TEST BANK
Version 1
TEST BANK 1
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) General purpose governments generally provide a wider range of services to their
residents than do special purpose governments.
⊚ true
⊚ false
2) Examples of general purpose governments include cities, towns, and independent public
school districts.
⊚ true
⊚ false
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.
⊚ true
⊚ false
4) The Governmental Accounting Standards Board (GASB) is the body authorized to
establish accounting principles for all government entities.
Version 1 2
, ⊚ true
⊚ false
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
⊚ true
⊚ false
6) Neither governments nor not-for-profit entities have residual equity that can be
distributed to owners.
⊚ true
⊚ false
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.
⊚ true
⊚ false
Version 1 3
, 8) The needs of users of government financial reports are the same as those of users of
business entity financial reports.
⊚ true
⊚ false
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.
⊚ true
⊚ false
10) The FASB, GASB, and FASAB all focus their standards on both internal and external
financial reporting.
⊚ true
⊚ false
11) Interperiod equity refers to the concept that current-year revenues are sufficient to pay for
services provided that year, so that future taxpayers will not be required to assume the burden for
services previously provided.
⊚ true
⊚ false
Version 1 4
Version 1
TEST BANK 1
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) General purpose governments generally provide a wider range of services to their
residents than do special purpose governments.
⊚ true
⊚ false
2) Examples of general purpose governments include cities, towns, and independent public
school districts.
⊚ true
⊚ false
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.
⊚ true
⊚ false
4) The Governmental Accounting Standards Board (GASB) is the body authorized to
establish accounting principles for all government entities.
Version 1 2
, ⊚ true
⊚ false
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
⊚ true
⊚ false
6) Neither governments nor not-for-profit entities have residual equity that can be
distributed to owners.
⊚ true
⊚ false
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.
⊚ true
⊚ false
Version 1 3
, 8) The needs of users of government financial reports are the same as those of users of
business entity financial reports.
⊚ true
⊚ false
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
principles and standards for the federal government and its agencies and departments.
⊚ true
⊚ false
10) The FASB, GASB, and FASAB all focus their standards on both internal and external
financial reporting.
⊚ true
⊚ false
11) Interperiod equity refers to the concept that current-year revenues are sufficient to pay for
services provided that year, so that future taxpayers will not be required to assume the burden for
services previously provided.
⊚ true
⊚ false
Version 1 4
