Government & Not-for-Profit Accounting Exam -1 questions with answers

Government & Not-for-Profit Accounting |\ |\ |\ |\




Exam #1 questions with answers |\ |\ |\ |\




How do Government & Not-for-Profit practices differ from
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business practices? - CORRECT ANSWERS ✔✔- Different purposes
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in society
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- Management has special duty to be accountable for how
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resources are used in providing services |\ |\ |\ |\ |\




- Financed by providers who do not expect benefits proportional
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to the resources they provide.
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What are the two type of governments and what services do they
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provide? - CORRECT ANSWERS ✔✔1) General Purpose
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|\ - Federal, state, and local governments
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2) Special purpose
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|\ - School systems, public colleges, universities,
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|\ hospitals, fire protection districts, etc. |\ |\ |\ |\




Characteristics of Government and Not-for-Profit Organizations - |\ |\ |\ |\ |\ |\ |\


CORRECT ANSWERS ✔✔- Organization lacks profit motive|\ |\ |\ |\ |\ |\




- Absence of Transferable Ownership Rights
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Characteristics of Government - CORRECT ANSWERS ✔✔- Power |\ |\ |\ |\ |\ |\ |\ |\


rests in the hands of the people
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, - People delegate power to public officials through elections
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- Empowered by and accountable to a higher level government
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- Power to tax
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FASAB - CORRECT ANSWERS ✔✔Financial Accounting Standards
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Accounting Board |\




|\ - Federal Government and its agencies and departments
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GASB - CORRECT ANSWERS ✔✔Governmental Accounting
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Standards Board |\




|\ - State and local governments and governmental not-for-profits
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FASB - CORRECT ANSWERS ✔✔Financial Accounting Standards
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Board
|\ - Business organizations and non-governmental not-for profits
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Accountability - CORRECT ANSWERS ✔✔The requirement of |\ |\ |\ |\ |\ |\ |\


governments to answer to citizens to justify the raising of public |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


resources and the purposes for which they are used. |\ |\ |\ |\ |\ |\ |\ |\




Inter-period Equity - CORRECT ANSWERS ✔✔A government's |\ |\ |\ |\ |\ |\ |\


obligation to disclose whether current-year revenues were
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sufficient to pay for current-year benefits or will future taxpayers
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be required to pay for them instead?
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