Paul Copley Test - Paul Copley (Test Bank All Answers at the end o...

Essentials of Accounting for Governmental and Not-for-Profit Organizations, 14e By Paul Copley (Test Bank All Answers at the end of each chapter)

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Version 1 1 Chapter 1_ Introduction to Accounting and Financial Reporting for Governmental TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.1) The Governmental Accounting Standards Board sets financial reporting standards for all

units of government: federal, state, and local.

⊚ true ⊚ false

2) Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.⊚ true ⊚ false

3) The Financial Accounting Standards Board sets financial reporting standards for profit- seeking businesses and nongovernmental, not-for-profit organizations.⊚ true ⊚ false

4) FASAB, GASB and FASB standards are set forth primarily in documents called statements.⊚ true ⊚ false

5) FASAB, GASB and FASB standards are set forth primarily in documents called concept statements.⊚ true ⊚ false

6) The FASAB was established to recommend accounting and financial reporting standards for the federal government.⊚ true ⊚ false 2 / 4

Version 1 2

7) The GASB does not require supplementary information to be reported with its financial statements even if it is essential to establish appropriate context for the financial statements and notes.⊚ true ⊚ false

8) The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.⊚ true ⊚ false

9) An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes.⊚ true ⊚ false

10) The Financial Accounting Standards Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.⊚ true ⊚ false

11) The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.⊚ true ⊚ false

12) The FASAB requires more financial statements than are typically required of state and local governments. 3 / 4

Version 1 3 ⊚ true ⊚ false

13) The only objective of the Governmental Accounting Standards Board is to help users determine compliance with finance-related laws, rules, and regulations.⊚ true ⊚ false

14) Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.⊚ true ⊚ false

15) A Management's Discussion and Analysis is required for state and local governmental units, and the federal government.⊚ true ⊚ false

16) The GASB Concept Statement on Service Efforts and Accomplishments Reporting encourages state and local governments to include inputs of nonmonetary resources in their financial reporting.⊚ true ⊚ false

17) Although certain supplementary information may not be required, if presented, it must follow GASB guidance regarding its format and content.⊚ true ⊚ false

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