1. Which of the following is a distinguishing characteristic of a nonbusiness organization?
Select one:
a. There is an absence of ownership interests that can be sold, transferred, or redeemed.
b. It does not depreciate its capital assets.
c. It does not charge fees for any of its services.
d. Its revenues do not exceed its expenses
2. For which type of organizations is the Financial Accounting Standards Board (FASB) responsible for establishing accounting and financial reporting standards?
Select one:
a. Business-type organizations only.
b. Business-type organizations; not-for-profit organizations; and all colleges, universities and health care providers, whether organized as not-for-profit or governmental entities.
c. All entities, except for those under the jurisdiction of the American Institue of CPAs.
d. Business-type organizations and not-for-profit organizations, including not-for-profit colleges, universities and health care providers.
3. To what extent do accounting standards promulgated by the Financial Accounting Standards Board (FASB) apply to state and local governmental entities?
Select one:
a. FASB standards never apply to governmental entities
b. FASB standards apply if so designated by the AICPA
c. All governmental entities have a choice between GASB and FASB standards
d. FASB standards apply if so designated by the GASB
4. Which of the following is the most authoritative source of accounting standards for not-for-profit colleges, universities, and health care providers?
Select one:
a. Current practices widely used by not-for-profit entities
b. FASB Statements and Interpretations
c. Consensus positions of the FASB Emerging Issues Task Force
d. AICPA Industry Audit Guides
5. To what extent do organizations that use fund accounting also report on the entity as a whole?
Select one:
a. Organizations that use fund accounting are not required to report on the entity as a whole
b. Organizations that use fund accounting are required to report on the entity as a whole
c. Organizations that choose to report on the entity as a whole are not permitted to use fund accounting for internal purposes
d. Organizations that use fund accounting have the option of reporting either on funds or on the organization as a whole
6. A not-for-profit organization performs all of the following activities except?
Select one:
a. Paying overtime to employees
b. Paying dividends to shareholders
c. Charging a fee for services provided
d. Purchasing long-lived (capital) assets
7. For which types of organizations is the Governmental Accounting Standards Board (GASB) responsible for establishing accounting and financial reporting standards?
Select one:
a. All governmental and not-for-profit organizations
b. All state and local governmental organizations, except for state and local governmental colleges, universities, health care providers, and utilities
c. All state and local governmental organizations, including government-sponsored colleges, universities, health care providers, and utilities
d. All state, local, and Federal organizations
8. Government and nonprofit accounting focuses on which of the following?
Select one:
a. Reporting to management
b. Demonstrating accountability
c. Protecting investors from fraud
d. Calculating profit or loss
9. Not-for-profit organizations obtain their revenues primarily from?
Select one:
a. Contributions from donors
b. Sales to customers
c. Taxes on real property
d. Taxes on personal property
