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Governmental and Nonprofit Accountingn

Organizational Entities

  1.  
    Which of the following would not be considered a government or nonprofit organization?
    A. A public elementary school. B. A church. C. A private trust organized for charitable purposes. D. A software company that sells software exclusively to state and local governments.
  2.  
    Which of the following is not a primary financial reporting objective of state and local government reporting?
    A. Provide information necessary to assess the level of local government services and its ability to continue to finance its activities and meet its obligations. B. Provide information necessary for investment and credit decisions. C. Provide a means of demonstrating the state and local government’s accountability that enables users to assess that accountability. D. Provide information necessary to evaluate the state and local government’s operating results for the period.
  3.  
    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.
  4.  
    Expenditures in a governmental (expendable) fund would not potentially include
    A. Salaries and wages. B. Depreciation. C. Capital outlay. D. Long-term debt principal retirement.
  5.  
    Which organization has the highest level of authority for setting GAAP for nongovernment, not-for profit organizations?
    A. Governmental Accounting Standards Board (GASB). B. American Institute of Certified Public Accountants (AICPA). C. Financial Accounting Standards Board (FASB). D. National Council on Governmental Accounting (NCGA).
  6.  
    Each of the following would be defined as a governmental entity based on the definition of a government that was jointly developed by the GASB and FASB except
    A. A hospital formerly owned by a local government entity that was sold to and is now owned by a private, for-profit health care management corporation. B. A Historic Preservation District created by the governing board of the municipal government. C. A Charter School incorporated in accordance with state law and accountable to the state oversight agency. D. A financing authority that is legally separate from the municipal government, but provides financing for the government's major capital projects. The governing board of the financing authority is appointed by the municipal government's board.
  7.  
    The primary users of external financial reports, as identified by the GASB, include all of the following except
    A. Investors and creditors. B. Citizens. C. Other governments. D. Legislative and oversight bodies.
Answer Key
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Governmental and Nonprofit Accountingn (Answer Key)

Organizational Entities

  1.  
    Which of the following would not be considered a government or nonprofit organization?
    A. A public elementary school. B. A church. C. A private trust organized for charitable purposes. D. A software company that sells software exclusively to state and local governments.
  2.  
    Which of the following is not a primary financial reporting objective of state and local government reporting?
    A. Provide information necessary to assess the level of local government services and its ability to continue to finance its activities and meet its obligations. B. Provide information necessary for investment and credit decisions. C. Provide a means of demonstrating the state and local government’s accountability that enables users to assess that accountability. D. Provide information necessary to evaluate the state and local government’s operating results for the period.
  3.  
    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.
  4.  
    Expenditures in a governmental (expendable) fund would not potentially include
    A. Salaries and wages. B. Depreciation. C. Capital outlay. D. Long-term debt principal retirement.
  5.  
    Which organization has the highest level of authority for setting GAAP for nongovernment, not-for profit organizations?
    A. Governmental Accounting Standards Board (GASB). B. American Institute of Certified Public Accountants (AICPA). C. Financial Accounting Standards Board (FASB). D. National Council on Governmental Accounting (NCGA).
  6.  
    Each of the following would be defined as a governmental entity based on the definition of a government that was jointly developed by the GASB and FASB except
    A. A hospital formerly owned by a local government entity that was sold to and is now owned by a private, for-profit health care management corporation. B. A Historic Preservation District created by the governing board of the municipal government. C. A Charter School incorporated in accordance with state law and accountable to the state oversight agency. D. A financing authority that is legally separate from the municipal government, but provides financing for the government's major capital projects. The governing board of the financing authority is appointed by the municipal government's board.
  7.  
    The primary users of external financial reports, as identified by the GASB, include all of the following except
    A. Investors and creditors. B. Citizens. C. Other governments. D. Legislative and oversight bodies.

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