2025 NFP EXAM UPDATED EXAM WITH MOST TESTED QUESTIONS AND ANSWERS | GRADED A+ | ASSURED SUCCESS WITH DETAILED RATIONALES

ESTUDY



NFP EXAM UPDATED EXAM WITH MOST TESTED
QUESTIONS AND ANSWERS | GRADED A+ | ASSURED
SUCCESS WITH DETAILED RATIONALES

**1. On which of the following statements would "Other Financing Sources/Uses" appear?**



A) Statement of Revenues, Expenditures, and Changes in Fund Balances

B) Statement of Net Position

C) Statement of Activities

D) Statement of Cash Flows



**Answer**: A) Statement of Revenues, Expenditures, and Changes in Fund Balances



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**2. Do government managers rely on general purpose financial statements for important information
about their government?**



A) True

B) False



**Answer**: A) True



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**3. Does the Governmental Accounting Standards Board (GASB) set the accounting rules for all state
and local governments, as well as not-for-profit organizations?**



A) True

B) False



**Answer**: B) False



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**4. Does the Financial Accounting Standards Board (FASB) require all not-for-profit entities to use fund
accounting?**



A) True

B) False



**Answer**: B) False



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**5. Does fund accounting help governments keep track of restricted resources?**



A) True

B) False



**Answer**: A) True

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**6. Do encumbrances and expenditures both decrease the total fund balances of state and local
governments?**



A) True

B) False



**Answer**: B) False



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**7. Do state and local government budget-to-actual comparisons show both the original and final
budget amounts?**



A) True

B) False



**Answer**: A) True



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**8. Under modified accrual accounting for property taxes, when should revenue be recognized?**



A) Only when cash is expected to be collected within sixty days after year-end