or the restrictions have expired,
revenues for services provided, and investment income can give rise to which of the following? -
CORRECT ANSWER - net assets without donor restriction
Endowments are net assets with donor restrictions that are ______ in nature. - CORRECT
ANSWER - permanent
The statement of ______ is an operating statement that presents all changes in net assets without
donor restrictions, net assets with donor restrictions, and total net assets for the reporting period.
- CORRECT ANSWER - activities
ACTUAL Exam Questions and CORRECT
Answers
Which of the following apply to governmental and nongovernmental NFPs expending $750,000
or more in federal awards? - CORRECT ANSWER - both the Single Audit Act and
Uniform Guidance
In order for an NFP organization to be considered a governmental organization, it must have one
or more of which characteristics? - CORRECT ANSWER - -popular election of officers or
appointment of a controlling majority by a government
-the potential for unilateral dissolution by a government with net assets reverting to a
government
-the power to enact and enforce a tax levy
The FASB's objectives of financial reporting for not-for-profit organizations are to provide
information useful in which of the following? - CORRECT ANSWER - -assessing
economic resources, obligations, net resources and changes in them
-making resource allocation decisions
-assessing services and ability to provide services
The statement of financial position shows which of the following? - CORRECT
ANSWER - total assets, total liabilities, and net assets
Which of the following statements is correct? - CORRECT ANSWER - The FASB
assumed primary responsibility for providing guidance on GAAP for not-for-profit entities.
The Single Audit Act and OMB Circular A-133 apply to: - CORRECT ANSWER -
governmental and nongovernmental NFPs expending $750,000 or more in federal awards
, Which of the following statements are correct? - CORRECT ANSWER - -Hospitals and
social service organizations may be governmental or nongovernmental.
-If an organization has the power to enact and enforce a tax levy, it is a governmental
organization.
Stakeholders of NFPs that use not-for-profit financial statements include which of the following?
- CORRECT ANSWER - lenders
donors
grantors
members
The statement of financial position is also known as a(n) ______. - CORRECT
ANSWER - balance sheet
Which of the following is responsible for governmental not-for-profit organizations? -
CORRECT ANSWER - GASB
Which of the following apply to governmental and nongovernmental NFPs expending $750,000
or more in federal awards? - CORRECT ANSWER - both the Single Audit Act and
Uniform Guidance
Contributions for which either no donor restrictions exist or the restrictions have expired,
revenues for services provided, and investment income can give rise to which of the following? -
CORRECT ANSWER - net assets without donor restriction
Endowments are net assets with donor restrictions that are ______ in nature. - CORRECT
ANSWER - permanent
The statement of ______ is an operating statement that presents all changes in net assets without
donor restrictions, net assets with donor restrictions, and total net assets for the reporting period.
- CORRECT ANSWER - activities
