Exam (elaborations)
FUND ACCOUNTING
- Course
- Institution
A text bank document for a fund accounting summary typically serves as a comprehensive overview of financial activities related to specific funds
[Show more]
Seller
Follow
Content preview
TEST BANKFOR
INTRODUCTION TO FUND
ACCOUNTING 4TH EDITION
NORVELLE
, Chapterh1
ThehGovernmenthandhNot-For-ProfithEnvironment
TRUE/FALSEh(CHAPTERh1)
1. FhThehmainhobjectivehofhahtypicalhgovernmentalhorhnot-for-profithentityhishtohearnhahprofit.
2. TAhgovernment’shbudgethmayhbehbackedhbyhthehforcehofhlaw.
3. FGovernmentalhentitieshhavehnohneedhforhanhaccountinghsystem.
4. TAhgovernment’shinternalhmanagershrelyhonhgeneralhpurposehfinancialhstatementshf
orhahconsiderablehamounthofhinformationhabouththeirhgovernment.
5. FGovernmentshandhnot-for-profitshmayhneverhengagehinhbusiness-typehactivities.
6. TLendershusehthehfinancialhstatementshofhgovernmentshandhnot-
forhprofitshjusthashtheyhwouldhthosehofhbusinesses,hthathis,htohhelphassesshthehborrower’shc
redit-worthiness.
7. TFinancialhstatements,hnohmatterhhowhprepared,hdohnothdirectlyhaffecththeheconomichwort
hhofhanhentity.
8. FThehFinancialhAccountinghStandardshAdvisoryhBoard’shstandardshdohnothapplyhtoh
thehfederalhDepartmenthofhTreasury.
9. TGovernmentshmayhbehsubjecthtohthehsamehpressureshthathledhtohaccountinghscandalsh
likehEnron.
10. FThehGovernmentalhAccountinghStandardshBoardhestablisheshgenerallyhacceptedhaccounti
nghprincipleshforhallhstatehandhlocalhgovernmenthentities,hashwellhashallhnot-for-
profithentities.
MULTIPLEhCHOICEh(CHAPTERh1)
1. Ahprimaryhcharacteristichthathdistinguisheshgovernmentalhentitieshfromhbusinesshentitieshis
a) Thehneedhtohgeneratehrevenueshequalhtohorhinhexcesshofhexpenditures/expenses.
b) Thehimportancehofhthehbudgethinhthehgoverninghprocess.
c) Thehneedhtohprovidehgoodshorhservices.
d) Thehcorrelationhbetweenhrevenueshgeneratedhandhdemandhforhgoodshorhservices.
2. Ahprimaryhcharacteristichthathdistinguisheshnot-for-profithentitieshfromhbusinesshentitieshis
a) Thehneedhtohgeneratehrevenueshequalhtohorhinhexcesshofhexpenditures/expenses.
b) Thehimportancehofhthehbudgethinhthehgoverninghprocess.
c) Thehneedhtohprovidehgoodshorhservices.
d) Thehcorrelationhbetweenhrevenueshgeneratedhandhdemandhforhgoodshorhservices.
GranofhTesthBankhChapterh1 Pageh1
,3. Whichhofhthehfollowinghcharacteristicshdistinguisheshahgovernmentalhorhnot-for-
profithentityhfromhahbusinesshentity?
a) Therehishalwayshahdirecthlinkhbetweenhrevenueshgeneratedha
ndhexpenditures/expenseshincurred.
b) Capitalhassetsharehusedhtohproducehrevenueshandhsavehcosts.
c) Revenuesharehalwayshindicativehofhdemandhforhgoodshandhservices.
d) Thehmissionhofhthehentityhwillhdeterminehthehgoodshorhserviceshprovided.
4. Thehmosthsignificanthfinancialhdocumenthprovidedhbyhahgovernmentalhentityhishthe
a) Thehbalancehsheet.
b) Thehoperatinghstatement.
c) Thehoperatinghbudget.
d) Thehcashhflowhstatement.
5. Whichhofhthehfollowinghstatementshishtrue?
a) Governmentshmayhengagehinhactivitieshsimilarhtohactivitieshengagedhinhbyhforpr
ofithentities.
b) Thereharehahlimitedhnumberhofhdifferenthtypeshofhgovernments.
c) Allhgovernmentalhentitieshengagehinhthehsamehactivities.
d) Managershmayhhavehahlong-termhfocushandhtherebyhsacrificehthehshort-
termhliquidityhofhthehentity.
6. WhichhofhthehfollowinghactivitieshishNOThanhactivityhinhwhichhahgovernmentalhentityhm
ighthengage?
a) Sellinghelectrichpower.
b) Operatinghahgolfhcourse.
c) Operatinghahbookstore.
d) Allhofhthehaboveharehactivitieshthathmighthbehcarriedhouthbyhahgovernment.
7. Inhwhichhofhthehfollowinghactivitieshishahnot-for-profithentityhleasthlikelyhtohengage?
a) Providingheducationalhservices.
b) Providinghhealth-carehservices.
c) Providinghforhterrorismhdefense.
d) Retailhsaleshofhcookies.
8. WhichhofhthehfollowinghcanhbehaffectedhbyhGAAP?
a) Legalhabilityhtohissuehbonds.
b) Abilityhtohbalancehthehbudget.
c) Amounthreportedhashemployeehpensionhplanhcontributions.
d) Claimshandhjudgmentshsettled.
9. Whichhofhthehfollowinghcharacteristicshishuniquehtohahgovernmentalhentity?
a) Thehabilityhtohhavehactivitieshfinancedhwithhtax-exempthdebt.
b) Thehpowerhtohimposehfees.
c) Thehabilityhtohissuehtax-exempthdebt.
d) ThehabilityhtohhavehactivitieshfinancedhbyhFederalhgrants.
GranofhTesthBankhChapterh1 Pageh2
, 10. Tohobtainhahcomprehensivehunderstandinghofhahgovernment’shfiscalhhealth,hahfinancialhana
lysthshouldhobtainhanhunderstandinghofhwhichhofhthehfollowing?
a) Allhofhthehresourceshownedhbyhthehgovernmentalhentity.
b) Allhofhthehresourceshwhichhmayhbehsummonedhbyhahgovernmentalhentity.
c) Demographichdatahabouththehresidentshservedhbyhthehgovernmentalhentity.
d) Allhofhthehabove.
11. Whichhofhthehfollowinghishcommonhtohbothhgovernmentshandhnot-for-
profithentitieshbuthdistinguisheshthesehentitieshfromhfor-profithentities?
a) Thehbudgethishahlegal,hfinancialhdocument.
b) Revenuesharehusuallyhindicativehofhdemandhforhgoodshorhservices.
c) Therehishdirecthmatchinghofhrevenueshandhexpenses.
d) Thereharehnohdefinedhownershiphinterests.
12. WhichhofhthehfollowinghishNOThahpurposehofhexternalhfinancialhreportinghbyhgovernments?
Externalhfinancialhreportshshouldhallowhusershto
a) Assesshfinancialhcondition.
b) Comparehactualhresultshwithhthehbudget.
c) Assesshthehabilityhofhelectedhofficialshtoheffectivelyhmanagehpeople.
d) Evaluatehefficiencyhandheffectiveness.
13. WhichhofhthehfollowinghishNOThahreasonhwhyhusershneedhgovernmentalhandhnot-for-
profithexternalhfinancialhstatements?
a) Tohdeterminehthehabilityhofhthehentityhtohmeethitshobligations.
b) Tohdeterminehthehabilityhofhthehentityhtohcontinuehtohprovidehservices.
c) Tohpredicthfuturehfiscalhsolvency.
d) Tohevaluatehthehoverallhprofitabilityhofhthehentity.
14. Usershofhgovernmenthfinancialhstatementshshouldhbehinterestedhinhinformationhab
outhcompliancehwithhlawshandhregulationshforhwhichhofhthehfollowinghreasons?
a) Tohdeterminehifhthehentityhhashcompliedhwithhbondhcovenants.
b) Tohdeterminehifhthehentityhhashcompliedhwithhtaxinghlimitations.
c) Tohdeterminehifhthehentityhhashcompliedhwithhdonorhrestrictionshonhthehusehofhfunds.
d) Tohdeterminehallhofhthehabove.
15. WhichhofhthehfollowinghishNOThgenerallyhconsideredhahmainhuserhofhgovernmenthandh
not-hforprofithentityhexternalhfinancialhstatements?
a) Investorshandhcreditors.
b) Taxpayers.
c) Donors.
d) Internalhmanagers.
16. Whichhofhthehfollowinghishahprobablehusehahdonorhwouldhmakehofhthehexternalhfina
ncialhstatementshofhahnot-for-profithentity?
a) Tohdeterminehthehproportionhofhentityhresourceshdirectedhtohprogramshashoppo
sedhtohfund-raising.
b) Tohdeterminehthehcreditworthinesshofhthehentityhforhinvestmenthpurposes.
GranofhTesthBankhChapterh1 Pageh3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Amasters. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now