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
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
Related questions
12. For the purpose of government-wide financial statements, thecost of cleaning up a government-owned landfill and closing thelandfill
A) Is not recognized until the costs are actually incurred
B) Is accrued and amortized over the expected useful life of thelandfill
C) Is accrued on a pro-rated basis each period based on how fullthe landfill is
D) Is accrued in full at the time the costs become estimable
E) Is treated as an encumbrance at the time it become estimable andas an expenditure when it is actually paid
13. Drye Township has received adonation of a rare painting worth $1,000,000. For Drye'sgovernment-wide financial statements, three criteria must be metbefore Drye can opt not to recognize the painting as an asset.Which of the following is not one of the three criteria?(1.) Thepainting is held for public exhibition, education, or research infurtherance of public service, rather than financial gain.(2.) Thepainting is scheduled to be sold immediately at auction.(3.) Thepainting is protected, kept unencumbered, cared for, andpreserved.
A) Item 1 is not one of the three criteria
B) Item 2 is not one of the three criteria
C) Item 3 is not one of the three criteria
D) All three items are required criteria
E) None of the three items are required criteria
14. Which of the following is nota criterion of a capital lease?
A) The lease transfers ownership of the property to the lesseeby the end of the lease term
B) The present value of the minimum lease payments equals orexceeds 90 percent of the fair value of the leased property, net oflessor's investment tax credit
C) The lease contains an option to purchase the leased property ata bargain price
D) The lease contains an option to renew
E) The lease term is equal to or greater than 75 percent of theestimated economic life of the leased property
15. Which statement is falseregarding the government-wide Statement of Net Assets?
A) The purpose of the Statement of Net Assets is to report theeconomic resources of the government as a whole
B) Assets are reported excluding capital assets
C) Capital assets are reported net of depreciation
D) Investments are reported at fair value rather than historicalcost
E) Business-type activities include Enterprise Funds
16. Which statement is falseregarding the Balance Sheet for Fund-Based Statements?
A) The Balance Sheet for Fund-Based Statements measures onlycurrent financial resources of the governmental entity
B) The Balance Sheet for Fund-Based Statements uses the modifiedaccrual method for timing purposes
C) Capital assets are not reported on the Balance Sheet forFund-Based Statements
D) The Balance Sheet for Fund-Based Statements measures onlylong-term financial resources of the governmental entity
E) Long-term debts are not reported on the Balance Sheet forFund-Based Statements
17. The city operates a publicpool where each person is assessed a $2 entrance fee. Which fund ismost appropriate to record these revenues?
A) General Fund
B) Enterprise Fund
C) Special Revenue Fund
D) Internal Service Fund
E) Capital Projects Fund
18. Which of the following typesof health care organizations follow FASB Accounting StandardsCodification for GAAP?
Investor-Owned Health Care Enterprises | Not-for-Profit Organizations | Governmental Health Care Organizations | |
A) | Yes | Yes | No |
B) | Yes | Yes | Yes |
C) | No | No | Yes |
D) | Yes | No | Yes |
E) | Yes | No | No |
A) Entry A
B) Entry B
C) Entry C
D) Entry D
E) Entry E
19. In accruing patient chargesfor the current month, which one of the following accounts should ahospital credit?
A) Accounts Payable
B) Deferred Revenue
C) Unearned Revenue
D) Patient Service Revenues
E) Accounts Receivable
20. Which account would becredited in recording a gift of medicine to a nursing home from anoutside party?
A) Nonoperating Gain - Contributions
B) Contractual Adjustments
C) Patient Service Revenues
D) Drugs and Medicines
E) Nonoperating Revenues - Contribution
21. Unconditional transfers ofcash or other resources to an entity in a voluntary nonreciprocaltransaction is the GAAP definition for
A) miscellaneous revenues
B) contributions
C) unconditional promises to give
D) exchange transactions
E) pledges
22. On a statement of functionalexpenses for a voluntary health and welfare organization, how areexpenses classified?
A) Health services expenses and operating expenses
B) Program services expenses and administrative servicesexpenses
C) Program services expenses and supporting services expenses
D) Operating expenses and supporting services expenses
E) Operating expenses and administrative expenses
