Accounting Online Program Governmental and Nonprofit Accounting 3

Question 1

The Management's Discussion and Analysis (MD&A) section in a government ACFR is classified as:

Accepted Answer

Required supplementary information

Answer

A basic financial statement

Answer

A note to the financial statements

Answer

A statistical section supplement

Question 2

Which GASB statement requires government employers to recognize a net pension liability on the face of their government-wide financial statements?

Accepted Answer

GASB 68

Answer

GASB 34

Answer

GASB 54

Answer

GASB 87

Question 3

The Statement of Financial Position for a nonprofit organization presents:

Accepted Answer

Total assets, liabilities, and net assets classified by donor restrictions

Answer

Revenues, expenses, and changes in net assets

Answer

Cash inflows and outflows from operating, investing, and financing activities

Answer

Expenses allocated by program and supporting service functions

Question 4

Which measurement focus do proprietary funds use under GASB standards?

Accepted Answer

Economic resources

Answer

Current financial resources

Answer

Budgetary resources

Answer

Modified financial resources

Question 5

When does a nonprofit organization recognize revenue from a conditional contribution?

Accepted Answer

When the conditions specified by the donor are substantially met

Answer

When the contribution is initially promised by the donor

Answer

When the cash or assets are physically received

Answer

At the end of the fiscal year in which the promise is made

Question 6

Which of the following is NOT classified as a fiduciary fund type under GASB standards?

Accepted Answer

Capital Projects Fund

Answer

Custodial Fund

Answer

Investment Trust Fund

Answer

Pension Trust Fund

Question 7

Which accounting standard-setting body is responsible for establishing GAAP for U.S. nonprofit organizations?

Accepted Answer

FASB

Answer

GASB

Answer

IASB

Answer

PCAOB