Government & Non-profit Accounting
Exam 1 (chapters 1-4) well answered
Government & NFP orgs are vast in - correct answer ✔✔number and range of
services provided
Governments exist at the - correct answer ✔✔Federal, State, and Local Levels
Two types of government - correct answer ✔✔General Purpose and Special
Purpose
General Purpose Government - correct answer ✔✔governments that provide a
wide range of services to to their residents (such as PD and FD, sanitation,
construction, and maintenance of streets, and culture and recreation
Special Purpose Government - correct answer ✔✔Governments that only provide
a single function (or a limited number) (such as, public schools, colleges &
universities, flood control, irrigation, water conservation)
**have the power to levy and collect taxes to raise revenues from other sources
provided by the state laws to finance the services they provide.
Distinguishing characteristic of government and NFPs - correct answer ✔✔1.
Different purpose in society than business organizations (exist to meet needs)
2. Lack of profit motive
,3. Financed by resource providers (e.g. tax payers/donors) who do not expect
benefits proportional to the resources they provide
4. Absence of defined ownership interest
How do government bodies differ from NFPs - correct answer ✔✔Government
entities in the US differ from both NFPs and business entities by stressing
governments exist in an environment in which the power ultimately rests in the
hands of the people.
Authoritative bodies - correct answer ✔✔1. Financial Accounting Foundation -->
FASB --> Business (for profit) orgs & non-governmental, NFP orgs.
2. Financial Accounting Foundation --> GASB --> State & local government orgs. &
Governmental NFP orgs.
3. Comptroller General, Director of Office & Mgmt, Secretary of Treasury -->
Federal Accounting Standards Advisory Board (FASAB)--> Federal government & its
agencies & departments.
Objectives of Financial Reporting for Government and NFPs - correct answer
✔✔1. Accountability - Cornerstone to financial reporting
2. Stewardship - citizens right-to-know how public resources are raised & used to
provide services
3. Other - 1. Conformity w/ GAAP. 2. Determine/demonstrate compliance w/
finance-related legal & contractual provisions (useful reporting for making
economic, social, & political decisions & assessing accountability.
Government-Wide Financial Statements - correct answer ✔✔1. Statement of Net
Position (assets, similar to Balance Sheet).
, 2. Statement of activities (similar to Income Statement)
Three different types of funds - correct answer ✔✔1. Government Fund
2. Proprietary Fund
3. Fiduciary Fund
Government Fund - 5 types - correct answer ✔✔1. General
2. Special Revenue
3. Debt Services
4. Capital Project
5. Permanent
* Statement of New Position (B/S), reconciliation
* Statement of revenue, expenditure, change in fund balance
Proprietary Fund - 2 types - correct answer ✔✔1. Internal Services
2. Enterprise
* Statement of Net Position (B/S)
* Statement of Revenue, Expenses, & Change in Fund Balance
* Statement of Cash Flows
Fiduciary Fund - 4 types - correct answer ✔✔1. Agency
2. Investment trust
3. Private Purpose
Exam 1 (chapters 1-4) well answered
Government & NFP orgs are vast in - correct answer ✔✔number and range of
services provided
Governments exist at the - correct answer ✔✔Federal, State, and Local Levels
Two types of government - correct answer ✔✔General Purpose and Special
Purpose
General Purpose Government - correct answer ✔✔governments that provide a
wide range of services to to their residents (such as PD and FD, sanitation,
construction, and maintenance of streets, and culture and recreation
Special Purpose Government - correct answer ✔✔Governments that only provide
a single function (or a limited number) (such as, public schools, colleges &
universities, flood control, irrigation, water conservation)
**have the power to levy and collect taxes to raise revenues from other sources
provided by the state laws to finance the services they provide.
Distinguishing characteristic of government and NFPs - correct answer ✔✔1.
Different purpose in society than business organizations (exist to meet needs)
2. Lack of profit motive
,3. Financed by resource providers (e.g. tax payers/donors) who do not expect
benefits proportional to the resources they provide
4. Absence of defined ownership interest
How do government bodies differ from NFPs - correct answer ✔✔Government
entities in the US differ from both NFPs and business entities by stressing
governments exist in an environment in which the power ultimately rests in the
hands of the people.
Authoritative bodies - correct answer ✔✔1. Financial Accounting Foundation -->
FASB --> Business (for profit) orgs & non-governmental, NFP orgs.
2. Financial Accounting Foundation --> GASB --> State & local government orgs. &
Governmental NFP orgs.
3. Comptroller General, Director of Office & Mgmt, Secretary of Treasury -->
Federal Accounting Standards Advisory Board (FASAB)--> Federal government & its
agencies & departments.
Objectives of Financial Reporting for Government and NFPs - correct answer
✔✔1. Accountability - Cornerstone to financial reporting
2. Stewardship - citizens right-to-know how public resources are raised & used to
provide services
3. Other - 1. Conformity w/ GAAP. 2. Determine/demonstrate compliance w/
finance-related legal & contractual provisions (useful reporting for making
economic, social, & political decisions & assessing accountability.
Government-Wide Financial Statements - correct answer ✔✔1. Statement of Net
Position (assets, similar to Balance Sheet).
, 2. Statement of activities (similar to Income Statement)
Three different types of funds - correct answer ✔✔1. Government Fund
2. Proprietary Fund
3. Fiduciary Fund
Government Fund - 5 types - correct answer ✔✔1. General
2. Special Revenue
3. Debt Services
4. Capital Project
5. Permanent
* Statement of New Position (B/S), reconciliation
* Statement of revenue, expenditure, change in fund balance
Proprietary Fund - 2 types - correct answer ✔✔1. Internal Services
2. Enterprise
* Statement of Net Position (B/S)
* Statement of Revenue, Expenses, & Change in Fund Balance
* Statement of Cash Flows
Fiduciary Fund - 4 types - correct answer ✔✔1. Agency
2. Investment trust
3. Private Purpose
