Essay on Accounting for Government

6238 Words Feb 7th, 2016 25 Pages
Chapter 01
Introduction to Accounting and Financial Reporting for
Governmental and Not-for-Profit Entities

True / False Questions 1. Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. True False 2. Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. True False 3. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. True False

4. The Governmental Accounting Standards Board (GASB) is the body
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True False 12. The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2) the basic financial statements, including the notes to the financial statements, and (3) combining and individual fund financial statements. True False 13. The Financial Accounting Foundation has oversight over both FASB and GASB. True False 14. In addition to financial statements and notes, GASB requires governments to provide information on service efforts and accomplishments (SEA) in their reports to the public. True False 15. Providing information on accountability is the primary financial reporting objective for both governmental and not-for-profit entities.

True False

16. A difference in the financial reporting objectives for governmental entities and not-for-profit entities is that governmental entities report on compliance with laws, regulations, and rules that impact financial reports.

True False

17. Since neither governmental nor not-for-profit entities have investors, the financial reporting objectives are the same for both types of entities.

True False

18. The GASB provides optional guidance for those entities providing service efforts and accomplishments (SEA) reports to the public.

True False

19. The Office of Management and Budget (OMB) requires major federal departments and agencies to prepare

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