Test Bank for Government And Not For Profit
Accounting Concepts And Practices 9th Edition
What distinguishes government and not-for-profit entities from for-profit entities? - answers-
They have different purposes, lack a profit motive, and resource providers do not expect
proportional benefits.
What are the types of governments mentioned? - answers-General purpose governments (e.g.,
federal, state, cities) and special purpose governments (e.g., independent school systems,
public hospitals).
What is a characteristic of not-for-profit organizations? - answers-They are legally separate
organizations usually exempt from federal, state, and local taxation.
What is the primary duty of management in government and not-for-profit entities? - answers-
To be accountable for how resources are used in providing services.
What is the significance of accountability in financial reporting for government entities? -
answers-Accountability requires governments to justify the raising and use of public resources,
such as taxes.
What is interperiod equity in the context of government financial reporting? - answers-It is the
obligation to disclose whether current-year revenues were sufficient to pay for current-year
benefits.
What are the primary objectives of financial reporting for state and local governments? -
answers-To compare actual financial results with the legally adopted budget, assess financial
condition, and evaluate efficiency.
1
, What should federal government financial reporting assist users in evaluating? - answers-
Budgetary integrity, operating performance, stewardship, and adequacy of systems and
controls.
What are the objectives of financial reporting for not-for-profit organizations? - answers-To
provide information useful for resource allocation decisions, assessing services, and evaluating
management performance.
Which authoritative body sets standards for business organizations and nongovernmental not-
for-profits? - answers-FASB (Financial Accounting Standards Board).
Which authoritative body is responsible for state and local government organizations? -
answers-GASB (Governmental Accounting Standards Board).
Which body sets standards for the federal government and its agencies? - answers-FASAB
(Federal Accounting Standards Advisory Board).
What is a characteristic of government organizations regarding power? - answers-Power
ultimately rests in the hands of the people, who delegate it to public officials through elections.
What is the role of resource providers in government and not-for-profit entities? - answers-
They provide resources without expecting repayment or proportional benefits.
What is the minimum requirement for general purpose external financial reporting for state and
local governments? - answers-It relates to comprehensive annual financial reports.
What is the significance of financial reporting for not-for-profit organizations? - answers-It aids
2
Accounting Concepts And Practices 9th Edition
What distinguishes government and not-for-profit entities from for-profit entities? - answers-
They have different purposes, lack a profit motive, and resource providers do not expect
proportional benefits.
What are the types of governments mentioned? - answers-General purpose governments (e.g.,
federal, state, cities) and special purpose governments (e.g., independent school systems,
public hospitals).
What is a characteristic of not-for-profit organizations? - answers-They are legally separate
organizations usually exempt from federal, state, and local taxation.
What is the primary duty of management in government and not-for-profit entities? - answers-
To be accountable for how resources are used in providing services.
What is the significance of accountability in financial reporting for government entities? -
answers-Accountability requires governments to justify the raising and use of public resources,
such as taxes.
What is interperiod equity in the context of government financial reporting? - answers-It is the
obligation to disclose whether current-year revenues were sufficient to pay for current-year
benefits.
What are the primary objectives of financial reporting for state and local governments? -
answers-To compare actual financial results with the legally adopted budget, assess financial
condition, and evaluate efficiency.
1
, What should federal government financial reporting assist users in evaluating? - answers-
Budgetary integrity, operating performance, stewardship, and adequacy of systems and
controls.
What are the objectives of financial reporting for not-for-profit organizations? - answers-To
provide information useful for resource allocation decisions, assessing services, and evaluating
management performance.
Which authoritative body sets standards for business organizations and nongovernmental not-
for-profits? - answers-FASB (Financial Accounting Standards Board).
Which authoritative body is responsible for state and local government organizations? -
answers-GASB (Governmental Accounting Standards Board).
Which body sets standards for the federal government and its agencies? - answers-FASAB
(Federal Accounting Standards Advisory Board).
What is a characteristic of government organizations regarding power? - answers-Power
ultimately rests in the hands of the people, who delegate it to public officials through elections.
What is the role of resource providers in government and not-for-profit entities? - answers-
They provide resources without expecting repayment or proportional benefits.
What is the minimum requirement for general purpose external financial reporting for state and
local governments? - answers-It relates to comprehensive annual financial reports.
What is the significance of financial reporting for not-for-profit organizations? - answers-It aids
2
