Test Bank for Accounting for Governmental and Nonprofit Entities 19th Edition – Jacqueline L. Reck, Daniel Neely, Suzanne Lowensohn

Student name:_
J




1) ExplainJtheJessentialJdifferencesJbetweenJgeneralJpurposeJandJspecialJpurposeJg
overnmentsJandJgiveJseveralJexamplesJofJeach.




2) IdentifyJandJexplainJtheJcharacteristicsJthatJdistinguishJgovernmentsJandJnot-for-
profitJentitiesJfromJbusinessJentities.




3) GASBJandJFASBJstandardsJareJconcernedJonlyJwithJexternalJfinancialJreporting;Jwhereas,J
FASABJstandardsJareJconcernedJwithJbothJinternalJandJexternalJfinancialJreporting.JDoJyouJagreeJw
ithJthisJstatement?JWhyJorJwhyJnot?




4) WhyJshouldJpersonsJinterestedJinJreadingJfinancialJreportsJofJgovernmentsJandJnot-for-
JprofitJentitiesJbeJfamiliarJwithJstandardsJsetJbyJtheJGASBJandJtheJFASB?




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,5) ExplainJginJgyourJgownJgwordsJgwhygaccountabilityJgisJgtheJgcornerstoneJgofJgallJgf
inancialJ gJ reportingJginJggovernment.




6) InJgyourJgownJgwordsJgstateJgtheJgprimaryJgneedsJgtheJgGASBJgbelievesJgexternalJgusersJgh
aveJgforJ gJ financialJgreportsJgofJgstateJgandJglocalJggovernments.JgForJgcontrast,JgstateJgtheJgusesJgtheJg
FASBJgbelievesJ gJ externalJgusersJghaveJgforJgtheJgfinancialJgreportsJgofJgnot-for-
profitJgorganizations.




7) DescribeJgtheJgdifferenceJgbetweenJgaJgcomprehensiveJgannualJgfinancialJgreportJg(CA
FR)JgandJ gJGASBJggeneralJgpurposeJgexternalJgfinancialJgreportingJgforJgstateJgandJglocalJggover
nments.




8) IdentifyJgandJgbrieflyJgexplainJgtheJgfourJgsectionsJgofJgtheJgperformanceJgandJgaccountabili
tygreportJgJ(PAR)JgthatJgtheJgOfficeJgofJgManagementJgandJgBudgetJgrequiresJgmajorJgfederalJgdepart
mentsJgandJ gJagenciesJgtoJgprepare.




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,9) ExplainJgtheJgconceptsJgofJgfiscalJgandJgoperationalJgaccountabilitygandJgtheJgbasisJgofJga
ccountingJ gJ usedJgtoJgcaptureJgeachJgconcept.




10) DescribeJgtheJgcomprehensiveJgannualJgfinancialJgreportJg(CAFR).JgWhatJgareJgtheJgsectionsJgo
fJgtheJ gJreportJgandJgwhichJgcomponentsJgofJgtheJgorganizationJgshouldJgitJginclude?JgIsJgaJgCAFRJgrequ
ired?




11) TheJgGovernmentalJgAccountingJgStandardsJgBoardJgisJgassignedJgresponsibilityJgforJgs
ettingJ gJ accountingJgandJgfinancialJgreportingJgstandardsJgforJgwhichJgofJgtheJgfollowing?

A) GovernmentsJgsuchJgasJgfederalJgagencies,Jgstates,Jgcities,Jgcounties,Jg
villages,JgandJ gJ townships.
B) StateJgandJglocalJggovernmentJgentitiesJgandJggovernmentally-
relatedJgunitsJgandJgagencies,J gJ suchJgasJgutilities,Jgauthorities,Jghospitals,JgandJgcollegesJgandJ
guniversities.
C) Not-for-profitJgorganizations.
D) StateJgandJglocalJggovernmentsJgandJgallJgnot-for-profitJgorganizations.




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, 12) WhichJgofJgtheJgfollowingJgbodiesJghasJgbeenJgestablishedJgtoJgrecommendJga
ccountingJgandJgJfinancialJgreportingJgstandardsJgforJgtheJgfederalJggovernment?

A) FinancialJgAccountingJgStandardsJgBoardJg(FASB).
B) GovernmentalJgAccountingJgStandardsJgBoardJg(GASB).
C) FederalJgAccountingJgFoundationJg(FAF).
D) FederalJgAccountingJgStandardsJgAdvisorygBoardJg(FASAB).




13) TheJgFinancialJgAccountingJgStandardsJgBoardJghasJgtheJgresponsibilityJgforJgsettingJga
ccountingJ gJ andJgfinancialJgreportingJgstandardsJgforJgwhichJgofJgtheJgfollowing?

A) AllJgnot-for-profitJgorganizationsJgthatJgareJgnongovernmentalJgandJgbusinessJgentities.
B) AllJgnot-for-profitJgorganizationsJgandJgbusinessJgentities.
C) AllJgnot-for-profitJgorganizations.
D) SpecialJgpurposeJggovernmentsJgwithJgaJgbusinessJgpurpose.




14) YouJgareJgtryingJgtoJgdecideJgifJganJgentityJgyouJgareJgreviewingJgisJgaJggovernmentJgorJgaJg
not-for-
JgJprofit.JgWhichJgofJgtheJgfollowingJgwouldJgindicateJgitJgisJgaJggovernmentJgratherJgthanJgaJgnot-


for-profitJ gJ entity?

A) AbsenceJgofJgprofitJgmotive.
B) AJgprimarygsourceJgofJgrevenuesJgisJgtaxes.
C) ResourceJgprovidersJgdoJgnotJgexpectJgbenefitsJgproportionalJgtoJgtheJgresourcesJgp
rovided.
D) AbsenceJgofJgaJgdefinedJgownershipJginterestJgthatJgcanJgbeJgsold,Jgtransferred,JgorJgr
edeemed.




15) WhichJgofJgtheJgfollowingJgisJgidentifiedJgbyJgtheJgGASBJgasJgtheJg"cornerstone"JgofJgallJgfi
nancialJ gJ reportingJginJggovernment?

A) DecisionJgusefulness.
B) Stewardship.
C) Accountability.

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