Student3name:
1) Explain3the3essential3differences3between3general3purpose3and3special3purpos
e3governments3and3give3several3examples3of3each.
2) Identify3and3explain3the3characteristics3that3distinguish3governments3and3not-for-
profit3entities3from3business3entities.
3) GASB3and3FASB3standards3are3concerned3only3with3external3financial3reporting;3where
as,3FASAB 3standards3are3concerned3with3both3internal3and3external3financial3reporting.3Do3you3
agree3with3this3statement?3Why3or3why3not?
4) Why3should3persons3interested3in3reading3financial3reports3of3governments3and3not-
for-3profit3entities3be3familiar3with3standards3set3by3the3GASB3and3the3FASB?
Version31 1
,5) Explain3in3your3own3words3why3accountability3is3the3cornerstone3of3all3financi
al3reporting3in3government.
6) In3your3own3words3state3the3primary3needs3the3GASB3believes3external3users3have3fo
r3financial3reports3of3state3and3local3governments.3For3contrast,3state3the3uses3the3FASB3belie
ves3external3users3have3for3the3financial3reports3of3not-for-profit3organizations.
7) Describe3the3difference3between3a3comprehensive3annual3financial3report3(CAFR)3an
d3GASB3general3purpose3external3financial3reporting3for3state3and3local3governments.
8) Identify3and3briefly3explain3the3four3sections3of3the3performance3and3accountability3repo
rt3(PAR)3that3the3Office3of3Management3and3Budget3requires3major3federal3departments3and3ag
encies3to3prepare.
Version31 2
,9) Explain3the3concepts3of3fiscal3and3operational3accountability3and3the3basis3of3accountin
g3used3to3capture3each3concept.
10) Describe3the3comprehensive3annual3financial3report3(CAFR).3What3are3the3sections3of3th
e3report3and3which3components3of3the3organization3should3it3include?3Is3a3CAFR3required?
11) The3Governmental3Accounting3Standards3Board3is3assigned3responsibility3for3settin
g3accounting3and3financial3reporting3standards3for3which3of3the3following?
A) Governments3such3as3federal3agencies,3states,3cities,3counties,3villages,3an
d3townships.
B) State3and3local3government3entities3and3governmentally-
related3units3and3agencies,3such3as3utilities,3authorities,3hospitals,3and3colleges3and3universitie
s.
C) Not-for-profit3organizations.
D) State3and3local3governments3and3all3not-for-profit3organizations.
Version31 3
, 12) Which3of3the3following3bodies3has3been3established3to3recommend3accounting3an
d3financial3reporting3standards3for3the3federal3government?
A) Financial3Accounting3Standards3Board3(FASB).
B) Governmental3Accounting3Standards3Board3(GASB).
C) Federal3Accounting3Foundation3(FAF).
D) Federal3Accounting3Standards3Advisory3Board3(FASAB).
13) The3Financial3Accounting3Standards3Board3has3the3responsibility3for3setting3accountin
g3and3financial3reporting3standards3for3which3of3the3following?
A) All3not-for-profit3organizations3that3are3nongovernmental3and3business3entities.
B) All3not-for-profit3organizations3and3business3entities.
C) All3not-for-profit3organizations.
D) Special3purpose3governments3with3a3business3purpose.
14) You3are3trying3to3decide3if3an3entity3you3are3reviewing3is3a3government3or3a3not-
for-3profit.3Which3of3the3following3would3indicate3it3is3a3government3rather3than3a3not-for-
profit3entity?
A) Absence3of3profit3motive.
B) A3primary3source3of3revenues3is3taxes.
C) Resource3providers3do3not3expect3benefits3proportional3to3the3resources3provided.
D) Absence3of3a3defined3ownership3interest3that3can3be3sold,3transferred,3or3redeemed.
15) Which3of3the3following3is3identified3by3the3GASB3as3the3"cornerstone"3of3all3financi
al3reporting3in3government?
A) Decision3usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod3equity.
Version31 4
1) Explain3the3essential3differences3between3general3purpose3and3special3purpos
e3governments3and3give3several3examples3of3each.
2) Identify3and3explain3the3characteristics3that3distinguish3governments3and3not-for-
profit3entities3from3business3entities.
3) GASB3and3FASB3standards3are3concerned3only3with3external3financial3reporting;3where
as,3FASAB 3standards3are3concerned3with3both3internal3and3external3financial3reporting.3Do3you3
agree3with3this3statement?3Why3or3why3not?
4) Why3should3persons3interested3in3reading3financial3reports3of3governments3and3not-
for-3profit3entities3be3familiar3with3standards3set3by3the3GASB3and3the3FASB?
Version31 1
,5) Explain3in3your3own3words3why3accountability3is3the3cornerstone3of3all3financi
al3reporting3in3government.
6) In3your3own3words3state3the3primary3needs3the3GASB3believes3external3users3have3fo
r3financial3reports3of3state3and3local3governments.3For3contrast,3state3the3uses3the3FASB3belie
ves3external3users3have3for3the3financial3reports3of3not-for-profit3organizations.
7) Describe3the3difference3between3a3comprehensive3annual3financial3report3(CAFR)3an
d3GASB3general3purpose3external3financial3reporting3for3state3and3local3governments.
8) Identify3and3briefly3explain3the3four3sections3of3the3performance3and3accountability3repo
rt3(PAR)3that3the3Office3of3Management3and3Budget3requires3major3federal3departments3and3ag
encies3to3prepare.
Version31 2
,9) Explain3the3concepts3of3fiscal3and3operational3accountability3and3the3basis3of3accountin
g3used3to3capture3each3concept.
10) Describe3the3comprehensive3annual3financial3report3(CAFR).3What3are3the3sections3of3th
e3report3and3which3components3of3the3organization3should3it3include?3Is3a3CAFR3required?
11) The3Governmental3Accounting3Standards3Board3is3assigned3responsibility3for3settin
g3accounting3and3financial3reporting3standards3for3which3of3the3following?
A) Governments3such3as3federal3agencies,3states,3cities,3counties,3villages,3an
d3townships.
B) State3and3local3government3entities3and3governmentally-
related3units3and3agencies,3such3as3utilities,3authorities,3hospitals,3and3colleges3and3universitie
s.
C) Not-for-profit3organizations.
D) State3and3local3governments3and3all3not-for-profit3organizations.
Version31 3
, 12) Which3of3the3following3bodies3has3been3established3to3recommend3accounting3an
d3financial3reporting3standards3for3the3federal3government?
A) Financial3Accounting3Standards3Board3(FASB).
B) Governmental3Accounting3Standards3Board3(GASB).
C) Federal3Accounting3Foundation3(FAF).
D) Federal3Accounting3Standards3Advisory3Board3(FASAB).
13) The3Financial3Accounting3Standards3Board3has3the3responsibility3for3setting3accountin
g3and3financial3reporting3standards3for3which3of3the3following?
A) All3not-for-profit3organizations3that3are3nongovernmental3and3business3entities.
B) All3not-for-profit3organizations3and3business3entities.
C) All3not-for-profit3organizations.
D) Special3purpose3governments3with3a3business3purpose.
14) You3are3trying3to3decide3if3an3entity3you3are3reviewing3is3a3government3or3a3not-
for-3profit.3Which3of3the3following3would3indicate3it3is3a3government3rather3than3a3not-for-
profit3entity?
A) Absence3of3profit3motive.
B) A3primary3source3of3revenues3is3taxes.
C) Resource3providers3do3not3expect3benefits3proportional3to3the3resources3provided.
D) Absence3of3a3defined3ownership3interest3that3can3be3sold,3transferred,3or3redeemed.
15) Which3of3the3following3is3identified3by3the3GASB3as3the3"cornerstone"3of3all3financi
al3reporting3in3government?
A) Decision3usefulness.
B) Stewardship.
C) Accountability.
D) Interperiod3equity.
Version31 4
