Test Bank for Essentials of Accounting for Governmental and Not-for-Profit Organizations, 15th Edition by Copley

MEDEXCELLENCE



Chap 01 15e Copley
1) The Governmental Accounting Standards Board sets financial reporting standards for all
units of government: federal, state, and local. ALL CHAPTERS
⊚ true ANSWERS INCLUDED
⊚ false



2) Fund accounting exists primarily to provide assurance that resources are used according to
legal or donor restrictions.
⊚ true




E
⊚ false




C
3) The Financial Accounting Standards Board sets financial reporting standards for profit-




N
seeking businesses and nongovernmental, not-for-profit organizations.
⊚ true



LE
⊚ false
EL
4) FASAB, GASB, and FASB standards are set forth primarily in documents called statements.
⊚ true
⊚ false
C
EX


5) FASAB, GASB, and FASB reporting standards are set forth primarily in documents called
concept statements.
⊚ true
⊚ false
ED




6) The FASAB was established to recommend accounting and financial reporting standards for
the federal government.
M




⊚ true
⊚ false




1

, MEDEXCELLENCE

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 sets financial reporting standards for private not-
for-profits and investor-owned businesses.
⊚ true
⊚ false




E
C
9) An organization is presumed to be governmental if it has the ability to issue directly debt that
is exempt from federal taxes.




N
⊚ true
⊚ false




LE
10) The Financial Accounting Standards Board and the Governmental Accounting Standards
Board are parallel bodies under the oversight of the Financial Accounting Foundation.
EL
⊚ true
⊚ false
C

11) The Federal Accounting Standards Advisory Board requires less extensive reports than does
EX


the FASB or GASB.
⊚ true
⊚ false
ED




12) The FASAB requires more financial statements than are typically required of state and local
governments.
M




⊚ true
⊚ false




2

, MEDEXCELLENCE

13) 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



14) A Management's Discussion and Analysis is required for state and local governmental units,
and the federal government.
⊚ true
⊚ false




E
15) Although certain supplementary information may not be required, if presented, it must




C
follow GASB guidance regarding its format and content.
⊚ true




N
⊚ false




to the discretion of the reporting entity.
⊚ true LE
16) The format and content of supplementary information which is not required by GASB is up
EL
⊚ false
C

17) GASB and FASB Concept Statements establish accounting standards that must be complied
with to receive an unqualified audit opinion.
EX


⊚ true
⊚ false
ED




18) FASAB, GASB, and FASB standards are set forth primarily in documents called
interpretations.
⊚ true
M




⊚ false




3

, MEDEXCELLENCE

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




E
government-wide financial statements.




C
⊚ true
⊚ false




N
LE
22) Businesslike activity fund-basis statements must be changed to the accrual basis from the
modified accrual basis when preparing government-wide financial statements.
⊚ true
⊚ false
EL
23) Governmental-type activity fund-basis statements must use accrual basis when preparing
C

government-wide financial statements.
⊚ true
EX


⊚ false
ED




24) Fiduciary funds of a governmental unit use the current financial resources measurement
focus and modified accrual basis of accounting.
⊚ true
⊚ false
M




25) Under the accrual basis of accounting, revenues are recognized when measurable and
available to finance expenditures of the current period.
⊚ true
⊚ false




4