ACCT 5680 EXAM QUESTIONS AND ACCURATE
ANSWERS A+ GRADED
Characteristics that distinguish governmental and not-for-profit business entities from
business organizations include (2): - ANSWER -absence of defined ownershiip interests that
can be sold, transferred, or redeemed
-receipts of significant amounts of resources from resource providers who do not expect
repayment or other economic benefits
Which organization emphasizes the notion that governmental entities exist in an environment
where power lies with the people rather than shareholders? - ANSWER GASB
Which of the following statements are correct? (2) - ANSWER -taxpayers are involuntary
contributors of revenue to government
-there is a great need for public accountability in government financial reporting
states, counties, municipalities, and townships are examples of _____ purpose governments -
ANSWER general
Special purpose governments include - ANSWER -public colleges
,-independent school districts
The power delegated by voters assigned to public officials is divided among the _____, _____,
and _____ branches of government - ANSWER executive, judicial, legislative
Taxpayers: (2) - ANSWER -have little choice over the level of service they receive
-cannot rely on a net income figure to assess government performance
Under state law, _____ governments may levy and collect taxes and raise revenues from nontax
sources - ANSWER both general and special purpose
Independent school districts, and public colleges and universities are examples of _____
purpose governments - ANSWER special
Financial reporting is used in making economic, social and political decisions and in assessing
accountability - ANSWER State and local governments
Financial reporting should help achieve accountability and assist report users in evaluating
budgetary integrity - ANSWER Federal government
Financial reporting should provide information useful in makng resource allocation decisions -
ANSWER Not-for-profit organizations
,Governmental funds use a _____ basis of accounting - ANSWER modified accrual
Standards for the federal government and its agencies and departments are set by: - ANSWER
FASAB
Revenues are recognized in he period they are measurable and available for spending and
expenditures are recognized when they create an obligation to be paid from current financial
resources under the _____ _____ basis of accounting - ANSWER modified accrual
Most not-for-profit organizations follow _____ accounting and reporting standards - ANSWER
FASB
Government-wide financial statements assist in assessing operational _____- whether the
government has used its resources efficiently and effectively in meeting objectives - ANSWER
accountability
Service efforts and accomplishments (SEA) include: (2) - ANSWER -ouputs and outcomes
-quantitative measures of work done
The FASAB is concerned with _____ financial reporting - ANSWER both internal and external
, The four objectives of federal financial reporting identified by FASAB's Statement of
Accounting and Reporting Concepts Statement No. 1 are: - ANSWER -stewardship
-operating performance
-adequacy of systems and controls
-evaluating budgetary integrity
Under GASB, the term _____ _____ is substantially the same as the FASB term net assets -
ANSWER net position
A CAFR is: (2) - ANSWER -a government's comprehensive annual financial report
-not required
Fund financial statements' focus on the short-term flow of current financial resources make it
easier for users to assess _____ accountability- ensuring compliance with public decisions
concerning raising and spending resources - ANSWER fiscal
The _____ was established in 1990 to recommend accounting principles and standards for the
federal government and its agencies - ANSWER FASAB
ANSWERS A+ GRADED
Characteristics that distinguish governmental and not-for-profit business entities from
business organizations include (2): - ANSWER -absence of defined ownershiip interests that
can be sold, transferred, or redeemed
-receipts of significant amounts of resources from resource providers who do not expect
repayment or other economic benefits
Which organization emphasizes the notion that governmental entities exist in an environment
where power lies with the people rather than shareholders? - ANSWER GASB
Which of the following statements are correct? (2) - ANSWER -taxpayers are involuntary
contributors of revenue to government
-there is a great need for public accountability in government financial reporting
states, counties, municipalities, and townships are examples of _____ purpose governments -
ANSWER general
Special purpose governments include - ANSWER -public colleges
,-independent school districts
The power delegated by voters assigned to public officials is divided among the _____, _____,
and _____ branches of government - ANSWER executive, judicial, legislative
Taxpayers: (2) - ANSWER -have little choice over the level of service they receive
-cannot rely on a net income figure to assess government performance
Under state law, _____ governments may levy and collect taxes and raise revenues from nontax
sources - ANSWER both general and special purpose
Independent school districts, and public colleges and universities are examples of _____
purpose governments - ANSWER special
Financial reporting is used in making economic, social and political decisions and in assessing
accountability - ANSWER State and local governments
Financial reporting should help achieve accountability and assist report users in evaluating
budgetary integrity - ANSWER Federal government
Financial reporting should provide information useful in makng resource allocation decisions -
ANSWER Not-for-profit organizations
,Governmental funds use a _____ basis of accounting - ANSWER modified accrual
Standards for the federal government and its agencies and departments are set by: - ANSWER
FASAB
Revenues are recognized in he period they are measurable and available for spending and
expenditures are recognized when they create an obligation to be paid from current financial
resources under the _____ _____ basis of accounting - ANSWER modified accrual
Most not-for-profit organizations follow _____ accounting and reporting standards - ANSWER
FASB
Government-wide financial statements assist in assessing operational _____- whether the
government has used its resources efficiently and effectively in meeting objectives - ANSWER
accountability
Service efforts and accomplishments (SEA) include: (2) - ANSWER -ouputs and outcomes
-quantitative measures of work done
The FASAB is concerned with _____ financial reporting - ANSWER both internal and external
, The four objectives of federal financial reporting identified by FASAB's Statement of
Accounting and Reporting Concepts Statement No. 1 are: - ANSWER -stewardship
-operating performance
-adequacy of systems and controls
-evaluating budgetary integrity
Under GASB, the term _____ _____ is substantially the same as the FASB term net assets -
ANSWER net position
A CAFR is: (2) - ANSWER -a government's comprehensive annual financial report
-not required
Fund financial statements' focus on the short-term flow of current financial resources make it
easier for users to assess _____ accountability- ensuring compliance with public decisions
concerning raising and spending resources - ANSWER fiscal
The _____ was established in 1990 to recommend accounting principles and standards for the
federal government and its agencies - ANSWER FASAB
