Version 1 1 Student name:__________ 1) Explain the essential differences between general purpose and special purpose governments and give several examples of each. 2) Identify and explain the characteristics that distinguish governments and not -for-profit entities from business entities. 3) GASB and FASB standards are concerned only with external financial reporting; whereas, FASAB standards are concerned with both internal and external financial reporting. Do you agree with this statement? Why or why not? 4) Why should persons interested in reading financial reports of governments and not -for-
profit entities be familiar with standards set by the GASB and the FASB? MEDGEEK Version 1 2 5) Explain in your own words why accountability is the corners tone of all financial reporting in government. 6) In your own words state the primary needs the GASB believes external users have for financial reports of state and local governments. For contrast, state the uses the FASB believes external users have for the financial reports of not -for-profit organizations. 7) Describe the difference between a comprehensive annual financial report (CAFR) and GASB general purpose external financial reporting for state and local governments. 8) Identify and briefly explain the four sections of the performance and accountability report (PAR) that the Office of Management and Budget requires major federal departments and agencies to prepare. MEDGEEK Version 1 3 9) Explain the concepts of fiscal and opera tional accountability and the basis of accounting used to capture each concept. 10) Describe the comprehensive annual financial report (CAFR). What are the sections of the report and which components of the organization should it include? Is a C AFR required? 11) The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for which of the following? A) Governments such as federal agencies, states, cities, counties , villages, and townships. B) State and local government entities and governmentally -related units and agencies, such as utilities, authorities, hospitals, and colleges and universities. C) Not -for-profit organizations. D) State and local governm ents and all not -for-profit organizations. MEDGEEK Version 1 4 12) Which of the following bodies has been established to recommend accounting and financial reporting standards for the federal government? A) Financial Accounting Standards Board (FASB). B) Govern mental Accounting Standards Board (GASB). C) Federal Accounting Foundation (FAF). D) Federal Accounting Standards Advisory Board (FASAB). 13) The Financial Accounting Standards Board has the responsibility for setting accounting and financial re porting standards for which of the following? A) All not -for-profit organizations that are nongovernmental and business entities. B) All not -for-profit organizations and business entities. C) All not -for-profit organizations. D) Special pur pose governments with a business purpose. 14) You are trying to decide if an entity you are reviewing is a government or a not -for-
profit. Which of the following would indicate it is a government rather than a not -for-profit entity? A) Absence o f profit motive. B) A primary source of revenues is taxes. C) Resource providers do not expect benefits proportional to the resources provided. D) Absence of a defined ownership interest that can be sold, transferred, or redeemed. 15) Which of the following is identified by the GASB as the "cornerstone" of all financial reporting in government? A) Decision usefulness. B) Stewardship. C) Accountability. D) Interperiod equity. MEDGEEK
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