Government and Nonprofit Financial Reporting Practice
Exam
Course Introduction
This course explores the principles, standards, and practices of financial reporting for governmental and nonprofit organizations. Students will learn to interpret and prepare financial statements in accordance with Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) requirements. The course covers key topics such as fund accounting, budgetary control, financial statement analysis, and compliance with regulatory and ethical frameworks. Emphasis is placed on understanding the unique financial reporting environment of public and nonprofit sectors and the accountability requirements for stewardship of public and donor funds.
Recommended Textbook
Introduction to Governmental and Not for Profit Accounting 7th Edition by Patton
Available Study Resources on Quizplus
15 Chapters
538 Verified Questions
538 Flashcards
Source URL: https://quizplus.com/study-set/3884
Page 2
Chapter 1: Governmental and Not-For-Profit
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/77373
Sample Questions
Q1) To what extent do organizations that use fund accounting also report on the entity as a whole?
A)Organizations that use fund accounting are not required to report on the entity as a whole
B)Organizations that choose to report on the entity as a whole are not permitted to use fund accounting for internal purposes
C)Organizations that use fund accounting are required to report on the entity as a whole
D)Organizations that use fund accounting have the option of reporting either on funds or on the organization as a whole
Answer: C
Q2) Not-for-profit organizations obtain their revenues primarily from A)Sales to customers
B)Contributions from donors
C)Taxes on personal property
D)Taxes on real property
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: The Use of Funds in Governmental Accounting
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/77372
Sample Questions
Q1) A long-term loan from the General Fund to another fund is reported in the General Fund as:
A)due from other fund
B)due to other fund
C)advance to other fund
D)advance from other fund
Answer: C
Q2) Which of the following financial statements would be prepared for enterprise funds?
A)a statement of net position
B)a statement of cash flows
C)a statement of revenues,expenses,and changes in net position
D)All of the above would be prepared.
E)Only a and c would be prepared.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Budgetary Considerations in Governmental Accounting
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/77371
Sample Questions
Q1) The legal level of budgetary control is best described as
A)the maximum amount that can be spent without incurring an unfavorable variance
B)the classification or subclassification at which expenditures cannot exceed appropriations
C)the status of the budget officer within the hierarchy of top government officials
D)the sum of favorable budget variances minus the sum of unfavorable budget variances
Answer: B
Q2) A property tax millage rate is calculated by:
A)dividing the required tax levy by the total assessed value of property
B)multiplying the required tax levy by the total assessed value of property
C)dividing the required tax levy by the net assessed value of property
D)multiplying the required tax levy by the net assessed value of property
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Governmental Fund Accounting Cycle
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77370
Sample Questions
Q1) Which of the following is not required to be prepared for the General Fund according to GASB standards?
A)budgetary comparison statement or schedule
B)statement of revenues,expenditures,and changes in fund balance
C)balance sheet
D)all of the above are required
Q2) At year-end,a city's expenditures exceed its revenues.When the accounts are closed,which of the following entries will be made to record this fact?
A)a credit to fund balance
B)a debit to fund balance
C)a credit to Appropriations
D)a debit to Budgetary fund balance
Q3) A county borrows cash on a short-term basis.Which of the following account could be credited in this transaction?
A)tax anticipation notes payable
B)revenues from borrowing
C)appropriations--borrowed money
D)assigned fund balance
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: The Governmental Fund Accounting Cycle
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/77369
Sample Questions
Q1) Which of the following describes the proper accounting procedure for supplies in the General Fund?
A)Supplies may be accounted for as expenditures either when purchased or when consumed.In either case,material amounts of inventory are shown on the balance sheet
B)Supplies must be accounted for as expenditures when purchased.Therefore,inventories are not shown on the balance sheet
C)Supplies must be initially recorded as assets,and then charged off as expenditures as the supplies are consumed
D)Supplies may be accounted for as expenditures either when purchased or when consumed.If the purchases method is used,inventories are not shown on the balance sheet.
Q2) For the general fund,the residual fund balance classification is:
A)unassigned fund balance
B)assigned fund balance
C)committed fund balance
D)restricted fund balance
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Governmental Fund Accounting Cycle
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/77368
Sample Questions
Q1) Based on the preceding set of facts,how much should be reported as Other financing sources in the Capital Projects Fund?
A)$1,000,000
B)$3,000,000
C)$8,000,000
D)$10,000,000
Q2) A city keeps its books on a calendar year basis.On April 1,2013,the city sold $500,000 of 6% general obligation bonds,payable in semi-annual installments.The first installment,due October 31,2013 covered interest of $15,000 and principal of $25,000.For the year ended December 31,2013,how much should the Debt Service Fund report as expenditures?
A)$15,000
B)$40,000
C)$15,000,plus an accrual for three months' interest
D)$40,000,plus an accrual for three months' interest and principal
Q3) Which of the following fund types is most likely to have the shortest "life"?
A)internal service
B)capital projects
C)enterprise
D)special revenue
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Governmental Accounting Cycle
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/77367
Sample Questions
Q1) A city's General Fund makes a contribution of $800,000 to an Internal Service Fund (ISF)so that the ISF can operate.How should the ISF report the contribution?
A)as operating revenue
B)as nonoperating revenue
C)as a transfer after operating income but before change in net position
D)as a direct addition to fund net position
Q2) In Proprietary Fund accounting,which of the following statements are true?
A)materials and supplies are recognized as expenditures when purchased
B)materials and supplies are recognized as expenses when consumed
C)capital assets are considered as expenditures when they are acquired
D)capital assets are not recorded in proprietary funds
Q3) Which of the following accounts properly would not appear in the operating statement of a proprietary-type fund?
A)transfer in from the general fund
B)depreciation expense
C)expenditures--capital outlay
D)revenues--charges for services
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: The Governmental Fund Accounting
Cycle--Fiduciary Funds
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/77366
Sample Questions
Q1) Which financial statements are prepared for an Agency Fund?
A)only a statement of fiduciary net position
B)only a statement of changes in fiduciary net position
C)a statement of fiduciary net position and a statement of changes in fiduciary net position
D)a statement of fiduciary net position,a statement of changes in fiduciary net position,and a cash flow statement
Q2) Empire State collects personal income taxes both for its own activities and for cities in the state that have elected to "piggy-back" their own income taxes on top of the state taxes.As a fiduciary,the state temporarily invests all tax receipts pending determination of amounts to remit to the cities.The total investment income received by the state is $300,000,of which $100,000 will be sent to the cities.How much of the investment income should be recognized as revenue in the state's Agency Fund?
A)$0
B)$100,000
C)$200,000
D)$300,000
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Reporting Principles and Preparation of Fund
Financial Statements
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/77365
Sample Questions
Q1) What is the general rule regarding the reporting of special items in fund-level financial statements?
A)They should be displayed separately in the operating statements prepared for governmental and proprietary funds.
B)They should be reported as part of expenditures or expenses in operating statements.
C)They should be displayed as separate items in proprietary fund operating statements,but not in governmental fund operating statements.
D)They should be included as part of revenues in fund operating statements.
Q2) Which information must be presented in budgetary comparison schedules?
A)only the original appropriated budget
B)only the final appropriated budget
C)both the original appropriated budget and the final appropriated budget
D)both the original budget submitted by the chief executive officer and the first budget approved by the legislative body
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Government-Wide Financial Statements
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77364
Sample Questions
Q1) How should bonds payable be reported on government-wide financial statements?
A)Bonds payable should be reported as an offset to capital assets in the assets section of the statement of net position
B)Bonds payable should not be reported on the government-wide financial statements
C)Bonds payable should be separated between amounts due to be paid in one year and amounts due to be paid in more than one year
D)Bonds payable should be reported in the net position section of the statement of net position
Q2) A city health department charges fees for copies of birth certificates provided to its citizens.How should those fees be reported in the government-wide statement of activities?
A)as a separate item of revenue in the revenue section
B)as a direct reduction of the expenses of the health department
C)as an element of program revenues,which reduce gross expenses of the health department
D)as a special item
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Federal Government Accounting and Reporting
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/77363
Sample Questions
Q1) Which of the following is the correct sequence of activities within the federal budgetary accounting cycle?
A)appropriation,apportionment,allotment,obligation
B)obligation,allotment,apportionment,appropriation
C)allotment,obligation,appropriation,apportionment
D)apportionment,allotment,obligation,appropriation
Q2) What is the federal counterpart of the state and local government "encumbrance"?
A)obligation
B)allotment
C)outlay
D)apportionment
Q3) What is the name of the entity that recommends accounting standards for the federal government?
A)the Governmental Accounting Standards Board
B)the Federal Accounting Standards Advisory Board
C)the Financial Accounting Standards Board
D)the American Institute of Certified Public Accountants
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Accounting for Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/77362
Sample Questions
Q1) A not-for-profit secondary school sends a 8-page brochure to the parents and alumni of the school.The brochure describes the school's programs and discusses the achievements of some of its graduates.Five pages list the names of all contributors during the previous year and the last page contains an appeal for funds.How should the organization report the expense of printing and mailing the brochure?
A)All costs should be reported as program expenses.
B)All costs should be reported as fund-raising expenses.
C)The costs should be allocated between program and fund-raising expenses,using appropriate cost accounting techniques.
D)All costs should be reported under a single caption "Program and fund-raising expenses."
Q2) For not-for-profit entities,external financial reporting focuses on:
A)individual funds
B)fund groups
C)the organization as a whole
D)major funds
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Accounting for Health Care Organizations
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77361
Sample Questions
Q1) A governmental hospital has about 30 outstanding medical malpractice claims when it prepares its 2012 financial statements.It does not carry third-party insurance.The total amount claimed on these claims is $2,000,000.Historically,most of these claims are settled out-of-court for about 20 percent of the amount claimed.Some of claims were filed before 2012 and some were filed in 2012.It takes an average of three years to settle them.What is the appropriate method of handling this situation on the financial statements?
A)do not report anything either on the face or in the notes to the statements
B)do not report anything on the face of the statements;but in the notes,state that claims were received,insurance is not carried,and it takes about three years to settle claims;say nothing about the amount of the claims or the potential loss
C)develop a best estimate of the probable loss (about $400,000),based on past experience,and report a liability for that amount on the balance sheet
D)report a liability of $2,000,000 on the balance sheet;and state in the notes that the liability may be lower if the hospital is successful in defending itself
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Analysis of Financial Statements and Financial Condition
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/77360
Sample Questions
Q1) At December 31,2013,Yorktown's pension fund had net assets available for benefits of $12 million.Its actuarial accrued liability at that time was $16 million.For the year ended December 31,2013,its pension fund had paid $3 million in pension benefits.Yorktown's salaries for the year were $18 million.What was Yorktown's funded ratio?
A)67%
B)75%
C)89%
D)400%
Q2) Why do financial analysts prepare common size financial statements?
A)it is easier to work with financial statements when they are all in the same format
B)they help the analyst identify changes over time in the proportion that each item of expense bears to the entity's total expenses
C)they are a necessary first step in allowing the analyst to develop per capita information
D)they show the dollar amount of change from one year to another for each item of expense,both for the entity studied and the reference group.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Fundamentals of Accounting
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/77359
Sample Questions
Q1) Which of the following accounts is increased with debits?
A)assets and liabilities
B)liabilities and equity
C)assets and expenses
D)liabilities and expenses
Q2) Herman Appliance buys and sells refrigerators.Herman starts the year with an inventory of $20,000.During the year,Herman buys refrigerators totaling $182,000.At year-end,Herman takes inventory and finds that he has $28,000 of refrigerators on hand.During the year,Herman's sales revenue was $256,000.What was Herman's gross profit on the sales for the year?
A)$54,000
B)$66,000
C)$74,000
D)$82,000
Q3) Why would the accrual basis of accounting be preferable to the cash basis?
A)it is easier to keep records on the accrual basis than on the cash basis
B)it measures performance by comparing inflows and outflows of cash
C)it ignores the effect of the consumption of assets on the cost of doing business
D)it measures performance by comparing revenues earned with expenses incurred.
To view all questions and flashcards with answers, click on the resource link above.
Page 17