Test Bank for Accounting for Governmental & Nonprofit Entities, 19th Edition – Complete Chapters with Verified Q&A

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




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+ PASS A
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nswers at the Back of Each Chapter
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, Chapterp1

1) Explainpthepessentialpdifferencespbetweenpgeneralppurposepandpspecialppurposepgovernmentspandpgivep
severalpexamplespofpeach.




2) Identifypandpexplainpthepcharacteristicspthatpdistinguishpgovernmentspandpnot-for-
profitpentitiespfrompbusinesspentities.




3) GASBpandpFASBpstandardsparepconcernedponlypwithpexternalpfinancialpreporting;pwhereas,pFASABp
standardsparepconcernedpwithpbothpinternalpandpexternalpfinancialpreporting.pDopyoupagreepwithpthispstat
ement?pWhyporpwhypnot?




4) Whypshouldppersonspinterestedpinpreadingpfinancialpreportspofpgovernmentspandpnot-for-
pprofitpentitiespbepfamiliarpwithpstandardspsetpbypthepGASBpandpthepFASB?




5) Explainpinpyourpownpwordspwhypaccountabilitypispthepcornerstonepofpallpfinancialpreportingpinp
government.

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,6) InpyourpownpwordspstatepthepprimarypneedspthepGASBpbelievespexternalpusersphavepforpfinancialpreportsp
ofpstatepandplocalpgovernments.pForpcontrast,pstatepthepusespthepFASBpbelievespexternalpusersphavepforpthepf
inancialpreportspofpnot-for-profitporganizations.




7) Describepthepdifferencepbetweenpapcomprehensivepannualpfinancialpreportp(CAFR)pandpGASBpgeneralp
purposepexternalpfinancialpreportingpforpstatepandplocalpgovernments.




8) Identifypandpbrieflypexplainpthepfourpsectionspofpthepperformancepandpaccountabilitypreportp(PAR)pthatpt
hepOfficepofpManagementpandpBudgetprequirespmajorpfederalpdepartmentspandpagenciesptopprepare.




9) Explainpthepconceptspofpfiscalpandpoperationalpaccountabilitypandpthepbasispofpaccountingpusedptop
capturepeachpconcept.




10) Describepthepcomprehensivepannualpfinancialpreportp(CAFR).pWhatparepthepsectionspofpthepreportpandp
whichpcomponentspofptheporganizationpshouldpitpinclude?pIspapCAFRprequired?




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, 11) ThepGovernmentalpAccountingpStandardspBoardpispassignedpresponsibilitypforpsettingpaccountingpandp
financialpreportingpstandardspforpwhichpofpthepfollowing?

A) Governmentspsuchpaspfederalpagencies,pstates,pcities,pcounties,pvillages,pandptownships.

B) Statepandplocalpgovernmentpentitiespandpgovernmentally-
relatedpunitspandpagencies,psuchpasputilities,pauthorities,phospitals,pandpcollegespandpuniversities.

C) Not-for-profitporganizations.

D) Statepandplocalpgovernmentspandpallpnot-for-profitporganizations.



12) Whichpofpthepfollowingpbodiesphaspbeenpestablishedptoprecommendpaccountingpandpfinancialpreportingp
standardspforpthepfederalpgovernment?

A) FinancialpAccountingpStandardspBoardp(FASB).

B) GovernmentalpAccountingpStandardspBoardp(GASB).

C) FederalpAccountingpFoundationp(FAF).

D) FederalpAccountingpStandardspAdvisorypBoardp(FASAB).




13) ThepFinancialpAccountingpStandardspBoardphaspthepresponsibilitypforpsettingpaccountingpandpfinancialp
reportingpstandardspforpwhichpofpthepfollowing?

A) Allpnot-for-profitporganizationspthatparepnongovernmentalpandpbusinesspentities.

B) Allpnot-for-profitporganizationspandpbusinesspentities.

C) Allpnot-for-profitporganizations.

D) Specialppurposepgovernmentspwithpapbusinessppurpose.




14) Youpareptryingptopdecidepifpanpentitypyouparepreviewingpispapgovernmentporpapnot-for-
pprofit.pWhichpofpthepfollowingpwouldpindicatepitpispapgovernmentpratherpthanpapnot-for-profitpentity?



A) Absencepofpprofitpmotive.

B) Apprimarypsourcepofprevenuespisptaxes.



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