1
,Accounting for Governmental & Nonprofit Entities, 18e Jacqueline Reck,Suzanne
ii ii ii ii ii ii ii i i
Lowensohn, Earl Wilson (Test Bank All Chapters, 100% Original Verified, A+
ii ii ii ii ii ii ii ii ii ii ii
Grade) ii
Accounting for Governmental and Nonprofit Entities, 18e (Reck) ii ii ii ii ii ii ii
Chapter 1 Introduction to Accounting and Financial Reporting for Government and
ii ii ii ii ii ii ii ii ii
Not-for-Profit Entities
ii ii
1) Special purpose governments generally provide a wider range of services to their residents than do
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
general purpose governments.
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Answer: FALSE i i
Difficulty: 1 Easy
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Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
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and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
2) Examples of general purpose governments include cities, towns, and public schools that receive tax
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revenue to finance the services they provide.
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Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
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and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
3) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
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accounting principles for all state and local governments, both general purpose and special
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purpose.
ii
Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
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reporting standards for (1) state and local governments, (2) the federal government, and (3)
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not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
2
,4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
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accounting principles for all government entities.
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Answer: FALSE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
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accounting principles for all colleges and universities and health care entities.
ii ii ii ii ii ii ii ii ii ii ii
Answer: FALSE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
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owners.
ii
Answer: TRUE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: FN Reporting
ii i i ii
3
, 7) A characteristic common to governments and not-for-profit organizations is that they do not
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exist to provide goods or services at a profit or profit equivalent.
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Answer: TRUE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
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and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
8) The needs of users of government financial reports are the same as those of users of business
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entity financial reports.
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Answer: FALSE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
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principles and standards for the federal government and its agencies and departments.
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Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
4
,Accounting for Governmental & Nonprofit Entities, 18e Jacqueline Reck,Suzanne
ii ii ii ii ii ii ii i i
Lowensohn, Earl Wilson (Test Bank All Chapters, 100% Original Verified, A+
ii ii ii ii ii ii ii ii ii ii ii
Grade) ii
Accounting for Governmental and Nonprofit Entities, 18e (Reck) ii ii ii ii ii ii ii
Chapter 1 Introduction to Accounting and Financial Reporting for Government and
ii ii ii ii ii ii ii ii ii
Not-for-Profit Entities
ii ii
1) Special purpose governments generally provide a wider range of services to their residents than do
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
general purpose governments.
ii ii ii
Answer: FALSE i i
Difficulty: 1 Easy
ii ii ii
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
2) Examples of general purpose governments include cities, towns, and public schools that receive tax
i i i i i i i i i i i i ii
revenue to finance the services they provide.
ii ii ii ii ii ii ii
Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
3) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
ii ii ii ii ii ii ii ii ii ii ii
accounting principles for all state and local governments, both general purpose and special
ii ii ii ii ii ii ii ii ii ii ii ii ii
purpose.
ii
Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
2
,4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish
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accounting principles for all government entities.
ii ii ii ii ii ii
Answer: FALSE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
5) The Financial Accounting Standards Board (FASB) is the body authorized to establish
ii ii ii ii ii ii ii ii ii ii ii
accounting principles for all colleges and universities and health care entities.
ii ii ii ii ii ii ii ii ii ii ii
Answer: FALSE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
6) Neither governments nor not-for-profit entities have residual equity that can be distributed to
ii ii ii ii ii ii ii ii ii ii ii ii
owners.
ii
Answer: TRUE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: FN Reporting
ii i i ii
3
, 7) A characteristic common to governments and not-for-profit organizations is that they do not
ii ii ii ii ii ii ii ii ii ii ii ii
exist to provide goods or services at a profit or profit equivalent.
ii ii ii ii ii ii ii ii ii ii ii
Answer: TRUE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
8) The needs of users of government financial reports are the same as those of users of business
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
entity financial reports.
ii ii ii
Answer: FALSE i i
Difficulty:2Medium
ii i i
Topic: Distinguishing Government and Not-For-Profit Organizations
i i i i ii ii ii ii
Learning Objective: 01-01 Identify and explain the characteristics that distinguish government
ii i i ii ii ii ii ii ii ii ii
and not-for-profit entities from for-profit entities.
ii ii ii ii ii ii
Bloom's: Understand i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting
ii ii ii ii ii ii ii ii
principles and standards for the federal government and its agencies and departments.
ii ii ii ii ii ii ii ii ii ii ii ii
Answer: TRUE i i
Difficulty: 1 Easy
ii ii ii
Topic: Sources of financial reporting standards
i i i i ii ii ii ii
Learning Objective: 01-02 Identify the authoritative bodies responsible for setting financial
ii i i ii ii ii ii ii ii ii ii
reporting standards for (1) state and local governments, (2) the federal government, and (3)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
not-for-profit organizations.
ii ii
Bloom's: Remember i i i i
AACSB: Knowledge Application i i i
AICPA: BB Industry
ii i i ii
4
