ACCT 4421-Governmental and Not-for-
Profit Accounting LSU chapter 1 Questions
and Answers 100% Solved
Which of the following is the least appropriate use of the external financial statements of a
government? Correct Answ_To assess whether the compensation of management is
reasonable in relation to that of comparable entities
The traditional business model of accounting is inadequate for governments and not-for-profit
organizations primarily because businesses differ from governments and not-for-profit
organizations in that Correct Answ_They have different missions
If businesses are "governed by the marketplace" governments are governed by Correct
Answ_Budgets
The primary objective of a not-for-profit organization or a government is to Correct
Answ_Provide services to constituents
In governments in contrast to businesses Correct Answ_There may not be a direct
relationship between revenues raised and the demand for the entity's services
Profit Accounting LSU chapter 1 Questions
and Answers 100% Solved
Which of the following is the least appropriate use of the external financial statements of a
government? Correct Answ_To assess whether the compensation of management is
reasonable in relation to that of comparable entities
The traditional business model of accounting is inadequate for governments and not-for-profit
organizations primarily because businesses differ from governments and not-for-profit
organizations in that Correct Answ_They have different missions
If businesses are "governed by the marketplace" governments are governed by Correct
Answ_Budgets
The primary objective of a not-for-profit organization or a government is to Correct
Answ_Provide services to constituents
In governments in contrast to businesses Correct Answ_There may not be a direct
relationship between revenues raised and the demand for the entity's services
