PART 1
FOR EACH OF THE FOLLOWING DETERMINE THE BEST OPTION TO USE:
(2 pts each Total of 40pts) OPTIONS ARE: FOR PROFIT, NOT FOR PROFIT – NGO,
NOT FOR PROFIT - GOVERNMENTAL, GOVERNMENT, ALL OF THESE, NONE OF
THESE
1. YMCA - NOT FOR PROFIT-NGO
2. BELIZE BANK - FOR PROFIT
3. ST IGNATIOUS CHURCH - NOT FOR PROIT-NGO
4. MINISTRY OF FINANCE - GOVERNMENT
5. BELMPOAN CITY COUNCIL - GOVERNMENT
6. BEHAVIOURAL MODIFICATION AND CONFLICT MANAGEMENT
SERVICES(CYDP) - NOT FOR PROFIT - GOVERNMENTAL
7. EX SERVICE MEN LEAGUE - NOT FOR PROFIT - NGO
8. GASB - CITY OF HOUSTON - GOVERNMENT
9. IFRS - PKF - FOR PROFIT
10. IFRS - CHAMBER - NOT FOR PROFIT - NGO
11. USES GOVERNMENTAL, PROPRIETARY AND FIDUCIARY FUNDS -
GOVERNMENT
12. EARNINGS PER SHARE - FOR PROFIT
13. REVENUE MAXIMIZATION - FOR PROFIT
14. LEVY TAXES - GOVERNMENT
15. GRANTS & CONTRIBUTIONS —PACT – NOT FOR PROFIT - NGO
16. Comprehensive Annual Financial Reporter(CAFR) OR ACFR - GOVERNMENT
17. ASSETS = LIABILITIES AND EQUITY – FOR PROFIT
18. MD & A= ALL OF THEM
19. AUDITORS OPINION - ALL OF THEM
20. AUDITING STANDARDS ISSUED BY COMPTROLLER GENERAL FO US -
GOVERNMENT
PART 11 MULTIPLE CHOICE QUESTIONS – 2 points each TOTAL OF 40 PTS
1. Which of the following would be considered a nonprofit organization?
A. PKF LLP
B. Bowen and Bowen Ltd
C. Belize Water Service Ltd
D. Ex Servicemen League
2. Which of the following would be considered a governmental organization?
A. Belize Water Services Ltd
B. National Sport Council
C. Chamber of Commerce
D. Ghanns Rest House
3. Which of the following would NOT be considered a nonprofit organization?
A. St. Joseph Church
B. BFLA
C. Belize Water Services Ltd
D. YWCA
4. Which of the following would be considered an NGO?
A. PKF LLP
B. Bowen and Bowen Ltd
C. Belize Water Services Ltd
D. BFLA
5.Which of the following characteristics best distinguishes a government entity from a business
entity?
A. Governments operate in a very small section of the economy while businesses operate
globally
B. Cost analysis and other control and evaluation techniques are essential to ensure that
resources are used economically and efficiently
C. Those contributing resources to the entity do not necessarily receive a direct of
proportionate share the services
D. Businesses must acquire and convert scarce resources while governments can demand
whatever they need
6. The governmental GAAP hierarchy was established by
A. The Financial Accounting Foundation (FAF)
B. The American Institute of Certified Public Accountants(AICPA)
C. The Financial Accounting Standards Board (FASB)
D. The Governmental Accounting Standards Board (GASB)
7. Not for Profits in Belize must file annual returns with:
A. Belize Tax Services Office
B. Governor General Office
C. Financial Secretary Office
D. Company Registry Office
8. An activity that is unique to government is:
A. Budgeting
B. Cash management
C. Levying tax
D. Advertising
9. Who audits the various government departments of GOB
A. Auditors from AICPA
B. Auditors from ICAB
C. Auditors From SAIB (supreme Audit Institution of Belize)
D. Audits of GOB departments are performed by anyone who wins the bid
10. Financial accounting standards form which accounting body is followed by BELIZE CITY
COUNCIL?
A. FASB
B. GASB
C. FASAB
D. IFRS
11. Because Belize City Council is a governmental entity which of the following is true?
A. Its annual report does not contain any long-term liabilities on its balance sheet
B. Its annual report does not contain a Statement of Cash Flows
C. There are no revenues on its income statement
D. Its Balance Sheet does not have any equity section
12. Which of the following does NOT apply for a Not For Profit Organization?
A. Its revenues exceed its expenses
B. It depreciates its capital assets
C. It charges fees for its services
D. Dividend payments are paid to its preferred shareholders first
13. Which of the following is NOT a Governmental Fund?
A. Special Revenue Fund
B. Permanent Fund
C. Internal Service Fund
D. Debt Service Fund
14. Which of the following is NOT a characteristic of a fund?
A. Fiscal entity
B. Separate Legal entity
C. Accounting entity
D. Contains self-balancing set of accounts
15. The primary purpose of a fund is:
A. To provide expenditure authority for a government or not-for-profit organization.
B. To segregate an organization’s resources according to the purpose(s) for which they
are to be used.
C. To keep an organization’s constituency form trying to insist that the organization utilize
resources that it wants to save for specific future objective.
D. To confuse and confound the legislative body as to the use and purpose of government
16. Belize City Council can only have one:
A. Capital Project Fund
B. Debt Service Fund
C. Special Revenue Fund
D. General Fund
17. Which of the following is the basic proprietary fund accounting equation?
A. Assets – Liabilities = Net Assets.
B. Assets = Liabilities and Equity
C. Financial Assets + Deferred Outflows – Related Liabilties – Deferred Inflows = Fund
Balance
D. Assets + Deferred Ouflows – Liabilities – Deferred Inflows = Net Position
18. Which of the following is the basic governmental fund accounting equation?
A. Assets – Liabilities = Net Assets
B. Assets = Liabilities and Equity
C. Assets + Deferred Ouflows – Liabilities – Deferred Inflows = Net Position
D. Financial Assets + Deferred Outflows – Related Liabilties – Deferred Inflows =
Fund Balance
19. Which of the following uses the flow of economic resources measurement focus?
A. General Fund
B. Debt Service Fund
C. Permanent Fund
D. Enterprise Fund
20. Which of the following uses the flow of current financial resources measurement focus?
A. Agency Fund
B. Enterprise Fund
C. Special Revenue Fund
D. Internal Service Fund
PART 111 SELECT THE BEST WORD OR PHRASE FOR EACH OF THE FOLLOWING:
WORD OR PHRASES MAY BE USED MORE THAN ONCE OR NOT AT ALL
(2 point each TOTAL OF 30 POINTS)
1. Separate accounting and financial reporting standards are essential because the needs of
users of financial reports of governments and business enterprises differ.
2. Businesses reviece revenues from voluntary exchange between a willing buyer and seller
3. Governments obtain resources primarily from the involuntary payment of taxes.
4. Governmental accounting and financial reporting standards aim to address the need for
public accountability.
5. Governments do not have shareholders
6. Creditors of both businesses and governments are interested in information on the ability
to repay debt
7. GASB’s financial reporting objectives consider public accountability to be the
cornerstone on which all other financial reporting objectives should be built.
8. Accounting and financial reporting requirements focus on the needs of users of financial
reports.
9. The needs of citizens and oversight organizations emphasize accountability for resources
entrusted to the government
10. GOB approved budget includes official charities fund that includes donation to BFLA
(not UB)
11. GOB approved budget includes recurrent expenditures as well as capital expenditures
12. The purpose of government is to enhance or maintain the well-being of citizens by
providing public services
13. Business enterprise focus on wealth creation
14. Business enterprise performance measures – net income and earnings per share have no
meaning in a governmental environment.
15. Differences in governmental and business financial reporting include the use of fund
accounting and budgetary reporting to meet public accountability needs
