TEST BANK FOR ACCOUNTING FOR
GOVERNMENTAL AND NONPROFIT
ENTITIES
MICROBIOLOGY PRACTICE EXAM
QUESTIONS WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1) General purpose governments - ANSWER governments that provide a wide range
of services to their residents (such as police and fire protection; sanitation;
construction and maintenance of streets, roads, and bridges; and health and welfare).
States, counties, municipalities, and townships are examples.
2) Special purpose governments - ANSWER governments that provide only a single
function or a limited number of functions (such as education, drainage and flood
control, irrigation, soil and water conservation, fire protection, and water supply).
Independent school districts, public colleges and universities, and special districts are
examples.
3) Governmental Accounting Standards Board - ANSWER distinguishes
governmental entities in the U.S. from both not-for-profit and business entities by
stressing that governments exist in an environment in which the power ultimately
rests in the hands of the people.
4) Federal Accounting Standards Advisory Board - ANSWER recommends
accounting principles and standards for the federal government and its agencies.
,5) accountability - ANSWER the cornerstone of all financial reporting in
government. Requires governments to answer to the citizenry -- to justify the raising
of public resources and the purposes for which they are used.
6) Inter period equity - ANSWER a significant part of accountability and is
fundamental to public administration. Needs to be considered when establishing
financial reporting objectives.
7) Government-wide and fund - ANSWER two categories of basic financial
statements prescribed by GASBS 34.
8) Government-wide financial statements - ANSWER intended to provide an
aggregated overview of a government's net position and changes in net position.
9) operational accountability - ANSWER whether the gov't has used its resources
efficiently and effectively in meeting operating objectives.
10) fund financial statements - ANSWER provide more detailed financial info about
the government
11) Comprehensive annual financial report - ANSWER a gov'ts annual report that
contains three sections - introductory, financial, and statistical. Provides financial info
beyond the general purpose external F/S and conforms to guidance in the GASB
codification.
12) Performance and accountability report - ANSWER A report required to be
prepared by major federal departments and agencies under the office of management
and budget's Circular A-136. It includes annual performance report, annual F/S, and a
variety of mgt reports on internal control and other accountability issues.
13) Donor-imposed restrictions - ANSWER Donor stipulations that specify use for a
contributed asset that is more specific than broad limits resulting from the nature of
the not-for-profit entity, the environment in which it operates, or the purposes
specified in its articles of incorporation or bylaws. May be temporary or permanent.
,14) Service efforts and accomplishments - ANSWER A conceptualization of the
resources consumed (inputs), tasks performed (outputs), goals attained (outcomes),
and the relationship among these items in providing services in selected areas (e.g.
police protection, solid waste garbage collection, and elementary and secondary
education).
15) Fiduciary relationship - ANSWER A relationship where assets are controlled by
the government, which does not benefit from the assets, and the assets were not
generated by the government's revenues.
16) Custodial funds - ANSWER Fiduciary funds that hold assets benefiting parties
outside of the government administering the fund, with no administrative decision-
making power.
17) Investment trust funds - ANSWER Fiduciary funds that report the purpose,
accounting, and financial reporting for investment trust funds.
18) Fiduciary fund financial statements - ANSWER Financial statements prepared for
fiduciary funds.
19) Identifying fiduciary activities - ANSWER Three criteria for determining the
presence of a fiduciary relationship: controlled assets, no benefit to the government,
and assets not generated by government revenues.
20) Custodial fund transactions - ANSWER Transactions related to custodial funds,
such as taxes receivable, due to other funds, and property tax collections for other
governments.
21) Cash - ANSWER The amount of money held in the custodial fund.
22) Taxes receivable for other funds and governments - ANSWER Amounts owed to
the custodial fund for taxes from other funds and governments.
23) Taxes collected - ANSWER The amount of taxes collected by the custodial fund.
, 24) Administrative fee - ANSWER A fee deducted from the custodial fund for
administrative purposes.
25) Due to other funds - ANSWER Amounts owed by the custodial fund to other
funds.
26) Deductions - ANSWER Amounts deducted from the custodial fund, such as
administrative fees and payments of property taxes to other governments.
27) General fund - ANSWER A fund that holds cash, taxes receivable, and revenues
for general purposes.
28) Capital projects fund - ANSWER A fund that holds cash, taxes receivable, and
revenues for capital projects.
29) Debt service fund - ANSWER A fund that holds cash, taxes receivable, and
revenues for debt service.
30) Welfare fund - ANSWER A fund that holds cash, taxes receivable, and revenues
for welfare purposes.
31) Closing entry - ANSWER An entry made at the end of a period to transfer
balances from temporary accounts to permanent accounts.
32) Pass-through custodial funds - ANSWER Funds that receive grants, entitlements,
or shared revenues from a primary recipient and distribute them to a secondary
recipient.
33) Administrative involvement - ANSWER Involvement in monitoring compliance,
determining eligibility, or exercising discretion in allocation of funds.
34) Direct financial involvement - ANSWER Involvement in financing program costs
or being liable for disallowed costs.
GOVERNMENTAL AND NONPROFIT
ENTITIES
MICROBIOLOGY PRACTICE EXAM
QUESTIONS WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1) General purpose governments - ANSWER governments that provide a wide range
of services to their residents (such as police and fire protection; sanitation;
construction and maintenance of streets, roads, and bridges; and health and welfare).
States, counties, municipalities, and townships are examples.
2) Special purpose governments - ANSWER governments that provide only a single
function or a limited number of functions (such as education, drainage and flood
control, irrigation, soil and water conservation, fire protection, and water supply).
Independent school districts, public colleges and universities, and special districts are
examples.
3) Governmental Accounting Standards Board - ANSWER distinguishes
governmental entities in the U.S. from both not-for-profit and business entities by
stressing that governments exist in an environment in which the power ultimately
rests in the hands of the people.
4) Federal Accounting Standards Advisory Board - ANSWER recommends
accounting principles and standards for the federal government and its agencies.
,5) accountability - ANSWER the cornerstone of all financial reporting in
government. Requires governments to answer to the citizenry -- to justify the raising
of public resources and the purposes for which they are used.
6) Inter period equity - ANSWER a significant part of accountability and is
fundamental to public administration. Needs to be considered when establishing
financial reporting objectives.
7) Government-wide and fund - ANSWER two categories of basic financial
statements prescribed by GASBS 34.
8) Government-wide financial statements - ANSWER intended to provide an
aggregated overview of a government's net position and changes in net position.
9) operational accountability - ANSWER whether the gov't has used its resources
efficiently and effectively in meeting operating objectives.
10) fund financial statements - ANSWER provide more detailed financial info about
the government
11) Comprehensive annual financial report - ANSWER a gov'ts annual report that
contains three sections - introductory, financial, and statistical. Provides financial info
beyond the general purpose external F/S and conforms to guidance in the GASB
codification.
12) Performance and accountability report - ANSWER A report required to be
prepared by major federal departments and agencies under the office of management
and budget's Circular A-136. It includes annual performance report, annual F/S, and a
variety of mgt reports on internal control and other accountability issues.
13) Donor-imposed restrictions - ANSWER Donor stipulations that specify use for a
contributed asset that is more specific than broad limits resulting from the nature of
the not-for-profit entity, the environment in which it operates, or the purposes
specified in its articles of incorporation or bylaws. May be temporary or permanent.
,14) Service efforts and accomplishments - ANSWER A conceptualization of the
resources consumed (inputs), tasks performed (outputs), goals attained (outcomes),
and the relationship among these items in providing services in selected areas (e.g.
police protection, solid waste garbage collection, and elementary and secondary
education).
15) Fiduciary relationship - ANSWER A relationship where assets are controlled by
the government, which does not benefit from the assets, and the assets were not
generated by the government's revenues.
16) Custodial funds - ANSWER Fiduciary funds that hold assets benefiting parties
outside of the government administering the fund, with no administrative decision-
making power.
17) Investment trust funds - ANSWER Fiduciary funds that report the purpose,
accounting, and financial reporting for investment trust funds.
18) Fiduciary fund financial statements - ANSWER Financial statements prepared for
fiduciary funds.
19) Identifying fiduciary activities - ANSWER Three criteria for determining the
presence of a fiduciary relationship: controlled assets, no benefit to the government,
and assets not generated by government revenues.
20) Custodial fund transactions - ANSWER Transactions related to custodial funds,
such as taxes receivable, due to other funds, and property tax collections for other
governments.
21) Cash - ANSWER The amount of money held in the custodial fund.
22) Taxes receivable for other funds and governments - ANSWER Amounts owed to
the custodial fund for taxes from other funds and governments.
23) Taxes collected - ANSWER The amount of taxes collected by the custodial fund.
, 24) Administrative fee - ANSWER A fee deducted from the custodial fund for
administrative purposes.
25) Due to other funds - ANSWER Amounts owed by the custodial fund to other
funds.
26) Deductions - ANSWER Amounts deducted from the custodial fund, such as
administrative fees and payments of property taxes to other governments.
27) General fund - ANSWER A fund that holds cash, taxes receivable, and revenues
for general purposes.
28) Capital projects fund - ANSWER A fund that holds cash, taxes receivable, and
revenues for capital projects.
29) Debt service fund - ANSWER A fund that holds cash, taxes receivable, and
revenues for debt service.
30) Welfare fund - ANSWER A fund that holds cash, taxes receivable, and revenues
for welfare purposes.
31) Closing entry - ANSWER An entry made at the end of a period to transfer
balances from temporary accounts to permanent accounts.
32) Pass-through custodial funds - ANSWER Funds that receive grants, entitlements,
or shared revenues from a primary recipient and distribute them to a secondary
recipient.
33) Administrative involvement - ANSWER Involvement in monitoring compliance,
determining eligibility, or exercising discretion in allocation of funds.
34) Direct financial involvement - ANSWER Involvement in financing program costs
or being liable for disallowed costs.
