Acc 365 Chapter 1 43 terms by icon360

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Which of the following governments B

would be considered a general purpose
government?
A) Mineral Valley State University.
B) Jackson County.
C) Billings Community Library.
D) Darien Consolidated School District.

The organization that establishes B

accounting and financial reporting
standards for the federal government is
the:
A) Governmental Accounting Standards
Board (GASB).
B) Federal Accounting Standards
Advisory Board (FASAB).
C) Financial Accounting Standards
Board (FASB).
D) Cost Accounting Standards Board
(CASB).
The Governmental Accounting D
Standards Board (GASB) has the
authority to set accounting and financial
reporting standards for all of the
following except:
A) Governmental not-for-profit
organizations.
B) State and local governments.
C) Public colleges and universities.
D) The federal government and its
agencies and departments.

Which of the following concepts is the C

cornerstone of governmental financial
reporting?
A) Relevance.
B) Interperiod equity.
C) Accountability.
D) Liquidity.

Federal accounting and reporting B

standards issued by the FASAB:
A) First require ratification by the GASB
before being released.
B) Are considered authoritative guidance
for the federal government and its
agencies and departments under Rule
203 of the AICPA Code of Professional
Conduct, as well as under the GAAP
hierarchy promulgated by the FASAB.
C) Should not be construed as generally
accepted accounting principles.
D) Both A and B are correct.
The concept of interperiod equity relates A
to whether:
A) Current period revenues are sufficient
to pay for current period services.
B) Current assets are larger than current
liabilities.
C) The organization enforces a policy of
tax equity.
D) All of the above.

Which authoritative standards-setting D

body focuses its standards on both
internal and external financial
reporting?

A) A
B) B
C) C
D) D

As compared with business C

organizations, which of the following are
distinguishing characteristics of
governments and not-for-profit
organizations?
A) Lower importance of cost accounting
systems.
B) Resource providers expect benefits
proportional to the resources provided.
C) Absence of profit motive.
D) All of the above.
Financial reporting by state and local A
governments should be useful in making
economic, social, and political decisions,
and in assessing accountability by:
A) Assisting in determining compliance
with finance-related laws, rules, and
regulations.
B) Assisting financial report users in
evaluating government profitability.
C) Improving government managers'
capacity to deliver services to the public.
D) All of the above.

Which of the following is included in the D

minimum requirements for general
purpose external financial reporting
specified by GASB standards?
A) Management discussion and analysis
(MD&A).
B) Government-wide financial
statements.
C) Fund financial statements.
D) All of the above.

Fiscal accountability can best be B

assessed by which required basic
financial statements?
A) Government-wide.
B) Governmental fund.
C) Both A and B are correct.
D) None of the above.
Which of the following required C
supplementary information (RSI) is
designed to communicate in narrative,
easily readable form the purpose of a
state or local government's basic
financial statements and current
financial position?
A) Independent auditor's report.
B) Letter of transmittal.
C) Management's Discussion and
Analysis (MD&A).
D) Notes to the financial statements.

Government-wide financial statements D

are intended to assist financial
statement users in assessing:

A) A
B) B
C) C
D) D

Which of the following is not one of the A

three categories of funds identified in
Chapter 1?
A) Operating.
B) Governmental.
C) Proprietary.
D) Fiduciary.

The basis of accounting that reports C

revenues when measurable and available
for spending, rather than when earned,
is called the:
A) Cash basis.
B) Modified cash basis.
C) Modified accrual basis.
D) Accrual basis.
Which of the following best describes the D
relationship between a government's
comprehensive annual financial report
(CAFR) and the minimum general
purpose external financial reporting
requirements under GASB standards?
A) The CAFR has the same content as
the minimum requirements for general
purpose external financial reporting.
B) The minimum requirements for
general purpose external financial
reporting are included as a part of a
CAFR.
C) A CAFR is recommended but not
required; the MD&A, basic financial
statements (government-wide and fund,
including notes), and required
supplementary information other than
MD&A are the minimum requirements
for general purpose external financial
reporting.
D) Both B and C are correct.

Which of the following would A

appropriately be reported in the
financial section of a CAFR?
A) An MD&A.
B) Letter of transmittal.
C) Statistical tables and charts showing
demographic and economic data.
D) All of the above.

Federal agencies and departments C

provide which of the following
information in their performance and
accountability report?

A) A
B) B
C) C
D) D
Which of the following is included as B
part of the Financial Report of the
United States Government but not the
performance and accountability report
(PAR) prepared by federal agencies and
departments?
A) MD&A.
B) A Citizen's Guide.
C) Financial statements.
D) All of the above are included in both
reports.

Which of the following reflects the C

appropriate classification categories for
the net assets of not-for-profit
organizations?
A) Restricted, designated, unrestricted.
B) Restricted and unrestricted.
C) Permanently restricted, temporarily
restricted, unrestricted.
D) Program, management and general,
fund-raising.

The Governmental Accounting B

Standards Board is assigned
responsibility for setting accounting and
financial reporting standards for

A. Governments; such as federal

agencies, states, cities, counties, villages,
and townships.

B. State and local government entities

and governmentally-related units and
agencies, such as utilities, authorities,
hospitals, and colleges and universities.

C. Not-for-profit organizations.

D. State and local government and all

not-for-profit organizations.
The body that has been established to D
recommend accounting and financial
reporting standards for the federal
government is the

A. Financial Accounting Standards

Board (FASB).

B. Governmental Accounting Standards

Board (GASB).

C. Government Accountability Office

(GAO).

D. Federal Accounting Standards

Advisory Board (FASAB).

The Financial Accounting Standards A

Board has the responsibility for setting
accounting and financial reporting
standards for

A. All not-for-profit organizations that

are nongovernmental and business
entities.

B. All special purpose governments.

C. All not-for-profit organizations.

D. All federal government agencies.

Which of the following distinguishes B
governments from nongovernmental
not-for-profit organizations?

A. Absence of profit motive.

B. The power to enact and enforce a tax

levy.

C. Resource providers do not expect

benefits proportional to the resources
provided.

D. Absence of a defined ownership

interest that can be sold, transferred, or
redeemed.

Which of the following is identified by C

the GASB as the "cornerstone" of all
financial reporting in government?

A. Understandability.

B. Representational faithfulness.

C. Accountability.

D. Interperiod equity.
Which of the following organizations A
issue standards that are intended for
both internal and external users of
financial information?

A. Federal Accounting Standards

Advisory Board.

B. Governmental Accounting Standards

Board.

C. Financial Accounting Standards

Board.

D. American Institute of CPAs.

Which of the following is identified by B

the FASAB as the foundation for federal
financial reporting?

A. Decision usefulness.

B. Accountability.

C. Understandability.

D. Budget integrity.
Which of the following is not an A
objective of financial reporting by state
and local governments?

A. To assist users in assessing the

adequacy of systems and controls.

B. To assist users in assessing financial

condition and results of operations.

C. To assist financial report users in

comparing actual financial results with
the legally adopted budget.

D. To assist in determining compliance

with finance-related laws, rules, and
regulations.

Which of the following groups is A

considered a primary user of a state or
local government's general-purpose
external financial statements?

A. Citizens.

B. Managers and administrators.

C. Employees.

D. Special interest groups.

One of the minimum requirements for A
general purpose external financial
reporting is:

A. Management's discussion and

analysis (MD&A).

B. Consolidated financial statements.

C. Other supplementary information,

such as combining and individual fund
statements.

D. Statistical information.

A comprehensive annual financial report B

(CAFR) prepared in conformity with
GASB recommendations should include
which of the following sections?

A. Letter of transmittal, management's

discussion and analysis (MD&A), and
financial.

B. Introductory, financial, and

statistical.

C. Introductory, MD&A, and financial.

D. Letter of transmittal, financial, and

supplementary.
Which of the following would be D
included in a properly prepared
comprehensive annual financial report
(CAFR), but not in the minimum
requirements for general purpose
financial reporting specified by GASB
standards?

A. Management's discussion and

analysis (MD&A).

B. Government-wide financial
statements.

C. Notes to the financial statements.

D. Combining and individual fund

financial statements.

A statistical section should be included A

in

A. A comprehensive annual financial

report (CAFR).

B. The basic financial statements.

C. The notes to the financial statements.

D. Required supplementary information,

other than MD&A.
Which of the following would typically D
not be included in the introductory
section of a comprehensive annual
financial report?

A. Title and contents page.

B. Letter of transmittal.

C. A description of the government.

D. Summary of the government's current

financial position and results of financial
activities.

The section of the comprehensive annual C

financial report that presents tables and
charts showing social and economic data
in addition to financial trends, fiscal
capacity, and operating information of
the government is the:

A. Introductory section.

B. Management's discussion and

analysis section.

C. Statistical section.

D. Financial section.
Which of the following should be B
included in the financial section of a
comprehensive annual financial report?

A. Transmittal letter.

B. The basic financial statements,

including notes thereto.

C. Tables and charts showing

demographic and economic data.

D. A description of the government.

On what should the government-wide A

financial statements report?

A. Net position and results of financial

operations of the government as a
whole.

B. Fiscal accountability.

C. The cost of government services.

D. Budgetary compliance.

Which of the following standard-setting D

bodies requires a management's
discussion and analysis as a part of the
financial report?

A. GASB.

B. FASB.

C. FASAB.

D. Both A and C.
31. On what should the governmental B
fund financial statements report?

A. Net position and results of financial

operations of the government as a
whole.

B. Fiscal accountability.

C. Operational accountability.

D. Cost of government services.

Which of the following sections is not C

considered a part of a federal agency's
performance and accountability report?

A. Basic financial statements.

B. Annual performance report.

C. Statistical section.

D. Management's discussion and

analysis.

Which of the following types of B

organizations may be subject to FASB
jurisdiction?

A. A state hospital.

B. A college or university.

C. A public school district.

D. A public sanitation district.

Which of the following statements is A
prepared by all not-for-profit
organizations?

A. Statement of financial position.

B. Statement of functional expenses.

C. Statement of revenues, expenses, and

changes in net position.

D. Both A and B.

Recognizing revenues when measurable B

and available for paying current
obligations and expenditures when
incurred describes which basis of
accounting?

A. Accrual.

B. Modified accrual.

C. Modified cash.

D. Budgetary.