TEST BANK For Accounting for Governmental and Nonprofit Entities 19th Edition by Neely, Reck, Lowensohn and Wilson, All 1-17 Chapters Covered ,Latest Edition

Version 1 1

,Student name:
hp




1) Explain the essential differences between general purpose and special
hp hp hp hp hp hp hp hp


purpose governments and give several examples of each.
hp hp hp hp hp hp hp hp




2) Identify and explain the characteristics that distinguish governments and not-for-
hp hp hp hp hp hp hp hp hp


profit entities from business entities.
hp hp hp hp




3) GASB and FASB standards are concerned only with external financial reporting;
hp hp hp hp hp hp hp hp hp hp



whereas, FASAB standards are concerned with both internal and external financial
hp hp hp hp hp hp hp hp hp hp hp


reporting. Do you agree with this statement? Why or why not?
hp hp hp hp hp hp hp hp hp hp hp




4) Why should persons interested in reading financial reports of governments and
hp hp hp hp hp hp hp hp hp hp



not-for- profit entities be familiar with standards set by the GASB and the FASB?
hp hp hp hp hp hp hp hp hp hp hp hp hp hp




Version 1 2

,5) Explain in your own words why accountability is the cornerstone of all
hp hp hp hp hp hp hp hp hp hp hp



financial reporting in government.
hp hp hp hp




6) In your own words state the primary needs the GASB believes external users
hp hp hp hp hp hp hp hp hp hp hp hp



have for financial reports of state and local governments. For contrast, state the uses
hp hp hp hp hp hp hp hp hp hp hp hp hp hp


the FASB believes external users have for the financial reports of not-for-profit
hp hp hp hp hp hp hp hp hp hp hp hp


organizations.
hp




7) Describe the difference between a comprehensive annual financial report (CAFR)
hp hp hp hp hp hp hp hp hp


and GASB general purpose external financial reporting for state and local
hp hp hp hp hp hp hp hp hp hp hp



governments.
hp




8) Identify and briefly explain the four sections of the performance and accountability
hp hp hp hp hp hp hp hp hp hp hp



report (PAR) that the Office of Management and Budget requires major federal
hp hp hp hp hp hp hp hp hp hp hp hp


departments and agencies to prepare.
hp hp hp hp hp




Version 1 3

, 9) Explain the concepts of fiscal and operational accountability and the basis of
hp hp hp hp hp hp hp hp hp hp hp


accounting used to capture each concept.
hp hp hp hp hp hp




10) Describe the comprehensive annual financial report (CAFR). What are the sections
hp hp hp hp hp hp hp hp hp hp


of the report and which components of the organization should it include? Is a CAFR
hp hp hp hp hp hp hp hp hp hp hp hp hp hp hp



required?
hp




11) The Governmental Accounting Standards Board is assigned responsibility for
hp hp hp hp hp hp hp hp


setting accounting and financial reporting standards for which of the following?
hp hp hp hp hp hp hp hp hp hp hp




A) Governments such as federal agencies, states, cities, counties, villages,
hp hp hp hp hp hp hp hp



and townships.
hp hp


B) State and local government entities and governmentally-related units and
hp hp hp hp hp hp hp hp



agencies, such as utilities, authorities, hospitals, and colleges and universities.
hp hp hp hp hp hp hp hp hp hp



C) Not-for-profit organizations. hp


D) State and local governments and all not-for-profit organizations.
hp hp hp hp hp hp hp




Version 1 4