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Test Bank For Accounting for Governmental &
Nonprofit Entities [Answers at the end] A+
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
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3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
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5) Explain gin gyour gown gwords gwhygaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave gfor g financial greports gof gstate gand glocal ggovernments. gFor gcontrast, gstate gthe guses
gthe gFASB gbelieves g external gusers ghave gfor gthe gfinancial greports gof gnot-for-profit
gorganizations.
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g(CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting gfor gstate gand glocal
ggovernments.
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountabilitygreport g (PAR) gthat gthe gOffice gof gManagement gand gBudget grequires gmajor
gfederal gdepartments gand g agencies gto gprepare.
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9) Explain gthe gconcepts gof gfiscal gand goperational gaccountabilitygand gthe gbasis gof
gaccounting g used gto gcapture geach gconcept.
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report gand gwhich gcomponents gof gthe gorganization gshould git ginclude? gIs ga gCAFR
grequired?
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
gsetting g accounting gand gfinancial greporting gstandards gfor gwhich gof gthe gfollowing?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
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Test Bank For Accounting for Governmental &
Nonprofit Entities [Answers at the end] A+
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
Version 1 1
,Medstudy.com
3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
Version 1 2
,Medstudy.com
5) Explain gin gyour gown gwords gwhygaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave gfor g financial greports gof gstate gand glocal ggovernments. gFor gcontrast, gstate gthe guses
gthe gFASB gbelieves g external gusers ghave gfor gthe gfinancial greports gof gnot-for-profit
gorganizations.
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g(CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting gfor gstate gand glocal
ggovernments.
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountabilitygreport g (PAR) gthat gthe gOffice gof gManagement gand gBudget grequires gmajor
gfederal gdepartments gand g agencies gto gprepare.
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9) Explain gthe gconcepts gof gfiscal gand goperational gaccountabilitygand gthe gbasis gof
gaccounting g used gto gcapture geach gconcept.
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report gand gwhich gcomponents gof gthe gorganization gshould git ginclude? gIs ga gCAFR
grequired?
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
gsetting g accounting gand gfinancial greporting gstandards gfor gwhich gof gthe gfollowing?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
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