Accounting Online Program Governmental and Nonprofit Accounting

Question 1

Which standard-setting body establishes GAAP for state and local governments in the United States?

Accepted Answer

GASB

Answer

FASB

Answer

IASB

Answer

AICPA

Question 2

Which fund type is the primary operating fund used to account for most general government activities?

Accepted Answer

General Fund

Answer

Capital Projects Fund

Answer

Debt Service Fund

Answer

Special Revenue Fund

Question 3

What basis of accounting is used for governmental funds under GASB standards?

Accepted Answer

Modified accrual basis

Answer

Full accrual basis

Answer

Cash basis

Answer

Tax basis

Question 4

Under modified accrual accounting, revenues are recognized when they are:

Accepted Answer

Measurable and available

Answer

Earned and realizable

Answer

Received in cash

Answer

Approved in the budget

Question 5

What does ACFR stand for in the context of government financial reporting?

Accepted Answer

Annual Comprehensive Financial Report

Answer

Accredited Certified Financial Record

Answer

Adjusted Combined Fiscal Report

Answer

Authorized Current Finance Record

Question 6

Which financial statement is required for voluntary health and welfare nonprofit organizations and shows expenses by both function and natural classification?

Accepted Answer

Statement of Functional Expenses

Answer

Statement of Financial Position

Answer

Statement of Activities

Answer

Statement of Cash Flows

Question 7

Under ASC 958, nonprofit organizations classify net assets into how many categories?

Accepted Answer

Two

Answer

Three

Answer

Four

Answer

Five