Test Bank for Accounting for Governmental & Nonprofit Entities 19th Edition by Jacqueline L. Reck, Suzanne Lowensohn & Daniel Neely Complete Chapters With Verified Q&As | Answers at the End of Each Chapter

Test Bank for Accounting for Governmental & Nonprofit Entities 19th Edition by Jacqueline L. Reck, Suzanne Lowensohn & Daniel Neely Complete Chapters With Verified Q&As | Answers at the End of Each Chapter. 1) Explain the essential differences between general purpose and special purpose governments and give several examples of each. 2) Identify and explain the characteristics that distinguish governments and not-for-profit entities from business entities. 3) GASB and FASB standards are concerned only with external financial reporting; whereas, FASAB standards are concerned with both internal and external financial reporting. Do you agree with this statement? Why or why not? Franklyn A Plus Pass 3 | P a g e government. 6) In your own words state the primary needs the GASB believes external users have for financial reports of state and local governments. For contrast, state the uses the FASB believes external users have for the financial reports of not-for-profit organizations. 7) Describe the difference between a comprehensive annual financial report (CAFR) and GASB general purpose external financial reporting for state and local governments. 4) Why should persons interested in reading financial reports of governments and not-for- profit entities be familiar with standards set by the GASB and the FASB? 5) Explain in your own words why accountability is the cornerstone of all financial reporting in Franklyn A Plus Pass 4 | P a g e capture each concept. 8) Identify and briefly explain the four sections of the performance and accountability report (PAR) that the Office of Management and Budget requires major federal departments and agencies to prepare. 11) The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for which of the following? 9) Explain the concepts of fiscal and operational accountability and the basis of accounting used to 10) Describe the comprehensive annual financial report (CAFR). What are the sections of the report and which components of the organization should it include? Is a CAFR required? Franklyn A Plus Pass 5 | P a g e A) Governments such as federal agencies, states, cities, counties, villages, and townships. B) State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities. C) Not-for-profit organizations. D) State and local governments and all not-for-profit organizations. 13) The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for which of the following? Franklyn A Plus Pass 6 | P a g e A) Absence of profit motive. C) Resource providers do not expect benefits proportional to the resources provided. D) Absence of a defined ownership interest that can be sold, transferred, or redeemed. 15) Which of the following is identified by the GASB as the "cornerstone" of all financial reporting in government? A) Decision usefulness. B) Stewardship. C) Accountability. D) Interperiod equity. 16) Which of the following organizations issue standards that focus on both internal and external financial reporting? A) All not-for-profit organizations that are nongovernmental and business entities. B) All not-for-profit organizations and business entities. C) All not-for-profit organizations. D) Special purpose governments with a business purpose. 14) You are trying to decide if an entity you are reviewing is a government or a not-for- profit. Which of the following would indicate it is a government rather than a not-for-profit entity? B) A primary source of revenues is taxes. Franklyn A Plus Pass 7 | P a g e A) Federal Accounting Standards Advisory Board. B) Governmental Accounting Standards Board. C) Financial Accounting Standards Board. D) American Institute of CPAs. A) Decision usefulness. B) Accountability. C) Understandability. D) Budget integrity. C) To assist financial report users in comparing actual financial results with the legally adopted budget. D) To assist in determining compliance with finance-related laws, rules, and regulations.