Student name:_
1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
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,5) Explain gin gyour gown gwords gwhy gaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave g for g financial greports gof gstate gand g local ggovernments. gFor gcontrast, gstate gthe guses
gthe gFASB gbelieves g external gusers g have g for gthe g financial greports gof gnot-for-profit
g organizations.
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g (CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting g for gstate gand g local
ggovernments.
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountability greport g (PAR) gthat gthe gOffice gof gManagement g and gBudget grequires gmajor
gfederal gdepartments gand g agencies gto g prepare.
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,9) Explain gthe gconcepts gof gfiscal gand goperational gaccountability gand gthe gbasis gof
gaccounting g used gto g capture geach gconcept.
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report g and gwhich gcomponents gof gthe gorganization gshould g it g include? gIs ga gCAFR
grequired?
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
gsetting g accounting gand g financial greporting gstandards gfor gwhich gof gthe g following?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
Version 1 3
, 12) Which gof gthe gfollowing gbodies ghas gbeen gestablished gto grecommend
gaccounting gand g financial greporting gstandards gfor gthe gfederal ggovernment?
A) Financial gAccounting gStandards gBoard g(FASB).
B) Governmental gAccounting gStandards gBoard g(GASB).
C) Federal gAccounting gFoundation g(FAF).
D) Federal gAccounting gStandards gAdvisory gBoard g(FASAB).
13) The gFinancial gAccounting gStandards gBoard ghas gthe gresponsibility gfor gsetting
gaccounting g and g financial greporting gstandards gfor gwhich gof gthe g following?
A) All gnot-for-profit gorganizations gthat gare gnongovernmental gand gbusiness gentities.
B) All gnot-for-profit gorganizations gand gbusiness gentities.
C) All gnot-for-profit gorganizations.
D) Special gpurpose ggovernments gwith ga gbusiness gpurpose.
14) You gare gtrying gto gdecide gif gan gentity gyou gare greviewing gis ga ggovernment gor
ga gnot-for- g profit. gWhich gof gthe g following gwould g indicate g it g is ga ggovernment g rather
gthan ga gnot-for-profit g entity?
A) Absence gof gprofit gmotive.
B) A gprimary gsource gof grevenues gis gtaxes.
C) Resource gproviders gdo gnot gexpect gbenefits gproportional gto gthe gresources
gprovided.
D) Absence gof ga gdefined gownership ginterest gthat gcan gbe gsold, gtransferred, gor
gredeemed.
15) Which gof gthe gfollowing gis gidentified gby gthe gGASB gas gthe g"cornerstone" gof gall
gfinancial g reporting gin ggovernment?
A) Decision gusefulness.
B) Stewardship.
C) Accountability.
D) Interperiod gequity.
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1) Explain the essential differences between general purpose and special purpose
governments and give several examples of each.
2) Identify and explain the characteristics that distinguish governments and not-for-profit
entities from business entities.
3) GASB and FASB standards are concerned only with external financial reporting;
whereas, FASAB standards are concerned with both internal and external financial reporting. Do
you agree with this statement? Why or why not?
4) Why should persons interested in reading financial reports of governments and not-for-
profit entities be familiar with standards set by the GASB and the FASB?
Version 1 1
,5) Explain gin gyour gown gwords gwhy gaccountability gis gthe gcornerstone gof gall
gfinancial g reporting gin ggovernment.
6) In gyour gown gwords gstate gthe gprimary gneeds gthe gGASB gbelieves gexternal gusers
ghave g for g financial greports gof gstate gand g local ggovernments. gFor gcontrast, gstate gthe guses
gthe gFASB gbelieves g external gusers g have g for gthe g financial greports gof gnot-for-profit
g organizations.
7) Describe gthe gdifference gbetween ga gcomprehensive gannual gfinancial greport
g (CAFR) gand g GASB ggeneral gpurpose gexternal gfinancial greporting g for gstate gand g local
ggovernments.
8) Identify gand gbriefly gexplain gthe gfour gsections gof gthe gperformance gand
gaccountability greport g (PAR) gthat gthe gOffice gof gManagement g and gBudget grequires gmajor
gfederal gdepartments gand g agencies gto g prepare.
Version 1 2
,9) Explain gthe gconcepts gof gfiscal gand goperational gaccountability gand gthe gbasis gof
gaccounting g used gto g capture geach gconcept.
10) Describe gthe gcomprehensive gannual gfinancial greport g(CAFR). gWhat gare gthe gsections
gof gthe g report g and gwhich gcomponents gof gthe gorganization gshould g it g include? gIs ga gCAFR
grequired?
11) The gGovernmental gAccounting gStandards gBoard gis gassigned gresponsibility gfor
gsetting g accounting gand g financial greporting gstandards gfor gwhich gof gthe g following?
A) Governments gsuch gas gfederal gagencies, gstates, gcities, gcounties,
gvillages, gand g townships.
B) State gand glocal ggovernment gentities gand ggovernmentally-related gunits gand
gagencies, g such gas gutilities, gauthorities, ghospitals, gand gcolleges gand guniversities.
C) Not-for-profit gorganizations.
D) State gand glocal ggovernments gand gall gnot-for-profit gorganizations.
Version 1 3
, 12) Which gof gthe gfollowing gbodies ghas gbeen gestablished gto grecommend
gaccounting gand g financial greporting gstandards gfor gthe gfederal ggovernment?
A) Financial gAccounting gStandards gBoard g(FASB).
B) Governmental gAccounting gStandards gBoard g(GASB).
C) Federal gAccounting gFoundation g(FAF).
D) Federal gAccounting gStandards gAdvisory gBoard g(FASAB).
13) The gFinancial gAccounting gStandards gBoard ghas gthe gresponsibility gfor gsetting
gaccounting g and g financial greporting gstandards gfor gwhich gof gthe g following?
A) All gnot-for-profit gorganizations gthat gare gnongovernmental gand gbusiness gentities.
B) All gnot-for-profit gorganizations gand gbusiness gentities.
C) All gnot-for-profit gorganizations.
D) Special gpurpose ggovernments gwith ga gbusiness gpurpose.
14) You gare gtrying gto gdecide gif gan gentity gyou gare greviewing gis ga ggovernment gor
ga gnot-for- g profit. gWhich gof gthe g following gwould g indicate g it g is ga ggovernment g rather
gthan ga gnot-for-profit g entity?
A) Absence gof gprofit gmotive.
B) A gprimary gsource gof grevenues gis gtaxes.
C) Resource gproviders gdo gnot gexpect gbenefits gproportional gto gthe gresources
gprovided.
D) Absence gof ga gdefined gownership ginterest gthat gcan gbe gsold, gtransferred, gor
gredeemed.
15) Which gof gthe gfollowing gis gidentified gby gthe gGASB gas gthe g"cornerstone" gof gall
gfinancial g reporting gin ggovernment?
A) Decision gusefulness.
B) Stewardship.
C) Accountability.
D) Interperiod gequity.
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