Governmental and Not-for-Profit Accounting Chapter 1 – Study Guide and Practice Questions 2026 Page 1 Governmental and Not-for-Profit Accounting Chapter 1 – Study Guide and Practice Questions 2026.pdf
Governmental and
Not-for-Profit Accounting
Chapter 1 – Study Guide and
Practice Questions 2026
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 12
Page 1 of 12 2026-03-17
, Governmental and not for profit accounting ch 1 Page 2 Governmental and not for profit accounting ch 1.pdf
. A primary characteristic that distinguishes governments from businesses is
a) The need to generate revenues equal to or in excess of expenditures/expenses.
b) The importance of the budget in the governing process.
c) The need to provide goods or services.
d) The correlation between revenues generated and demand for goods or services.
b) The importance of the budget in the governing process.
. Which of the following characteristics distinguishes a government or not-for-profit entity from a business?
a) There is always a direct link between revenues generated and expenditures/expenses incurred.
b) Capital assets are used to produce revenues and save costs.
c) Revenues are always indicative of demand for goods and services.
d) The mission of the entity will determine the goods or services provided.
d) The mission of the entity will determine the goods or services provided.
In which of the following activities is a not-for-profit entity least likely to engage?
a) Providing educational services.
b) Providing health-care services.
c) Providing defense against terrorism.
d) Fund-raising sales of cookies.
c) Providing defense against terrorism.
Page 2 of 12 2 of 12 2026-03-17
Governmental and
Not-for-Profit Accounting
Chapter 1 – Study Guide and
Practice Questions 2026
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 12
Page 1 of 12 2026-03-17
, Governmental and not for profit accounting ch 1 Page 2 Governmental and not for profit accounting ch 1.pdf
. A primary characteristic that distinguishes governments from businesses is
a) The need to generate revenues equal to or in excess of expenditures/expenses.
b) The importance of the budget in the governing process.
c) The need to provide goods or services.
d) The correlation between revenues generated and demand for goods or services.
b) The importance of the budget in the governing process.
. Which of the following characteristics distinguishes a government or not-for-profit entity from a business?
a) There is always a direct link between revenues generated and expenditures/expenses incurred.
b) Capital assets are used to produce revenues and save costs.
c) Revenues are always indicative of demand for goods and services.
d) The mission of the entity will determine the goods or services provided.
d) The mission of the entity will determine the goods or services provided.
In which of the following activities is a not-for-profit entity least likely to engage?
a) Providing educational services.
b) Providing health-care services.
c) Providing defense against terrorism.
d) Fund-raising sales of cookies.
c) Providing defense against terrorism.
Page 2 of 12 2 of 12 2026-03-17
