©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP Exam Questions And Answers |Latest
2025 | Guaranteed Pass.
Other Financing Sources/Uses would appear on which of the following statements? -
Answer✔Statement of Revenues, Expenditures, and Changes in Fund Balances
A government's internal managers rely on general purpose financial statements for a
considerable amount of information about their government. - Answer✔True
The governmental Accounting Standards Board establishes generally accepted accounting
principles for all state and local governments and all not-for-profit entities. - Answer✔False
The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities
to use fund accounting. - Answer✔False
Fund accounting promotes control and accountability over restricted resources. - Answer✔True
Encumbrances and expenditures both reduce total fund balances of state and local
governments. - Answer✔False
State and local governments' budget-to-actual comparisons present both original and final
budget amounts - Answer✔True
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
In accounting for property taxes, under the modified accrual basis, existing standards provide
that, except in unusual circumstances, revenues should be recognized only if cash is expected
to be collected within sixty days after year-end. - Answer✔True
Ad valorem taxes are taxes that are based on value. - Answer✔True
Expenditures are generally recognized when resources are acquired; expenses when resources
consumed. - Answer✔True
Prepaid expenses such as for insurance are classified as deferred outflows, rather than as
assets. - Answer✔False
The primary objective of a not-for-profit organization or a government is to - Answer✔Provide
services to constituents.
Interperiod equity refers to a condition whereby - Answer✔Current-year revenues are sufficient
to pay for current-year services
The most significant financial document provided by a government is the - Answer✔Operating
Budget
The purpose of the FASAB is to establish accounting standards for - Answer✔Federal
government.
The City of Round Mountain receives a contribution of $10 million. The donor stipulates that
the money is to be invested. The principle is to remain intact and the investment proceeds are
to be used to support a city-owned recreation center. The city should report the contribution in
a - Answer✔Permanent Fund
2|P a g e
NFP Exam Questions And Answers |Latest
2025 | Guaranteed Pass.
Other Financing Sources/Uses would appear on which of the following statements? -
Answer✔Statement of Revenues, Expenditures, and Changes in Fund Balances
A government's internal managers rely on general purpose financial statements for a
considerable amount of information about their government. - Answer✔True
The governmental Accounting Standards Board establishes generally accepted accounting
principles for all state and local governments and all not-for-profit entities. - Answer✔False
The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities
to use fund accounting. - Answer✔False
Fund accounting promotes control and accountability over restricted resources. - Answer✔True
Encumbrances and expenditures both reduce total fund balances of state and local
governments. - Answer✔False
State and local governments' budget-to-actual comparisons present both original and final
budget amounts - Answer✔True
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
In accounting for property taxes, under the modified accrual basis, existing standards provide
that, except in unusual circumstances, revenues should be recognized only if cash is expected
to be collected within sixty days after year-end. - Answer✔True
Ad valorem taxes are taxes that are based on value. - Answer✔True
Expenditures are generally recognized when resources are acquired; expenses when resources
consumed. - Answer✔True
Prepaid expenses such as for insurance are classified as deferred outflows, rather than as
assets. - Answer✔False
The primary objective of a not-for-profit organization or a government is to - Answer✔Provide
services to constituents.
Interperiod equity refers to a condition whereby - Answer✔Current-year revenues are sufficient
to pay for current-year services
The most significant financial document provided by a government is the - Answer✔Operating
Budget
The purpose of the FASAB is to establish accounting standards for - Answer✔Federal
government.
The City of Round Mountain receives a contribution of $10 million. The donor stipulates that
the money is to be invested. The principle is to remain intact and the investment proceeds are
to be used to support a city-owned recreation center. The city should report the contribution in
a - Answer✔Permanent Fund
2|P a g e
