The Government and Not-For-Profit Environment
TRUE/FALSE (CHAPTER 1)
1 . F The primary objective of a typical governmental or not-for-profit entity is to earn a profit.
2 . TA government's budget could possibly be backed by the force of law.
three or more. FGovernmental entities have no need for a great accounting program.
4. TAG government's internal managers count on general purpose economic statements to get a considerable amount of information about their government.
5. FGovernments and nonprofits may hardly ever engage in business-type activities.
six. TLenders utilize financial claims of governments and not-for profits just like they would those of businesses, that is certainly, to help measure the borrower's credit-worthiness.
7. TFinancial statements, regardless of how prepared, usually do not directly affect the economic well worth of an business.
8. FThe Financial Accounting Standards Advisory Board's criteria do not apply to the national Department of Treasury.
being unfaithful. TGovernments may be subject to precisely the same pressures that led to accounting scandals like Enron.
twelve. FThe Government Accounting Standards Board establishes generally accepted accounting concepts for all state and local govt entities, and also all not-for-profit entities.
MULTIPLE CHOICE (CHAPTER 1)
1 . A primary characteristic that distinguishes governmental entities from organization entities is usually a) The need to generate earnings equal to or perhaps in excess of expenditures/expenses. b) The value of the budget in the regulating process.
c) The need to offer goods or services.
d) The relationship between income generated and demand for goods or services.
2 . An initial characteristic that distinguishes not-for-profit entities by business organizations is a) The need to make revenues equal to or more than expenditures/expenses. b) The importance of the budget in the governing method. c) The necessity to provide services or goods.
d) The correlation between revenues produced and demand for goods or services.
several. Which from the following attributes distinguishes a governmental or perhaps not-for-profit business from a small business entity? a) There is always an immediate link among revenues made and expenditures/expenses incurred. b) Capital assets are used to develop revenues and save costs. c) Income are always indicative of with regard to goods and services. d) The quest of the enterprise will identify the goods or perhaps services offered.
4. The most significant financial record provided by a governmental organization is the a) The balance bed sheet.
b) The operating declaration.
c) The operating spending budget.
d) The money flow statement.
5. Which will of the following statements is valid?
a) Governments may possibly engage in activities similar to activities engaged in by simply for-profit choices. b) A few limited number of different types of governments. c) All government entities engage in the same actions.
d) Managers may have a long lasting focus and thereby sacrifice the initial liquidity with the entity.
6. Which with the following actions is Rather than an activity in which a governmental organization might engage? a) Offering electric power.
b) Operating a golf course.
c) Operating a bookstore.
d) All of the above are actions that might be carried out by a govt.
7. By which of the next activities is a not-for-profit organization least likely to engage? a) Providing educational services.
b) Providing health-care services.
c) Providing for terrorism protection.
d) Price tag sales of cookies.
almost eight. Which with the following could be affected by GAAP?
a) Legal ability to issue bonds.
b) Ability to stability the budget.
c) Amount reported as staff pension prepare contributions. d) Claims and judgments resolved.
9. Which usually of the next characteristics is exclusive to a governmental entity? a) The ability to have activities borrowed with tax-exempt debt. b) The power to impose service fees.
c) To be able to issue...