TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL & NONPROFIT ENTITIES 18TH EDITION JACQUELINE RECK, SUZANNE LOWENSOHN, DANIEL NEELY DUE MID NOVEMBER(CORRECTLY ANSWERED

TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL & NONPROFIT ENTITIES 18TH EDITION JACQUELINE RECK, SUZANNE LOWENSOHN, DANIEL NEELY DUE MID NOV(CORRECTLY ANSWERED) 1 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 1 Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities 1) Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. 2) Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. 3) The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. 4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all government entities. 5) The Financial Accounting Standards Board (FASB) is the body authorized to establish accounting principles for all colleges and universities and health care entities. 6) Neither governments nor not-for-profit entities have residual equity that can be distributed to owners. 7) A characteristic common to governments and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent. 8) The needs of users of government financial reports are the same as those of users of business entity financial reports. 9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and standards for the federal government and its agencies and departments. 10) The FASB, GASB, and FASAB all focus their standards on both internal and external financial reporting. 11) Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will not be required to assume the burden for services previously provided. 12) The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2) the basic financial statements, including the notes to the financial statements, and (3) combining and individual fund financial statements. 13) The Financial Accounting Foundation has oversight over both the FASB and the GASB. 14) In addition to financial statements and notes, the GASB requires governments to provide information on service efforts and accomplishments (SEA) in their reports to the public. 2