Gov&NFP - Chapter 1 | Super Survey Maker

A vibrant illustration depicting the concepts of government and non-profit accounting, featuring symbols of financial reporting, budgets, and community service.

Government and Non-Profit Accounting Quiz

Test your knowledge of accounting principles specifically tailored for governments and not-for-profit organizations. This quiz covers key differences, standards, and objectives that define the unique financial reporting landscape in these sectors.

Prepare yourself to answer questions like:

What drives financial decisions in governmental units?
Which standards are applicable to not-for-profit organizations?
How is interperiod equity maintained in public finance?

20 Questions5 MinutesCreated by LearningLedger247

The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that

They have different mission

They have fewer assets

Their assets are intangible

Taxes are a mojor expenditure of businesses

The primary objective of a not-for-profit organization or a government is to

Maximize revenues

Minimize expenditures

Provide services to constituents

All of the Above

In governments, in contrast to businesses

Expenditures are driven mainly by the ability of the entity to raise revenues

The amount of revenues collected is a signal of the demand for services

There may not be a direct relationship between revenues raised and the demnad for the entity's services

The amount of expenditures is independent of the amount of revenues collected

Government differ from businesses in that they

Do not raise capital in the financial markets

Do no necessarily engage in transactions in which they "sell" goods or services

Are not required to prepare annual financial reports

Do not issue common stock

Interperiod equity refers to a condition whereby

Total tax revenues are approximately the same from year to year

Taxes are disstributed fairly among all taxpayers, regardless of income level

Current-year revenues are sufficient to pay for current-year services

Current-year revenues cover both operating and capital expenditures

Which of the following is not on of the GASB's financial reporting objectives?

Providing information on the extent to which interperiod equity is achieved

Ensuring that budgeted revenues are equal to or exceed budgeted expenses

Reporting on budgetary compliance

Providing information on service efforts and accomplishments

Which of the following is not one of the FASB's financial reporting objectives?

Providing information on the extent to which interperiod equity is achieved

Ensuring that budgeted revenues are equal to or exceed budgeted expenses

Reporting on budgetary compliance

Providing information on service efforts and accomplishments

Rule 203 of the AICPA's Code of Professional COnduct pertains to

CPA's independence

Authorities designated to establish accounting standards

Standards of competency

Solicitation of new clients by a CPA

Which of the following rule-making authorities would establish accounting standards for Stanford University (a private university)?

AICPA

FASB

GASB

FASAB

Which of the following reul--making authorities would establish accounting standards for the University of WIsconsin (a public university)?

AICPA

FASB

GASB

FASAB

If the GASB has not issued a pronouncement on a specific issure, which of the following is true with respect to FASB pronouncements?

They would automatically govern

They could be taken into account but would have no higher standing than other accounting literature

They are irrelevant

They couldd be taken into account by the reporting entity but only if disclosure is made in noted to the financial statements

Standards promulgated by the FASB are most likley to be adhered to by which of the following governmental units?

A police department

A public school

An electric utility

A department of highways

Which of the following practices is most likely to undermine interperiod equity?

Paying for a new school building out of current operating funds

Paying the administrative staff of a school out of current operating funds

Issuing 20-year bonds to finance construction of a new highway

Recognizing gains and losses on marketable securities as prices increase and decrease

The term "independent secotr" refers to

States that have opted not to receive federal funds

Not-for-profit organizations

Churches that are unaffiliated with a particular denomination

Universities that are not affiliated with a particular athletic conference

Which of the following is not an objective of external financial reporting by either the GASB or the FASB?

To enable the statement users to detect fraud

To disclose legal or contractual restrictions on the use of resources

To provide information about how the organizations meet thier cash requirements

To provide information that would enable a user to assess the service potential of long-lived assets

Which of the following is the least appropriate use of the external financial statements of a government?

To assess the entity's financial condition

To assess whether the compensation of management is reasonable in relation to that of comparable entities

To compare actual results with budget

To evaluare the efficiency and effectiveness of the entity in achieving its objectives

Gov&NFP - Chapter 1

Government and Non-Profit Accounting Quiz

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