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Question 1

4 out of 4 points

The Governmental Accounting Standards Board is the primary standardsetting body for: Answer Selected Answer: All state and local governmental entities. Correct Answer: All state and local governmental entities.

Question 2
4 out of 4 points

The most significant financial document provided by a governmental entity may be Answer Selected Answer: the operating budget. Correct Answer: the operating budget.

Question 3
0 out of 4 points

In descending order, the hierarchy of GAAP applicable to a churchowned college may be: Answer Selected Answer: FASB Statements, FASB Technical Bulletins, FASB Implementation Guides, AICPA Practice Bulletins (if cleared by FASB). Correct Answer: FASB Statements, AICPA Industry Audit Guides, FASB

Implementation Guides, GASB Standards.

Question 4
4 out of 4 points

Which of the following is NOT a reason that users of government and not-for-profit external financial statements need to have information to enable them to assess the financial condition of a government? Answer Selected Answer: To evaluate the overall profitability of the entity. Correct Answer: To evaluate the overall profitability of the entity.

Question 5
4 out of 4 points

A regulatory agency would use the external financial statements of a local government for which of the following purposes? Answer Selected Answer: To do all of the above. Correct Answer: To do all of the above.

Question 6
4 out of 4 points

The primary standard-setting body for accounting and financial reporting by a state-supported college or university is: Answer Selected Answer: GASB . Correct Answer: GASB .

Question 7
4 out of 4 points

Users of financial statements should be interested in information about compliance with laws and regulations for which of the following reasons? Answer Selected Answer: To determine all of the above. Correct Answer: To determine all of the above.

Question 8
0 out of 4 points

Which of the following is NOT an objective of financial reporting for notfor-profit entities as established by FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in: Answer Selected Answer: Making rational decisions about the allocation of resources to those organizations. Correct Answer: Assessing the types of services provided and the need for those services.

Question 9
4 out of 4 points

Which of the following is common to both governments and not-forprofit entities but distinguishes these entities from for-profit entities? Answer Selected Answer: All of the above are common to both governments and notfor-profit entities but distinguish them from for-profit entities. Correct Answer: All of the above are common to both governments and notfor-profit entities but distinguish them from for-profit

entities.

Question 10
4 out of 4 points

Which of the following characteristics is NOT a characteristic that may distinguish a governmental or not-for-profit entity from a business entity? Answer Selected Answer: The mission of the entity will determine the goods or services provided. Correct Answer: The mission of the entity will determine the goods or services provided.

Question 11
4 out of 4 points

Governments and not-for-profits employ a system of accounting known as Answer Selected Answer: fund accounting Correct Answer: fund accounting

Question 12
4 out of 4 points

Which of the following objectives is considered to be the cornerstone of financial reporting by a governmental entity? Answer Selected Answer: Accountabili ty. Correct Answer: Accountabili ty.

Question 13
4 out of 4 points

Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to Answer Selected Answer: Assess the ability of elected officials to effectively manage people. Correct Answer: Assess the ability of elected officials to effectively manage people.

Question 14
4 out of 4 points

Under certain circumstances a governmental entity might use standards established by which of the following standard-setting bodies? Answer Selected Answer: All of the above. Correct Answer: All of the above.

Question 15
4 out of 4 points

In which of the following activities is a not-for-profit entity least likely to engage? Answer Selected Answer: Providing for the national defense. Correct Answer: Providing for the national defense.
Sunday, January 27, 2013 10:11:49 AM EST

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