Test Bank for Accounting for Governmental & Nonprofit Entities 18th Edition (Jacqueline L. Reck, 2018), All Chapters Included

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Test Bank for Accounting for Governmental & Nonprofit Entities, 18e Jacqueline
PR
Reck, Suzanne Lowensohn, Earl Wilson
ES
S IV
EG
R
AD
ES
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, All Chapterslkjhgfdsa
Included

All Answers Included
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Accounting for Governmental and Nonprofit Entities, 18e (Reck)
Chapter 1 I n t r o d u c t i o n to Accounting and Financial Reporting for Government
and Not-for-Profit Entities
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1) Special purpose governments generally provide a wider range of services to their residents than
do general purpose governments.

Answer: FALSE
Difficulty: 1 Easy
Topic: Distinguishing Government and Not-For-Profit Organizations
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Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry

2) Examples of general-purpose governments include cities, towns, and public schools that receive
S
tax revenue to finance the services they provide.

Answer: TRUE
IV
Difficulty: 1 Easy
Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Remember
EG
AACSB: Knowledge Application
AICPA: BB Industry

3) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all state and local governments, both general purpose and special
purpose.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
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Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry
ES
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4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
accounting principles for all government entities.
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Answer: FALSE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
PR
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: BB Industry
ES
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.

Answer: FALSE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
S
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
IV
AACSB: Knowledge Application
AICPA: BB Industry

6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
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owners.

Answer: TRUE
Difficulty: 2 Medium
Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
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Bloom's: Understand
AACSB: Knowledge Application
AICPA: FN Reporting
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7) A characteristic common to governments and not-for-profit organizations is that they do not
exist to provide goods or services at a profit or profit equivalent.
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Answer: TRUE
Difficulty: 2 Medium
Topic: Distinguishing Government and Not-For-Profit Organizations
PR
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
and not-for-profit entities from for-profit entities.
Bloom's: Understand
AACSB: Knowledge Application
AICPA: BB Industry

8) The needs of users of government financial reports are the same as those of users of business
ES
entity financial reports.

Answer: FALSE
Difficulty: 2 Medium
Topic: Distinguishing Government and Not-For-Profit Organizations
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
S
and not-for-profit entities from for-profit entities.
Bloom's: Understand
AACSB: Knowledge Application
IV
AICPA: BB Industry

9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.
EG
Answer: TRUE
Difficulty: 1 Easy
Topic: Sources of financial reporting standards
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
reporting standards for (1) state and local governments, (2) the federal government, and (3)
not-for-profit organizations.
Bloom's: Remember
R
AACSB: Knowledge Application
AICPA: BB Industry
AD
ES
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