Essay on Accounting for Government
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 …show more content…
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.
17. Since neither governmental nor not-for-profit entities have investors, the financial reporting objectives are the same for both types of entities.
18. The GASB provides optional guidance for those entities providing service efforts and accomplishments (SEA) reports to the public.
19. The Office of Management and Budget (OMB) requires major federal departments and agencies to prepare