Test Bank for Accounting for
fr fr fr fr
Governmental & Nonprofit Entities fr fr fr fr
19th Edition by Jacqueline L. Reck, S
fr fr fr fr fr fr
uzanne Lowensohn & Daniel Neely
fr fr fr fr
Complete Chapters With Verified Q&As| A+ PASS
fr fr fr fr fr fr fr
Answers at the Back of Each Chapter
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1fr|frPfrafrgfre
, Chapterfr1
1) Explainfrthefressentialfrdifferencesfrbetweenfrgeneralfrpurposefrandfrspecialfrpurposefrgovernmentsfrandfrgiv
efrseveralfrexamplesfroffreach.
2) Identifyfrandfrexplainfrthefrcharacteristicsfrthatfrdistinguishfrgovernmentsfrandfrnot-for-
profitfrentitiesfrfromfrbusinessfrentities.
3) GASBfrandfrFASBfrstandardsfrarefrconcernedfronlyfrwithfrexternalfrfinancialfrreporting;frwhereas,frFASA
Bfrstandardsfrarefrconcernedfrwithfrbothfrinternalfrandfrexternalfrfinancialfrreporting.frDofryoufragreefrwithfrthi
sfrstatement?frWhyfrorfrwhyfrnot?
4) Whyfrshouldfrpersonsfrinterestedfrinfrreadingfrfinancialfrreportsfroffrgovernmentsfrandfrnot-for-
frprofitfrentitiesfrbefrfamiliarfrwithfrstandardsfrsetfrbyfrthefrGASBfrandfrthefrFASB?
5) Explainfrinfryourfrownfrwordsfrwhyfraccountabilityfrisfrthefrcornerstonefroffrallfrfinancialfrreportingfri
nfrgovernment.
2fr|frPfrafrgfre
,6) InfryourfrownfrwordsfrstatefrthefrprimaryfrneedsfrthefrGASBfrbelievesfrexternalfrusersfrhavefrforfrfinancialfrrepor
tsfroffrstatefrandfrlocalfrgovernments.frForfrcontrast,frstatefrthefrusesfrthefrFASBfrbelievesfrexternalfrusersfrhavefrfor
frthefrfinancialfrreportsfroffrnot-for-profitfrorganizations.
7) Describefrthefrdifferencefrbetweenfrafrcomprehensivefrannualfrfinancialfrreportfr(CAFR)frandfrGASBfrgenera
lfrpurposefrexternalfrfinancialfrreportingfrforfrstatefrandfrlocalfrgovernments.
8) Identifyfrandfrbrieflyfrexplainfrthefrfourfrsectionsfroffrthefrperformancefrandfraccountabilityfrreportfr(PAR)frth
atfrthefrOfficefroffrManagementfrandfrBudgetfrrequiresfrmajorfrfederalfrdepartmentsfrandfragenciesfrtofrprepare.
9) Explainfrthefrconceptsfroffrfiscalfrandfroperationalfraccountabilityfrandfrthefrbasisfroffraccountingfrusedfrt
ofrcapturefreachfrconcept.
10) Describefrthefrcomprehensivefrannualfrfinancialfrreportfr(CAFR).frWhatfrarefrthefrsectionsfroffrthefrreportfran
dfrwhichfrcomponentsfroffrthefrorganizationfrshouldfritfrinclude?frIsfrafrCAFRfrrequired?
3fr|frPfrafrgfre
, 11) ThefrGovernmentalfrAccountingfrStandardsfrBoardfrisfrassignedfrresponsibilityfrforfrsettingfraccountingfran
dfrfinancialfrreportingfrstandardsfrforfrwhichfroffrthefrfollowing?
A) Governmentsfrsuchfrasfrfederalfragencies,frstates,frcities,frcounties,frvillages,frandfrtownships.
B) Statefrandfrlocalfrgovernmentfrentitiesfrandfrgovernmentally-
relatedfrunitsfrandfragencies,frsuchfrasfrutilities,frauthorities,frhospitals,frandfrcollegesfrandfruniversities.
C) Not-for-profitfrorganizations.
D) Statefrandfrlocalfrgovernmentsfrandfrallfrnot-for-profitfrorganizations.
12) Whichfroffrthefrfollowingfrbodiesfrhasfrbeenfrestablishedfrtofrrecommendfraccountingfrandfrfinancialfrreportin
gfrstandardsfrforfrthefrfederalfrgovernment?
A) FinancialfrAccountingfrStandardsfrBoardfr(FASB).
B) GovernmentalfrAccountingfrStandardsfrBoardfr(GASB).
C) FederalfrAccountingfrFoundationfr(FAF).
D) FederalfrAccountingfrStandardsfrAdvisoryfrBoardfr(FASAB).
13) ThefrFinancialfrAccountingfrStandardsfrBoardfrhasfrthefrresponsibilityfrforfrsettingfraccountingfrandfrfinancia
lfrreportingfrstandardsfrforfrwhichfroffrthefrfollowing?
A) Allfrnot-for-profitfrorganizationsfrthatfrarefrnongovernmentalfrandfrbusinessfrentities.
B) Allfrnot-for-profitfrorganizationsfrandfrbusinessfrentities.
C) Allfrnot-for-profitfrorganizations.
D) Specialfrpurposefrgovernmentsfrwithfrafrbusinessfrpurpose.
14) Youfrarefrtryingfrtofrdecidefriffranfrentityfryoufrarefrreviewingfrisfrafrgovernmentfrorfrafrnot-for-
frprofit.frWhichfroffrthefrfollowingfrwouldfrindicatefritfrisfrafrgovernmentfrratherfrthanfrafrnot-for-profitfrentity?
A) Absencefroffrprofitfrmotive.
B) Afrprimaryfrsourcefroffrrevenuesfrisfrtaxes.
4fr|frPfrafrgfre
fr fr fr fr
Governmental & Nonprofit Entities fr fr fr fr
19th Edition by Jacqueline L. Reck, S
fr fr fr fr fr fr
uzanne Lowensohn & Daniel Neely
fr fr fr fr
Complete Chapters With Verified Q&As| A+ PASS
fr fr fr fr fr fr fr
Answers at the Back of Each Chapter
fr fr fr fr fr fr
1fr|frPfrafrgfre
, Chapterfr1
1) Explainfrthefressentialfrdifferencesfrbetweenfrgeneralfrpurposefrandfrspecialfrpurposefrgovernmentsfrandfrgiv
efrseveralfrexamplesfroffreach.
2) Identifyfrandfrexplainfrthefrcharacteristicsfrthatfrdistinguishfrgovernmentsfrandfrnot-for-
profitfrentitiesfrfromfrbusinessfrentities.
3) GASBfrandfrFASBfrstandardsfrarefrconcernedfronlyfrwithfrexternalfrfinancialfrreporting;frwhereas,frFASA
Bfrstandardsfrarefrconcernedfrwithfrbothfrinternalfrandfrexternalfrfinancialfrreporting.frDofryoufragreefrwithfrthi
sfrstatement?frWhyfrorfrwhyfrnot?
4) Whyfrshouldfrpersonsfrinterestedfrinfrreadingfrfinancialfrreportsfroffrgovernmentsfrandfrnot-for-
frprofitfrentitiesfrbefrfamiliarfrwithfrstandardsfrsetfrbyfrthefrGASBfrandfrthefrFASB?
5) Explainfrinfryourfrownfrwordsfrwhyfraccountabilityfrisfrthefrcornerstonefroffrallfrfinancialfrreportingfri
nfrgovernment.
2fr|frPfrafrgfre
,6) InfryourfrownfrwordsfrstatefrthefrprimaryfrneedsfrthefrGASBfrbelievesfrexternalfrusersfrhavefrforfrfinancialfrrepor
tsfroffrstatefrandfrlocalfrgovernments.frForfrcontrast,frstatefrthefrusesfrthefrFASBfrbelievesfrexternalfrusersfrhavefrfor
frthefrfinancialfrreportsfroffrnot-for-profitfrorganizations.
7) Describefrthefrdifferencefrbetweenfrafrcomprehensivefrannualfrfinancialfrreportfr(CAFR)frandfrGASBfrgenera
lfrpurposefrexternalfrfinancialfrreportingfrforfrstatefrandfrlocalfrgovernments.
8) Identifyfrandfrbrieflyfrexplainfrthefrfourfrsectionsfroffrthefrperformancefrandfraccountabilityfrreportfr(PAR)frth
atfrthefrOfficefroffrManagementfrandfrBudgetfrrequiresfrmajorfrfederalfrdepartmentsfrandfragenciesfrtofrprepare.
9) Explainfrthefrconceptsfroffrfiscalfrandfroperationalfraccountabilityfrandfrthefrbasisfroffraccountingfrusedfrt
ofrcapturefreachfrconcept.
10) Describefrthefrcomprehensivefrannualfrfinancialfrreportfr(CAFR).frWhatfrarefrthefrsectionsfroffrthefrreportfran
dfrwhichfrcomponentsfroffrthefrorganizationfrshouldfritfrinclude?frIsfrafrCAFRfrrequired?
3fr|frPfrafrgfre
, 11) ThefrGovernmentalfrAccountingfrStandardsfrBoardfrisfrassignedfrresponsibilityfrforfrsettingfraccountingfran
dfrfinancialfrreportingfrstandardsfrforfrwhichfroffrthefrfollowing?
A) Governmentsfrsuchfrasfrfederalfragencies,frstates,frcities,frcounties,frvillages,frandfrtownships.
B) Statefrandfrlocalfrgovernmentfrentitiesfrandfrgovernmentally-
relatedfrunitsfrandfragencies,frsuchfrasfrutilities,frauthorities,frhospitals,frandfrcollegesfrandfruniversities.
C) Not-for-profitfrorganizations.
D) Statefrandfrlocalfrgovernmentsfrandfrallfrnot-for-profitfrorganizations.
12) Whichfroffrthefrfollowingfrbodiesfrhasfrbeenfrestablishedfrtofrrecommendfraccountingfrandfrfinancialfrreportin
gfrstandardsfrforfrthefrfederalfrgovernment?
A) FinancialfrAccountingfrStandardsfrBoardfr(FASB).
B) GovernmentalfrAccountingfrStandardsfrBoardfr(GASB).
C) FederalfrAccountingfrFoundationfr(FAF).
D) FederalfrAccountingfrStandardsfrAdvisoryfrBoardfr(FASAB).
13) ThefrFinancialfrAccountingfrStandardsfrBoardfrhasfrthefrresponsibilityfrforfrsettingfraccountingfrandfrfinancia
lfrreportingfrstandardsfrforfrwhichfroffrthefrfollowing?
A) Allfrnot-for-profitfrorganizationsfrthatfrarefrnongovernmentalfrandfrbusinessfrentities.
B) Allfrnot-for-profitfrorganizationsfrandfrbusinessfrentities.
C) Allfrnot-for-profitfrorganizations.
D) Specialfrpurposefrgovernmentsfrwithfrafrbusinessfrpurpose.
14) Youfrarefrtryingfrtofrdecidefriffranfrentityfryoufrarefrreviewingfrisfrafrgovernmentfrorfrafrnot-for-
frprofit.frWhichfroffrthefrfollowingfrwouldfrindicatefritfrisfrafrgovernmentfrratherfrthanfrafrnot-for-profitfrentity?
A) Absencefroffrprofitfrmotive.
B) Afrprimaryfrsourcefroffrrevenuesfrisfrtaxes.
4fr|frPfrafrgfre
