TEST BANK FOR ACCOUNTING FOR
#fg #fg #fg #fg
GOVERNMENTAL & NONPROFIT
#fg #fg #fg
ENTITIES 17TH EDITION
#fg # f g #fg
JACQUELINE RECK, SUZANNE
#fg #fg #fg
LOWENSOHN, EARL WILSON
#fg #fg #fg
SCHOLARVAULT
, Chapter
#fg01 #fg Introduction to Accounting and Financial
Reporting for Governmental and Not-for-Profit Entities
True / False Questions
1. Special purpose governments generally provide a wider range of services to their
residents than do general purpose governments.
True False
2. Examples of general purpose governments include cities, towns, and public schools that
receive tax revenue to finance the services they provide.
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.
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 governmental nor not-for-profit entities have residual equity that can be
distributed to owners.
True False
7. A characteristic common to governmental and not-for-profit organizations is that they do
not exist to provide goods or services at a profit or profit equivalent.
True False
8. The needs of users of government financial reports are the same as those of users of
business entity financial reports.
SCHOLARVAULT
,True False
9. The #fgFederal #fgAccounting #fgStandards #fgAdvisory #fgBoard #fg(FASAB) #fgrecommends
#fgaccounting #fgprinciples #fgand #fgstandards #fgfor #fgthe #fgfederal #fggovernment #fgand #fgits #fgagencies
#fgand #fgdepartments.
True False
10. The #fgFASB, #fgGASB, #fgand #fgFASAB #fgidentify #fgprimarily #fgexternal #fgusers #fgas #fgthe
#fgfocus #fgof #fgtheir #fgfinancial #fgreports.
True False
11. Interperiod #fgequity #fgrefers #fgto #fgthe #fgconcept #fgthat #fgcurrent-year #fgrevenues #fgare #fgsufficient
#fgto #fgpay #fgfor #fgservices #fgprovided #fgduring #fgthe #fg year, #fgso #fgthat #fgfuture #fgtaxpayers #fgwill #fgnot #fgbe
#fgrequired #fgto #fgassume #fgthe #fgburden #fgfor #fgservices #fgpreviously #fgprovided.
True False
12. The #fgminimum #fgrequirements #fgfor #fggeneral #fgpurpose #fgexternal #fgfinancial #fgreporting #fgare
#fg(1) #fgmanagement's #fgdiscussion #fgand #fganalysis #fg(MD&A), #fg(2) #fgthe #fgbasic #fgfinancial
#fgstatements, #fgincluding #fgthe #fgnotes #fgto #fgthe #fgfinancial #fgstatements, #fgand #fg(3) #fgcombining #fgand
#fgindividual #fgfund #fgfinancial #fgstatements.
True False
13. The #fgFinancial #fgAccounting #fgFoundation #fghas #fgoversight #fgover #fgboth #fgFASB #fgand
#fg
GASB. #fgTrue False
#fg
14. In #fgaddition #fgto #fgfinancial #fgstatements #fgand #fgnotes, #fgGASB #fgrequires #fggovernments
#fgto #fgprovide #fginformation #fgon #fgservice #fgefforts #fgand #fgaccomplishments #fg(SEA) #fgin #fgtheir
#fgreports #fgto #fgthe #fgpublic.
True False
15. Providing #fginformation #fgon #fgaccountability #fgis #fgthe #fgprimary #fgfinancial #fgreporting
#fgobjective #fgfor #fgboth #fggovernmental #fgand #fgnot-for-profit #fgentities.
True False
16. A #fgdifference #fgin #fgthe #fgfinancial #fgreporting #fgobjectives #fgfor #fggovernmental #fgentities #fgand
#fgnot-for- #fgprofit #fgentities #fgis #fgthat #fggovernmental #fgentities #fgreport #fgon #fgcompliance #fgwith #fglaws,
#fgregulations, #fgand #fgrules #fgthat #fgimpact #fgfinancial #fgreports.
True False
17. Since #fgneither #fggovernmental #fgnor #fgnot-for-profit #fgentities #fghave #fginvestors, #fgthe
#fgfinancial #fgreporting #fgobjectives #fgare #fgthe #fgsame #fgfor #fgboth #fgtypes #fgof #fgentities.
SCHOLARVAULT
, True False
18. The #fgGASB #fgprovides #fgoptional #fgguidance #fgfor #fgthose #fgentities #fgproviding #fgservice
#fgefforts #fgand #fgaccomplishments #fg(SEA) #fgreports #fgto #fgthe #fgpublic.
True False
19. The #fgOffice #fgof #fgManagement #fgand #fgBudget #fg(OMB) #fgrequires #fgmajor #fgfederal
#fgdepartments #fgand #fgagencies #fgto #fgprepare #fgan #fgannual #fgperformance #fgreport.
True False
20. The #fgFASB #fgstandards #fgrequire #fgnot-for-profit #fgentities #fgto #fgreport #fgnet #fgassets #fgin #fgthree
#fgcategories: #fgunrestricted, #fgrestricted, #fgand #fgnet #fginvestment #fgin #fgcapital #fgassets.
True False
21. The #fgFASB #fgstandards #fgrequire #fgnot-for-profit #fgentities #fgto #fgseparately #fgreport #fgprogram
#fgexpenses #fgand #fgsupport #fgexpenses.
True False
22. The #fggovernmental #fgfund #fgfinancial #fgstatements #fgare #fgintended #fgto #fgreport
#fgon #fgfiscal #fgaccountability.
True False
23. The #fggovernmental #fgfund #fgfinancial #fgstatements #fgare #fguseful #fgin #fgassessing
#fgoperational #fgaccountability.
True False
24. Government-wide #fgfinancial #fgstatements #fgare #fgprepared #fgusing #fgthe #fgaccrual #fgbasis #fgof
#fgaccounting.
True False
25. Both #fgthe #fgGASB #fgand #fgthe #fgFASB #fgrequire #fgentities #fgto #fginclude #fga #fgmanagement
#fgdiscussion #fgand #fganalysis #fgin #fgthe #fgfinancial #fgreports.
True False
SCHOLARVAULT
#fg #fg #fg #fg
GOVERNMENTAL & NONPROFIT
#fg #fg #fg
ENTITIES 17TH EDITION
#fg # f g #fg
JACQUELINE RECK, SUZANNE
#fg #fg #fg
LOWENSOHN, EARL WILSON
#fg #fg #fg
SCHOLARVAULT
, Chapter
#fg01 #fg Introduction to Accounting and Financial
Reporting for Governmental and Not-for-Profit Entities
True / False Questions
1. Special purpose governments generally provide a wider range of services to their
residents than do general purpose governments.
True False
2. Examples of general purpose governments include cities, towns, and public schools that
receive tax revenue to finance the services they provide.
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.
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 governmental nor not-for-profit entities have residual equity that can be
distributed to owners.
True False
7. A characteristic common to governmental and not-for-profit organizations is that they do
not exist to provide goods or services at a profit or profit equivalent.
True False
8. The needs of users of government financial reports are the same as those of users of
business entity financial reports.
SCHOLARVAULT
,True False
9. The #fgFederal #fgAccounting #fgStandards #fgAdvisory #fgBoard #fg(FASAB) #fgrecommends
#fgaccounting #fgprinciples #fgand #fgstandards #fgfor #fgthe #fgfederal #fggovernment #fgand #fgits #fgagencies
#fgand #fgdepartments.
True False
10. The #fgFASB, #fgGASB, #fgand #fgFASAB #fgidentify #fgprimarily #fgexternal #fgusers #fgas #fgthe
#fgfocus #fgof #fgtheir #fgfinancial #fgreports.
True False
11. Interperiod #fgequity #fgrefers #fgto #fgthe #fgconcept #fgthat #fgcurrent-year #fgrevenues #fgare #fgsufficient
#fgto #fgpay #fgfor #fgservices #fgprovided #fgduring #fgthe #fg year, #fgso #fgthat #fgfuture #fgtaxpayers #fgwill #fgnot #fgbe
#fgrequired #fgto #fgassume #fgthe #fgburden #fgfor #fgservices #fgpreviously #fgprovided.
True False
12. The #fgminimum #fgrequirements #fgfor #fggeneral #fgpurpose #fgexternal #fgfinancial #fgreporting #fgare
#fg(1) #fgmanagement's #fgdiscussion #fgand #fganalysis #fg(MD&A), #fg(2) #fgthe #fgbasic #fgfinancial
#fgstatements, #fgincluding #fgthe #fgnotes #fgto #fgthe #fgfinancial #fgstatements, #fgand #fg(3) #fgcombining #fgand
#fgindividual #fgfund #fgfinancial #fgstatements.
True False
13. The #fgFinancial #fgAccounting #fgFoundation #fghas #fgoversight #fgover #fgboth #fgFASB #fgand
#fg
GASB. #fgTrue False
#fg
14. In #fgaddition #fgto #fgfinancial #fgstatements #fgand #fgnotes, #fgGASB #fgrequires #fggovernments
#fgto #fgprovide #fginformation #fgon #fgservice #fgefforts #fgand #fgaccomplishments #fg(SEA) #fgin #fgtheir
#fgreports #fgto #fgthe #fgpublic.
True False
15. Providing #fginformation #fgon #fgaccountability #fgis #fgthe #fgprimary #fgfinancial #fgreporting
#fgobjective #fgfor #fgboth #fggovernmental #fgand #fgnot-for-profit #fgentities.
True False
16. A #fgdifference #fgin #fgthe #fgfinancial #fgreporting #fgobjectives #fgfor #fggovernmental #fgentities #fgand
#fgnot-for- #fgprofit #fgentities #fgis #fgthat #fggovernmental #fgentities #fgreport #fgon #fgcompliance #fgwith #fglaws,
#fgregulations, #fgand #fgrules #fgthat #fgimpact #fgfinancial #fgreports.
True False
17. Since #fgneither #fggovernmental #fgnor #fgnot-for-profit #fgentities #fghave #fginvestors, #fgthe
#fgfinancial #fgreporting #fgobjectives #fgare #fgthe #fgsame #fgfor #fgboth #fgtypes #fgof #fgentities.
SCHOLARVAULT
, True False
18. The #fgGASB #fgprovides #fgoptional #fgguidance #fgfor #fgthose #fgentities #fgproviding #fgservice
#fgefforts #fgand #fgaccomplishments #fg(SEA) #fgreports #fgto #fgthe #fgpublic.
True False
19. The #fgOffice #fgof #fgManagement #fgand #fgBudget #fg(OMB) #fgrequires #fgmajor #fgfederal
#fgdepartments #fgand #fgagencies #fgto #fgprepare #fgan #fgannual #fgperformance #fgreport.
True False
20. The #fgFASB #fgstandards #fgrequire #fgnot-for-profit #fgentities #fgto #fgreport #fgnet #fgassets #fgin #fgthree
#fgcategories: #fgunrestricted, #fgrestricted, #fgand #fgnet #fginvestment #fgin #fgcapital #fgassets.
True False
21. The #fgFASB #fgstandards #fgrequire #fgnot-for-profit #fgentities #fgto #fgseparately #fgreport #fgprogram
#fgexpenses #fgand #fgsupport #fgexpenses.
True False
22. The #fggovernmental #fgfund #fgfinancial #fgstatements #fgare #fgintended #fgto #fgreport
#fgon #fgfiscal #fgaccountability.
True False
23. The #fggovernmental #fgfund #fgfinancial #fgstatements #fgare #fguseful #fgin #fgassessing
#fgoperational #fgaccountability.
True False
24. Government-wide #fgfinancial #fgstatements #fgare #fgprepared #fgusing #fgthe #fgaccrual #fgbasis #fgof
#fgaccounting.
True False
25. Both #fgthe #fgGASB #fgand #fgthe #fgFASB #fgrequire #fgentities #fgto #fginclude #fga #fgmanagement
#fgdiscussion #fgand #fganalysis #fgin #fgthe #fgfinancial #fgreports.
True False
SCHOLARVAULT
