Test Bank for Accounting for
p p p p
Governmental & Nonprofit Entities p p p p
19th Edition by Jacqueline L. Reck, S
p p p p p p
uzanne Lowensohn & Daniel Neely
p p p p
Complete Chapters With Verified Q&As| A+ PASS A
p p p p p p p
nswers at the Back of Each Chapter
p p p p p p
1p|pPpapgpe
, Chapterp1
1) Explainpthepessentialpdifferencespbetweenpgeneralppurposepandpspecialppurposepgovernmentspandpgivep
severalpexamplespofpeach.
2) Identifypandpexplainpthepcharacteristicspthatpdistinguishpgovernmentspandpnot-for-
profitpentitiespfrompbusinesspentities.
3) GASBpandpFASBpstandardsparepconcernedponlypwithpexternalpfinancialpreporting;pwhereas,pFASABp
standardsparepconcernedpwithpbothpinternalpandpexternalpfinancialpreporting.pDopyoupagreepwithpthispstat
ement?pWhyporpwhypnot?
4) Whypshouldppersonspinterestedpinpreadingpfinancialpreportspofpgovernmentspandpnot-for-
pprofitpentitiespbepfamiliarpwithpstandardspsetpbypthepGASBpandpthepFASB?
5) Explainpinpyourpownpwordspwhypaccountabilitypispthepcornerstonepofpallpfinancialpreportingpinp
government.
2p|pPpapgpe
,6) InpyourpownpwordspstatepthepprimarypneedspthepGASBpbelievespexternalpusersphavepforpfinancialpreportsp
ofpstatepandplocalpgovernments.pForpcontrast,pstatepthepusespthepFASBpbelievespexternalpusersphavepforpthepf
inancialpreportspofpnot-for-profitporganizations.
7) Describepthepdifferencepbetweenpapcomprehensivepannualpfinancialpreportp(CAFR)pandpGASBpgeneralp
purposepexternalpfinancialpreportingpforpstatepandplocalpgovernments.
8) Identifypandpbrieflypexplainpthepfourpsectionspofpthepperformancepandpaccountabilitypreportp(PAR)pthatpt
hepOfficepofpManagementpandpBudgetprequirespmajorpfederalpdepartmentspandpagenciesptopprepare.
9) Explainpthepconceptspofpfiscalpandpoperationalpaccountabilitypandpthepbasispofpaccountingpusedptop
capturepeachpconcept.
10) Describepthepcomprehensivepannualpfinancialpreportp(CAFR).pWhatparepthepsectionspofpthepreportpandp
whichpcomponentspofptheporganizationpshouldpitpinclude?pIspapCAFRprequired?
3p|pPpapgpe
, 11) ThepGovernmentalpAccountingpStandardspBoardpispassignedpresponsibilitypforpsettingpaccountingpandp
financialpreportingpstandardspforpwhichpofpthepfollowing?
A) Governmentspsuchpaspfederalpagencies,pstates,pcities,pcounties,pvillages,pandptownships.
B) Statepandplocalpgovernmentpentitiespandpgovernmentally-
relatedpunitspandpagencies,psuchpasputilities,pauthorities,phospitals,pandpcollegespandpuniversities.
C) Not-for-profitporganizations.
D) Statepandplocalpgovernmentspandpallpnot-for-profitporganizations.
12) Whichpofpthepfollowingpbodiesphaspbeenpestablishedptoprecommendpaccountingpandpfinancialpreportingp
standardspforpthepfederalpgovernment?
A) FinancialpAccountingpStandardspBoardp(FASB).
B) GovernmentalpAccountingpStandardspBoardp(GASB).
C) FederalpAccountingpFoundationp(FAF).
D) FederalpAccountingpStandardspAdvisorypBoardp(FASAB).
13) ThepFinancialpAccountingpStandardspBoardphaspthepresponsibilitypforpsettingpaccountingpandpfinancialp
reportingpstandardspforpwhichpofpthepfollowing?
A) Allpnot-for-profitporganizationspthatparepnongovernmentalpandpbusinesspentities.
B) Allpnot-for-profitporganizationspandpbusinesspentities.
C) Allpnot-for-profitporganizations.
D) Specialppurposepgovernmentspwithpapbusinessppurpose.
14) Youpareptryingptopdecidepifpanpentitypyouparepreviewingpispapgovernmentporpapnot-for-
pprofit.pWhichpofpthepfollowingpwouldpindicatepitpispapgovernmentpratherpthanpapnot-for-profitpentity?
A) Absencepofpprofitpmotive.
B) Apprimarypsourcepofprevenuespisptaxes.
4p|pPpapgpe
p p p p
Governmental & Nonprofit Entities p p p p
19th Edition by Jacqueline L. Reck, S
p p p p p p
uzanne Lowensohn & Daniel Neely
p p p p
Complete Chapters With Verified Q&As| A+ PASS A
p p p p p p p
nswers at the Back of Each Chapter
p p p p p p
1p|pPpapgpe
, Chapterp1
1) Explainpthepessentialpdifferencespbetweenpgeneralppurposepandpspecialppurposepgovernmentspandpgivep
severalpexamplespofpeach.
2) Identifypandpexplainpthepcharacteristicspthatpdistinguishpgovernmentspandpnot-for-
profitpentitiespfrompbusinesspentities.
3) GASBpandpFASBpstandardsparepconcernedponlypwithpexternalpfinancialpreporting;pwhereas,pFASABp
standardsparepconcernedpwithpbothpinternalpandpexternalpfinancialpreporting.pDopyoupagreepwithpthispstat
ement?pWhyporpwhypnot?
4) Whypshouldppersonspinterestedpinpreadingpfinancialpreportspofpgovernmentspandpnot-for-
pprofitpentitiespbepfamiliarpwithpstandardspsetpbypthepGASBpandpthepFASB?
5) Explainpinpyourpownpwordspwhypaccountabilitypispthepcornerstonepofpallpfinancialpreportingpinp
government.
2p|pPpapgpe
,6) InpyourpownpwordspstatepthepprimarypneedspthepGASBpbelievespexternalpusersphavepforpfinancialpreportsp
ofpstatepandplocalpgovernments.pForpcontrast,pstatepthepusespthepFASBpbelievespexternalpusersphavepforpthepf
inancialpreportspofpnot-for-profitporganizations.
7) Describepthepdifferencepbetweenpapcomprehensivepannualpfinancialpreportp(CAFR)pandpGASBpgeneralp
purposepexternalpfinancialpreportingpforpstatepandplocalpgovernments.
8) Identifypandpbrieflypexplainpthepfourpsectionspofpthepperformancepandpaccountabilitypreportp(PAR)pthatpt
hepOfficepofpManagementpandpBudgetprequirespmajorpfederalpdepartmentspandpagenciesptopprepare.
9) Explainpthepconceptspofpfiscalpandpoperationalpaccountabilitypandpthepbasispofpaccountingpusedptop
capturepeachpconcept.
10) Describepthepcomprehensivepannualpfinancialpreportp(CAFR).pWhatparepthepsectionspofpthepreportpandp
whichpcomponentspofptheporganizationpshouldpitpinclude?pIspapCAFRprequired?
3p|pPpapgpe
, 11) ThepGovernmentalpAccountingpStandardspBoardpispassignedpresponsibilitypforpsettingpaccountingpandp
financialpreportingpstandardspforpwhichpofpthepfollowing?
A) Governmentspsuchpaspfederalpagencies,pstates,pcities,pcounties,pvillages,pandptownships.
B) Statepandplocalpgovernmentpentitiespandpgovernmentally-
relatedpunitspandpagencies,psuchpasputilities,pauthorities,phospitals,pandpcollegespandpuniversities.
C) Not-for-profitporganizations.
D) Statepandplocalpgovernmentspandpallpnot-for-profitporganizations.
12) Whichpofpthepfollowingpbodiesphaspbeenpestablishedptoprecommendpaccountingpandpfinancialpreportingp
standardspforpthepfederalpgovernment?
A) FinancialpAccountingpStandardspBoardp(FASB).
B) GovernmentalpAccountingpStandardspBoardp(GASB).
C) FederalpAccountingpFoundationp(FAF).
D) FederalpAccountingpStandardspAdvisorypBoardp(FASAB).
13) ThepFinancialpAccountingpStandardspBoardphaspthepresponsibilitypforpsettingpaccountingpandpfinancialp
reportingpstandardspforpwhichpofpthepfollowing?
A) Allpnot-for-profitporganizationspthatparepnongovernmentalpandpbusinesspentities.
B) Allpnot-for-profitporganizationspandpbusinesspentities.
C) Allpnot-for-profitporganizations.
D) Specialppurposepgovernmentspwithpapbusinessppurpose.
14) Youpareptryingptopdecidepifpanpentitypyouparepreviewingpispapgovernmentporpapnot-for-
pprofit.pWhichpofpthepfollowingpwouldpindicatepitpispapgovernmentpratherpthanpapnot-for-profitpentity?
A) Absencepofpprofitpmotive.
B) Apprimarypsourcepofprevenuespisptaxes.
4p|pPpapgpe
