Government Final Exam Practice
Questions and Answers Graded A+
FASAB requires nonexchange revenues to reported on both the accrual and the
cash basis of accounting. - Correct answer-True
All not-for-profit organizations, including city-owned museums and two-year
community colleges, must adhere to FASB accounting and financial reporting
standards. - Correct answer-False
Medicaid is a federally sponsored and managed health care program for retirees. -
Correct answer-False
The AICPA has granted the FASAB exclusive authority to established GAAP for
federal entities. - Correct answer-True
Newly installed computer programs are one indicator that a government's
participation in a federal program may be at high risk of noncompliance. - Correct
answer-True
Federal operations are accounted for in four types of funds. Which of the following
is one of the types of funds used? - Correct answer-Revolving funds
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, The U.S. Postal Service is accounted for in which of the following fund types? -
Correct answer-Revolving fund
In Year 1, the Expert Gardeners Group receives a $60,000 grant to promote its
"Grow-Ur-Own" green vegetables program among Desert City residents. In Year 2,
the group spends the grant funds for the stipulated purpose. - Correct answer-Debit
Cash; Credit Revenue from contributions (restricted fund)
Which of the following is a true statement about the Federal Accounting Standards
Advisory Board? - Correct answer-It is a shared jurisdiction board created
following an agreement by three federal agencies
Hospital revenue usually includes which of the following?
Educational Program--Nonrestricted Gifts - Correct answer-- Yes, No
Financial audits generally are conducted annually. Performance audits generally
are conducted - Correct answer-On an irregular basis
Which of the following groups is responsible for administering the Single Audit
Act? - Correct answer-OMB
Which of the following is NOT true of an attestation engagement? - Correct
answer-It should not be performed if the reliability of the entity's performance
measures is questionable.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers Graded A+
FASAB requires nonexchange revenues to reported on both the accrual and the
cash basis of accounting. - Correct answer-True
All not-for-profit organizations, including city-owned museums and two-year
community colleges, must adhere to FASB accounting and financial reporting
standards. - Correct answer-False
Medicaid is a federally sponsored and managed health care program for retirees. -
Correct answer-False
The AICPA has granted the FASAB exclusive authority to established GAAP for
federal entities. - Correct answer-True
Newly installed computer programs are one indicator that a government's
participation in a federal program may be at high risk of noncompliance. - Correct
answer-True
Federal operations are accounted for in four types of funds. Which of the following
is one of the types of funds used? - Correct answer-Revolving funds
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, The U.S. Postal Service is accounted for in which of the following fund types? -
Correct answer-Revolving fund
In Year 1, the Expert Gardeners Group receives a $60,000 grant to promote its
"Grow-Ur-Own" green vegetables program among Desert City residents. In Year 2,
the group spends the grant funds for the stipulated purpose. - Correct answer-Debit
Cash; Credit Revenue from contributions (restricted fund)
Which of the following is a true statement about the Federal Accounting Standards
Advisory Board? - Correct answer-It is a shared jurisdiction board created
following an agreement by three federal agencies
Hospital revenue usually includes which of the following?
Educational Program--Nonrestricted Gifts - Correct answer-- Yes, No
Financial audits generally are conducted annually. Performance audits generally
are conducted - Correct answer-On an irregular basis
Which of the following groups is responsible for administering the Single Audit
Act? - Correct answer-OMB
Which of the following is NOT true of an attestation engagement? - Correct
answer-It should not be performed if the reliability of the entity's performance
measures is questionable.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
