Test Bank for Essentials of Accounting for Governmental and Not-for-Profit Organizations 15th Edition By Paul Copley - Complete All Chapters (Latest Edition)

Test Bank for Essentials of Accounting for Governmental and Not-for-Profit Organizations 15th Edition By Paul Copley - Complete All Chapters (Latest Verified) 1) The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal, state, and local. true false 2) Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions. true false 3) The Financial Accounting Standards Board sets financial reporting standards for profitseeking businesses and nongovernmental, not-for-profit organizations. true false 4) FASAB, GASB, and FASB standards are set forth primarily in documents called statements. true false 5) FASAB, GASB, and FASB reporting standards are set forth primarily in documents called concept statements. true false 6) The FASAB was established to recommend accounting and financial reporting standards for the federal government. true false 2 7) The GASB does not require supplementary information to be reported with its financial statements even if it is essential to establish appropriate context for the financial statements and notes. true false 8) The Financial Accounting Standards Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation. true false 9) The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB. true false 10) The FASAB requires more financial statements than are typically required of state and local governments. true false 11) Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund. true false 12) A Management's Discussion and Analysis is required for state and local governmental units, and the federal government. true false 13) Although certain supplementary information may not be required, if presented, it must follow GASB guidance regarding its format and content. true false 14) The format and content of supplementary information which is not required by GASB is up to the discretion of the reporting entity. true 3 false 15) GASB and FASB Concept Statements establish accounting standards that must be complied with to receive an unqualified audit opinion. true false 16) FASAB, GASB, and FASB standards are set forth primarily in documents called interpretations. true false 17) The Financial Accounting Standards Board sets financial reporting standards for private notfor-profits and investor-owned businesses. true false 18) An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes. true false 19) Fund-basis statements are presented for three categories of government activities: governmental, proprietary, and fiduciary. true false 20) State and local governments may use as many as twelve different fund types. true false 21) The economic resource measurement focus and accrual basis is an important feature of government-wide financial statements. true false 22) Businesslike activity fund-basis statements must be changed to the accrual basis from the modified accrual basis when preparing government-wide financial statements. 4 true false 23) Governmental-type activity fund-basis statements must use accrual basis when preparing government-wide financial statements. true false 24) Fiduciary funds of a governmental unit use the current financial resources measurement focus and modified accrual basis of accounting. true false 25) General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements. true false 26) Comparison of the legally approved budget with actual results of the General Fund is not part of required supplementary information in the ACFR. true false 27) Comparison of the legally approved budget with actual results of the General Fund is included as part of required supplementary information in the ACFR. true false 28) Long-term debt associated with governmental activities (i.e. that is to be paid with tax revenues) is reported in the government-wide statements but not in the governmental fund statements true false 29) Measurement focus refers to those items, such as current and long-term assets, that are being reported on the financial statements. 5 true false 30) Infrastructure is capitalized in the fund-basis statements of state and local governmental units. true false 31) Fiduciary funds include custodial, pension trust, investment trust, and permanent funds. true false 32) The Financial Accounting Standards Board has authority to establish accounting and financial reporting standards for both private and state universities. true false 33) FASB sets the reporting standards for private not-for-for profits. true false 34) Under the accrual basis of accounting, revenues are recognized when measurable and available to finance expenditures of the current period. true false 35) The government-wide statements and the fund statements for proprietary funds and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting. true false 36) Internal Service funds are treated as governmental activities in the government-wide statements if the principal customers are other departments within the General Fund. true false 37) Permanent funds can be either a governmental fund or a fiduciary fund where only income on donated assets may be spent.