Govt. and NFP Test 1 Questions and Answers 100% Pass

Govt. and NFP Test 1 Questions and Answers 100% Pass Which of the following is not a distinguishing difference between govt. and for profit agencies: A. Lack of Profit Motive B. Revenue may be earned through exchange transactions C. Absence of owners D. Resources are provided by individuals and entities that may not directly benefit from resources - B. Revenue may be earned through exchange transactions 2 Katelyn Whitman, All Rights Reserved © 2025 James is reviewing his city's financial reporting because he wants to run for council. He is concerned that the city is not using its resources effectively. He's primarily interested in: A. Fiscal Accountability B. Social Accountability C. Political Accountability D. Operational Accountability - D. Operational Accountability The concept of interperiod equity refers to whether: A. Revenues equaled or exceeded expenditures for the year. B. Total assets were sufficient to cover total liabilities. C. Current year revenues were sufficient to pay for current year services. D. Future taxpayers can expect to receive the same or higher level of services as current taxpayers. - C. - Current year revenues were sufficient to pay for current year services. 3 Katelyn Whitman, All Rights Reserved © 2025 What are the components that are included in the minimum requirements for general purpose financial reporting? A. Introductory section, financial section, and statistical section B. MD&A, Govt. financial statements, fund financial statements, notes to the financial statements, and RSI C. Letter from the the CFO, Govt. Financial Statements, Notes to the financial statements, and RSI D. MD&A, Govt. Wide financial statements, notes to the financial statements, and RSI - D. MD&A, Govt. Financial Statements, Notes to the financials, and RSI The basic financial statements of a state or local govt. include all of the following except: A. An MD&A B. Govt. Wide financial statements C. Fund Financial Statements D. Notes to the financials - A. An MD&A 4 Katelyn Whitman, All Rights Reserved © 2025 Under GASB standards, financial info useful for assessing operational accountability is primarily reported in which financial statements? - Govt. Wdie F/S - Yes Fund F/S - No The primary reason that NFP organizations should report expenses incurred for program purposed separately from those for supporting services is that: A. GASB standards require it B. Program managers need info about the cost of activities for which they're responsible C. Top managers need to know how much they are spending for non- program support D. Donors and oversight bodies need to know what percentage of total expenses incurred for carrying out the NFPs programs. - D. - Donors and oversight bodies need to know what % of total expenses incurred are for carrying out the NFP's programs 5 Katelyn Whitman, All Rights Reserved © 2025 T/F - Special purpose govts. generally provide a wider range of services to their residents than general purpose governments. - False T/F - The GASB is the body authorized to establish accounting principles for all state and local governments, both general and special purpose. - True T/F - Neither governmental nor NFP entities have residual equity that can be distributed to owners. - True Which of the following is a true statement rega