Help Articles
WGU D250PRE-ASSESSMENT: GOVERNMENTAL
AND NONPROFIT ACCOUNTING (PMQC)
Attempt #2
Status: Passed
1. Who does the GASB set accounting and financial reporting standards for?
YOUR CORRECT
ANSWER ANSWER
Governments such as federal agencies, states, cities, counties, villages, and
townships
Nonprofit organizations
State and local government entities and governmentally related units and
agencies
State and local governments and all nonprofit organizations
2. Why is the traditional business model of accounting inadequate for governments and nonprofit organizations
(NPOs)?
YOUR CORRECT
ANSWER ANSWER
Governments and NPOs have different missions than businesses do.
Governments and NPOs have fewer assets than businesses do.
Businesses have intangible assets and governments and NPOs do not.
Taxes are a major expenditure of businesses but not for governments and
NPOs.
3. Which fiscal practice promotes the concept of interperiod equity?
YOUR CORRECT
ANSWER ANSWER
Paying the pensions of retired employees out of current operating funds
Paying the current-year costs of an administrative staff out of current
operating funds
Issuing 30-year bonds to finance the current-year operating costs of an
administrative staff
,Charging wages and salaries applicable to services provided in the last
week of the current fiscal year to the following fiscal year
Accessibility Policy Accessibility Settings
, 4. Which accounting equation represents a governmental organization?
YOUR CORRECT
ANSWER ANSWER
Fund balance = assets + deferred outflows − liabilities − deferred inflows
Assets = liabilities + owners' equity
Fund balance = assets + deferred outflows
Fund balance = assets − liabilities − deferred inflows
5. Which term describes the government and not-for-profit equivalent of the term owners' equity?
YOUR CORRECT
ANSWER ANSWER
Fund balance
Net profit
Inflow of resources
Total assets
6. Which functions should be accounted for in an internal service fund?
YOUR CORRECT
ANSWER ANSWER
Hospitals and medical facilities
A motor pool that acts as an intragovernment rental car agency
Convention and entertainment facilities
Parking lots and garages
7. Which basis of accounting determines what assets and liabilities will be given accounting recognition and be
reported on the balance sheet?
YOUR CORRECT
ANSWER ANSWER
Basis of accounting
Nonspendable
Measurement focus
Assigned fund balance
WGU D250PRE-ASSESSMENT: GOVERNMENTAL
AND NONPROFIT ACCOUNTING (PMQC)
Attempt #2
Status: Passed
1. Who does the GASB set accounting and financial reporting standards for?
YOUR CORRECT
ANSWER ANSWER
Governments such as federal agencies, states, cities, counties, villages, and
townships
Nonprofit organizations
State and local government entities and governmentally related units and
agencies
State and local governments and all nonprofit organizations
2. Why is the traditional business model of accounting inadequate for governments and nonprofit organizations
(NPOs)?
YOUR CORRECT
ANSWER ANSWER
Governments and NPOs have different missions than businesses do.
Governments and NPOs have fewer assets than businesses do.
Businesses have intangible assets and governments and NPOs do not.
Taxes are a major expenditure of businesses but not for governments and
NPOs.
3. Which fiscal practice promotes the concept of interperiod equity?
YOUR CORRECT
ANSWER ANSWER
Paying the pensions of retired employees out of current operating funds
Paying the current-year costs of an administrative staff out of current
operating funds
Issuing 30-year bonds to finance the current-year operating costs of an
administrative staff
,Charging wages and salaries applicable to services provided in the last
week of the current fiscal year to the following fiscal year
Accessibility Policy Accessibility Settings
, 4. Which accounting equation represents a governmental organization?
YOUR CORRECT
ANSWER ANSWER
Fund balance = assets + deferred outflows − liabilities − deferred inflows
Assets = liabilities + owners' equity
Fund balance = assets + deferred outflows
Fund balance = assets − liabilities − deferred inflows
5. Which term describes the government and not-for-profit equivalent of the term owners' equity?
YOUR CORRECT
ANSWER ANSWER
Fund balance
Net profit
Inflow of resources
Total assets
6. Which functions should be accounted for in an internal service fund?
YOUR CORRECT
ANSWER ANSWER
Hospitals and medical facilities
A motor pool that acts as an intragovernment rental car agency
Convention and entertainment facilities
Parking lots and garages
7. Which basis of accounting determines what assets and liabilities will be given accounting recognition and be
reported on the balance sheet?
YOUR CORRECT
ANSWER ANSWER
Basis of accounting
Nonspendable
Measurement focus
Assigned fund balance
