Test Bank for Government And Not For Profit Accounting Concepts And Practices 9th Edition Michael H. Granof Answers are at the End of Each Chapter Chapter 1 The Government and Not-For-Profit Environment
TRUE/FALSE (CHAPTER 1) 1.
The main objective of a typical government or not-for-profit entity is to earn a profit.
2.
A government‘s budget may be backed by the force of law.
3.
Governments have no need for an accounting system.
4.
A government‘s internal managers rely on general purpose financial statements for a considerable amount of information about their government.
5.
Governments and not-for-profit entities may never engage in business-type activities.
6.
Lenders use the financial statements of governments and not-for-profit entities just as they would those of businesses, that is, to help assess the borrower‘s credit-worthiness.
7.
Financial statements, no matter how prepared, do not directly affect the economic worth of an entity.
8.
The Federal Accounting Standards Advisory Board‘s standards do not apply to the federal Department of the Treasury.
9.
Governments may be subject to the same pressures that led to accounting scandals like Enron.
10. The Governmental Accounting Standards Board establishes generally accepted accounting principles for all state and local governments and all not-for-profit entities.
Granof Test Bank Chapter 1
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