Test mBankmFormAccountingmformGovernmentalm&mNonprofit mEntities,m18emJacquelinemm Reck,mSuzannemLowens
n,mEarlmWilson
Accountingm form Governmentalm andm Nonprofitm Entities,m 18em (Reck)
Chapterm1m m IntroductionmtomAccountingmandmFinancialmReportingmformGovernmentman
dmNot-for-ProfitmEntities
1) Specialmpurposemgovernmentsmgenerally mprovidema mwidermrangemof mservicesmtomtheirmresidentsmth
anmdomgeneralmpurposemgovernments.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
2) Examplesmof mgeneralmpurposemgovernmentsmincludemcities,mtowns,mand mpublicmschools mthat mrecei
vemtaxmrevenuemtomfinancemthemservicesmtheymprovide.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
3) ThemGovernmentalmAccountingmStandardsmBoard m(GASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmstatemand mlocalmgovernments,mbothmgeneralmpurposemand mspeci
almpurpose.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancial mreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
1
,4) ThemGovernmentalmAccountingmStandardsmBoard m(GASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmgovernment mentities.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancial mreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
5) ThemFinancialmAccountingmStandardsmBoard m(FASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmcollegesmand muniversitiesmand mhealthmcare mentities.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancialm reportingmstandardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
6) Neithermgovernmentsmnormnot-for-
profit mentitiesmhavemresidualmequitymthat mcanmbemdistributed mtomowners.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m FNmReporting
2
,7) Amcharacteristicmcommonmtomgovernmentsmand mnot-for-profit morganizationsmismthat mtheymdomnot
exist mtomprovidemgoodsmormservicesmat mamprofit mormprofit mequivalent.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
8) Themneedsmof musersmof mgovernment mfinancialmreportsmaremthemsamemasmthosemof musersmof mbusin
essmentitymfinancialmreports.
Answer:m FALSEmDi
fficulty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
9) ThemFederalmAccountingmStandardsmAdvisorymBoard m(FASAB)mrecommendsmaccountin
gmprinciplesmand mstandardsmformthemfederalmgovernment mand mitsmagenciesmand mdepartment
s.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancialmreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
3
, 10) ThemFASB,mGASB,mandmFASABmallmfocusmtheirmstandardsmonmbothminternalmandmexternalmfinanc
ialmreporting.
Answer:m FALSEmDi
fficulty:m2mMedium
Topic:m m Objectivesmof mfinancialmreporting
LearningmObjective:m 01-
03mContrast mand mcomparemthemobjectivesmof mfinancialmreportingmform(1)mstatemand mlocalmgovern
ments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.mBloom's:m Understand
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
11) Interperiod mequitymrefersmtomthemconcept mthat mcurrent-
yearmrevenuesmaremsufficient mtompaymformservicesmprovided mthat myear,msomthat mfuturemtaxpayersmwil
lmnot mbemrequired mtomassumemthemburdenmformservicesmpreviouslymprovided.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m Objectivesmof mfinancialmreporting
LearningmObjective:m 01-
03mContrast mand mcomparemthemobjectivesmof mfinancialmreportingmform(1)mstatemand mlocalmgovern
ments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.mBloom's:m Understand
AACSB:m KnowledgemApplication
mAICPA:m FN mReporting
12) Themminimummrequirementsmformgeneralmpurposemexternalmfinancialm reportingmarem(1) mmanag
ement'smdiscussionmand manalysism(MD&A),m(2)mthembasic mfinancial mstatements,mincludingmthemnote
smtomthemfinancialmstatements,mand m(3)mcombiningmand mindividualmfund mfinancialmstatements.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m FinancialmReportingmof mStatemand mLocalmGovernments
LearningmObjective:m 01-
04mExplainmthemminimummrequirementsmformgeneralmpurposemexternalmfinancial mreporting mformstat
emand mlocalmgovernmentsmand mhow mtheymrelatemtomcomprehensivemannualmfinancialm reports.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m FNmReporting
4
n,mEarlmWilson
Accountingm form Governmentalm andm Nonprofitm Entities,m 18em (Reck)
Chapterm1m m IntroductionmtomAccountingmandmFinancialmReportingmformGovernmentman
dmNot-for-ProfitmEntities
1) Specialmpurposemgovernmentsmgenerally mprovidema mwidermrangemof mservicesmtomtheirmresidentsmth
anmdomgeneralmpurposemgovernments.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
2) Examplesmof mgeneralmpurposemgovernmentsmincludemcities,mtowns,mand mpublicmschools mthat mrecei
vemtaxmrevenuemtomfinancemthemservicesmtheymprovide.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
3) ThemGovernmentalmAccountingmStandardsmBoard m(GASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmstatemand mlocalmgovernments,mbothmgeneralmpurposemand mspeci
almpurpose.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancial mreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
1
,4) ThemGovernmentalmAccountingmStandardsmBoard m(GASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmgovernment mentities.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancial mreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
5) ThemFinancialmAccountingmStandardsmBoard m(FASB)mismthembodymauthorized mtomestabli
shmaccountingmprinciplesmformallmcollegesmand muniversitiesmand mhealthmcare mentities.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancialm reportingmstandardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
6) Neithermgovernmentsmnormnot-for-
profit mentitiesmhavemresidualmequitymthat mcanmbemdistributed mtomowners.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m FNmReporting
2
,7) Amcharacteristicmcommonmtomgovernmentsmand mnot-for-profit morganizationsmismthat mtheymdomnot
exist mtomprovidemgoodsmormservicesmat mamprofit mormprofit mequivalent.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
8) Themneedsmof musersmof mgovernment mfinancialmreportsmaremthemsamemasmthosemof musersmof mbusin
essmentitymfinancialmreports.
Answer:m FALSEmDi
fficulty:m2mMedium
Topic:m m DistinguishingmGovernment mand mNot-For-Profit mOrganizations
LearningmObjective:m 01-
01mIdentifymand mexplainmthemcharacteristicsmthat mdistinguishmgovernment mand mnot-for-
profit mentitiesmfrommfor-profit mentities.
Bloom's:m m Understand
AACSB:m KnowledgemApplicationmAI
CPA:m BBmIndustry
9) ThemFederalmAccountingmStandardsmAdvisorymBoard m(FASAB)mrecommendsmaccountin
gmprinciplesmand mstandardsmformthemfederalmgovernment mand mitsmagenciesmand mdepartment
s.
Answer:m TRUEm
Difficulty:m1mEas
y
Topic:m m Sourcesmof mfinancialmreportingmstandards
LearningmObjective:m 01-
02mIdentifymthemauthoritativembodiesmresponsible mformsettingmfinancialmreportingm standardsmfo
rm(1)m statemand mlocalmgovernments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.
Bloom's:m m Remember
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
3
, 10) ThemFASB,mGASB,mandmFASABmallmfocusmtheirmstandardsmonmbothminternalmandmexternalmfinanc
ialmreporting.
Answer:m FALSEmDi
fficulty:m2mMedium
Topic:m m Objectivesmof mfinancialmreporting
LearningmObjective:m 01-
03mContrast mand mcomparemthemobjectivesmof mfinancialmreportingmform(1)mstatemand mlocalmgovern
ments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.mBloom's:m Understand
AACSB:m KnowledgemApplication
mAICPA:m BB mIndustry
11) Interperiod mequitymrefersmtomthemconcept mthat mcurrent-
yearmrevenuesmaremsufficient mtompaymformservicesmprovided mthat myear,msomthat mfuturemtaxpayersmwil
lmnot mbemrequired mtomassumemthemburdenmformservicesmpreviouslymprovided.
Answer:m TRUEmDiff
iculty:m2mMedium
Topic:m m Objectivesmof mfinancialmreporting
LearningmObjective:m 01-
03mContrast mand mcomparemthemobjectivesmof mfinancialmreportingmform(1)mstatemand mlocalmgovern
ments,m(2)mthemfederalmgovernment,mand m(3)mnot-for-
profit morganizations.mBloom's:m Understand
AACSB:m KnowledgemApplication
mAICPA:m FN mReporting
12) Themminimummrequirementsmformgeneralmpurposemexternalmfinancialm reportingmarem(1) mmanag
ement'smdiscussionmand manalysism(MD&A),m(2)mthembasic mfinancial mstatements,mincludingmthemnote
smtomthemfinancialmstatements,mand m(3)mcombiningmand mindividualmfund mfinancialmstatements.
Answer:m FALSE
mDifficulty:m1mEas
y
Topic:m m FinancialmReportingmof mStatemand mLocalmGovernments
LearningmObjective:m 01-
04mExplainmthemminimummrequirementsmformgeneralmpurposemexternalmfinancial mreporting mformstat
emand mlocalmgovernmentsmand mhow mtheymrelatemtomcomprehensivemannualmfinancialm reports.
Bloom's:m m Remember
AACSB:m KnowledgemApplicationmAI
CPA:m FNmReporting
4
