, 1
Student name:__________
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 and external financial reporting. Do
you agree with this statement? Why or why not?
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?
1
, 2
5) Explain in your own words why accountability is the cornerstone of all financial
reporting in 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.
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.
2
, 3
9) Explain the concepts of fiscal and operational accountability and the basis of accounting
used to capture each concept.
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?
11) The Governmental Accounting Standards Board is assigned responsibility for setting
accounting and financial reporting standards for which of the following?
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.
3
Student name:__________
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 and external financial reporting. Do
you agree with this statement? Why or why not?
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?
1
, 2
5) Explain in your own words why accountability is the cornerstone of all financial
reporting in 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.
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.
2
, 3
9) Explain the concepts of fiscal and operational accountability and the basis of accounting
used to capture each concept.
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?
11) The Governmental Accounting Standards Board is assigned responsibility for setting
accounting and financial reporting standards for which of the following?
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.
3
