ACC 308 Final Exam || 100% Exact Answers.
Which of the following organizations is the best source of information about differences across
states in educational and experience requirements to become a CPA? correct answers National
Association of State Boards of Accountancy (NASBA)
Each of the following is a type of resource that a not-for-profit, tax-exempt entity may receive,
except:
- Investment income
- Property taxes
- Contributions
- Charges for services correct answers Property taxes
Which of the following authoritative standards-setting bodies would establish accounting
standards for a private, not-for-profit museum that is entirely funded by donations and
membership fees? correct answers Financial Accounting Standards Board (FASB)
The authoritative standards-setting body that focuses on both internal and external financial
reporting is the: correct answers Federal Accounting Standards Advisory Board (FASAB)
The concept in state and local government financial reporting that describes assessing whether
current-year revenues are sufficient to cover current-year expenses is called: correct answers
Inter-period equity
The Federal Accounting Standards Advisory Board's (FASAB) objectives of financial reporting
for federal agencies includes assessing all of the following except:
- Adequacy of internal control systems
- Assessing operating performance
- Inter-period equity
- Budgetary integrity correct answers Inter-period equity
,Financial reporting for state and local governments is guided by the GASB's Concept Statement
No. 1 which stresses: correct answers Accountability
Tax-exempt, not-for-profit organizations are described using several different terms. The
abbreviation for a term that is used in an international context for not-for-profit,
nongovernmental organizations is: correct answers NGO
Government and not-for-profit accounting topics are explicitly tested on the following parts of
the CPA exam except:
- Auditing and attestation (AUD)
- Business environment and concepts (BEC)
- Financial accounting and reporting (FAR)
- Regulation (REG) correct answers Business Environment and Concepts (BEC)
Which of the following authoritative standards-setting bodies would establish accounting
standards for a federal agency, such as the Department of Education? correct answers Federal
Accounting Standards Advisory Board (FASAB)
The Financial Accounting Standards Board's (FASB) objectives of financial reporting for not-for-
profit organizations includes which of the following? correct answers Assessing management
stewardship and performance
Which of the following is ordinary considered on of the major characteristics distinguishing
governments from nongovernment, not-for-profit organizations? correct answers Governments
have the power to tax citizens
Which of the following is a true statement about accounting standard-setting bodies? correct
answers The FASB and GASB are administratively support by the Financial Accounting
Foundation; the FASAB draws its support from the federal government
, Which of the following statements is not true about the CPA exam?
- Each state creates its own version of the CPA exam
- Three off the four parts of the CPA exam explicitly test government and not-for-profit
accounting and auditing topics
- Each state may set its own conditions for sitting for the CPA exam and for obtaining a CPA
license in that state
- Each part includes multiple choice questions and task-based simulations correct answers Each
state creates its own version of the CPA exam
The Governmental Accounting Standards Board (GASB) has the authority to set accounting and
financial reporting standards for all of the following except:
- State and local governments
- Federal governmental agencies
- Public community colleges
- Governmental, not-for-profit entities correct answers Federal governmental agencies
You serve on a not-for-profit student organization that is independent of the university. It is
exempt from federal income taxes under Internal Revenue Code (IRC) section 501(c)3. The
President reports to the members that the organization must spend all the money it brings in
during a fiscal year because the organization is nonprofit. Which of the following statements is a
reasonable response to the President's claim? correct answers All of the above statements are
true:
- It is wise for a new not-for-profit organization to build up a balance in net assets without donor
restrictions as a "rainy day fund"
- There is no federal limit on the change in net assets for a year
- A tax-exempt entity must not distribute the excess of revenues over expenses to members or
owners
Which of the following statements is not true about private foundations?
- They make distributions to public charities that operate programs
- They fail to meet the internal and external support tests to be classified as a public charity
Which of the following organizations is the best source of information about differences across
states in educational and experience requirements to become a CPA? correct answers National
Association of State Boards of Accountancy (NASBA)
Each of the following is a type of resource that a not-for-profit, tax-exempt entity may receive,
except:
- Investment income
- Property taxes
- Contributions
- Charges for services correct answers Property taxes
Which of the following authoritative standards-setting bodies would establish accounting
standards for a private, not-for-profit museum that is entirely funded by donations and
membership fees? correct answers Financial Accounting Standards Board (FASB)
The authoritative standards-setting body that focuses on both internal and external financial
reporting is the: correct answers Federal Accounting Standards Advisory Board (FASAB)
The concept in state and local government financial reporting that describes assessing whether
current-year revenues are sufficient to cover current-year expenses is called: correct answers
Inter-period equity
The Federal Accounting Standards Advisory Board's (FASAB) objectives of financial reporting
for federal agencies includes assessing all of the following except:
- Adequacy of internal control systems
- Assessing operating performance
- Inter-period equity
- Budgetary integrity correct answers Inter-period equity
,Financial reporting for state and local governments is guided by the GASB's Concept Statement
No. 1 which stresses: correct answers Accountability
Tax-exempt, not-for-profit organizations are described using several different terms. The
abbreviation for a term that is used in an international context for not-for-profit,
nongovernmental organizations is: correct answers NGO
Government and not-for-profit accounting topics are explicitly tested on the following parts of
the CPA exam except:
- Auditing and attestation (AUD)
- Business environment and concepts (BEC)
- Financial accounting and reporting (FAR)
- Regulation (REG) correct answers Business Environment and Concepts (BEC)
Which of the following authoritative standards-setting bodies would establish accounting
standards for a federal agency, such as the Department of Education? correct answers Federal
Accounting Standards Advisory Board (FASAB)
The Financial Accounting Standards Board's (FASB) objectives of financial reporting for not-for-
profit organizations includes which of the following? correct answers Assessing management
stewardship and performance
Which of the following is ordinary considered on of the major characteristics distinguishing
governments from nongovernment, not-for-profit organizations? correct answers Governments
have the power to tax citizens
Which of the following is a true statement about accounting standard-setting bodies? correct
answers The FASB and GASB are administratively support by the Financial Accounting
Foundation; the FASAB draws its support from the federal government
, Which of the following statements is not true about the CPA exam?
- Each state creates its own version of the CPA exam
- Three off the four parts of the CPA exam explicitly test government and not-for-profit
accounting and auditing topics
- Each state may set its own conditions for sitting for the CPA exam and for obtaining a CPA
license in that state
- Each part includes multiple choice questions and task-based simulations correct answers Each
state creates its own version of the CPA exam
The Governmental Accounting Standards Board (GASB) has the authority to set accounting and
financial reporting standards for all of the following except:
- State and local governments
- Federal governmental agencies
- Public community colleges
- Governmental, not-for-profit entities correct answers Federal governmental agencies
You serve on a not-for-profit student organization that is independent of the university. It is
exempt from federal income taxes under Internal Revenue Code (IRC) section 501(c)3. The
President reports to the members that the organization must spend all the money it brings in
during a fiscal year because the organization is nonprofit. Which of the following statements is a
reasonable response to the President's claim? correct answers All of the above statements are
true:
- It is wise for a new not-for-profit organization to build up a balance in net assets without donor
restrictions as a "rainy day fund"
- There is no federal limit on the change in net assets for a year
- A tax-exempt entity must not distribute the excess of revenues over expenses to members or
owners
Which of the following statements is not true about private foundations?
- They make distributions to public charities that operate programs
- They fail to meet the internal and external support tests to be classified as a public charity
