TEST BANK FOR Loose-Leaf for Accounting for Governmental & Nonprofit Entities 19th Edition by Jacqueline L. Reck , Suzanne Lowensohn , Daniel Neely ISBN: 978-1264071180 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!! NEW LATEST UPD

Test Bank for Accounting for
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Governmental & Nonprofit Entities mf mf mf mf




19th Edition by Jacqueline L. Reck, S
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uzanne Lowensohn & Daniel Neely
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Complete Chapters With Verified Q&As| A+ P ASS A
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nswers at the Back of Each Chapter
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, Chapter 1 mf




1) Explain the essential differences between general purpose and special purpose governments and giv
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e several examples of each.
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2) Identify and explain the characteristics that distinguish governments and not-for-
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profit entities from business entities.
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3) GASB and FASB standards are concerned only with external financial reporting; whereas, FASA
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B standards are concerned with both internal and external financial reporting. Do you agree with thi
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s statement? Why or why not?
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4) Why should persons interested in reading financial reports of governments and not-for-
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profit entities be familiar with standards set by the GASB and the FASB?
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5) Explain in your own words why accountability is the cornerstone of all financial reporting i
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n government.
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,6) In your own words state the primary needs the GASB believes external users have for financial repor
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ts of state and local governments. For contrast, state the uses the FASB believes external users have for
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the financial reports of not-for-profit organizations.
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7) Describe the difference between a comprehensive annual financial report (CAFR) and GASB genera
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l purpose external financial reporting for state and local governments.
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8) Identify and briefly explain the four sections of the performance and accountability report (PAR) th
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at the Office of Management and Budget requires major federal departments and agencies to prepare.
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9) Explain the concepts of fiscal and operational accountability and the basis of accounting used t
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o capture each concept.
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10) Describe the comprehensive annual financial report (CAFR). What are the sections of the report an
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d which components of the organization should it include? Is a CAFR required?
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, 11) The Governmental Accounting Standards Board is assigned responsibility for setting accounting an
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d financial reporting standards for which of the following?
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A) Governments such as federal agencies, states, cities, counties, villages, and townships.
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B) State and local government entities and governmentally-
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related units and agencies, such as utilities, authorities, hospitals, and colleges and universities.
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C) Not-for-profit o rganizations. mf




D) State and local governments and all not-for-profit organizations.
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12) Which of the following bodies has been established to recommend accounting and financial reportin
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g standards for the federal government?
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A) Financial Accounting Standards Board (FASB).
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B) Governmental Accounting Standards Board (GASB). mf mf mf mf




C) Federal Accounting Foundation (FAF).
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D) Federal Accounting Standards Advisory Board (FASAB).
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13) The Financial Accounting Standards Board has the responsibility for setting accounting and financia
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l reporting standards for which of the following?
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A) All not-for-profit organizations that are nongovernmental and business entities.
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B) All not-for-profit organizations and business entities.
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C) All not-for-profit organizations.
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D) Special purpose governments with a business purpose.
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14) You are trying to decide if an entity you are reviewing is a government or a not-for-
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profit. Which of the following would indicate it is a government rather than a not-for-profit entity?
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A) Absence of profit motive. mf mf mf




B) A primary source of revenues is taxes.
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