Question 1

Although certain supplementary information may not be required,if presented,it must follow GASB guidance regarding its format and content.

Accepted Answer

GASB provides guidance on the format and content of supplementary information that is presented, even if the information is not required. Therefore, if supplementary information is presented, it must follow GASB's guidance.

Question 2

The Financial Accounting Standards Board sets financial reporting standards for private not-for-profits and investor-owned businesses.

Accepted Answer

Accounting and financial reporting standards for profit-seeking businesses and for nongovernmental not-for-profit organizations are set by the FASB.

Question 3

All Governments must have as many funds as necessary to fulfill legal requirements and sound financial administration but must have at a minimum a General Fund.

Accepted Answer

All governments must have a General Fund at a minimum for financial administration, but may also have additional funds as necessary for legal requirements and other purposes.

Question 4

The GASB requires supplementary information to be reported with its financial statements if it is essential to establish appropriate context for the financial statements and notes.

Accepted Answer

The GASB does require supplementary information to be reported if it is essential to establish appropriate context for the financial statements and notes.

Question 5

FASAB,GASB and FASB standards are set forth primarily in documents called statements.

Accepted Answer

FASAB, GASB, and FASB standards are indeed primarily set forth in documents called statements. For example, FASB issues Financial Accounting Standards Updates (FASUs), GASB issues Statements, and FASAB issues Statements of Federal Financial Accounting Concepts and Standards.

Question 6

The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.

Accepted Answer

FASAB requires more financial statements than are typically required of state and local governments, public and private not-for-profits and investor-owned businesses.

Question 7

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Accepted Answer

The Federal Accounting Standards Advisory Board (FASAB) and the Governmental Accounting Standards Board (GASB) are separate entities; GASB is under the oversight of the Financial Accounting Foundation, while FASAB is not.

Question 8

The Financial Accounting Standards Board sets financial reporting standards for private sector organizations,except nongovernmental,not-for-profit organizations.

Accepted Answer

The answer of The Financial Accounting Standards Board sets financial...

Question 9

The FASAB requires more financial statements than are typically required of state and local governments.

Accepted Answer

The Federal Accounting Standards Advisory Board (FASAB) requires more financial statements, disclosures, and notes than are typically required of state and local governments. This includes the Statement of Net Cost, Statement of Changes in Net Position, and Statement of Budgetary Resources, among others.

Question 10

An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes.

Accepted Answer

An organization is considered governmental if it has the authority to issue tax-exempt debt directly.

Question 11

The Governmental Accounting Standards Board considers the financial reporting entity to include the primary government and its component units.

Accepted Answer

This statement is true. The GASB defines the financial reporting entity as the primary government and any organizations that are financially dependent on, or in which the primary government has a controlling financial interest. These organizations are called component units.

Question 12

The format and content of supplementary information which is not required by GASB is up to the discretion of the reporting entity.

Accepted Answer

GASB Concepts Statement #3 defines methods of presenting information in financial reports including supplementary information that is not required by GASB.

Question 13

One objective of the Governmental Accounting Standards Board is to help users determine compliance with finance-related laws,rules,and regulations.

Accepted Answer

This statement is true. One of the objectives of the GASB is to provide guidance to state and local governments in complying with finance-related laws, rules, and regulations.

Question 14

The GASB Concept Statement on Service Efforts and Accomplishments Reporting requires state and local governments to include inputs of nonmonetary resources in their financial reporting.

Accepted Answer

Occasionally the GASB determines that additional information is necessary to provide context and understanding of information in the statements or notes. In such cases, the GASB requires the presentation of required supplementary information RSI

Question 15

The Governmental Accounting Standards Board sets financial reporting standards for all units of government:
 federal,state,and local.

Accepted Answer

The GASB sets standards for state and local governments but not the federal government. GASB also sets standards for governmentally related not-for-profit organizations, health care entities, museums, libraries, and performing arts organization owned or controlled by governments.

Question 16

FASAB,GASB and FASB standards are set forth primarily in documents called interpretations.

Accepted Answer

FASAB and GASB do issue interpretations, but FASB sets forth its standards primarily in documents called Accounting Standards Updates (ASUs) and Financial Accounting Concepts (FACs).

Question 17

The GASB Concept Statement on Service Efforts and Accomplishments Reporting encourages state and local governments to include inputs of nonmonetary resources in their financial reporting.

Accepted Answer

The GASB Concept Statement on Service Efforts and Accomplishments Reporting does encourage state and local governments to include inputs of nonmonetary resources in their financial reporting.

Question 18

The FASAB was established to recommend accounting and financial reporting standards for governmental and commercial enterprises.

Accepted Answer

The FASAB (Federal Accounting Standards Advisory Board) was established to recommend accounting and financial reporting standards specifically for the U.S. federal government, not for commercial enterprises.

Question 19

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

Accepted Answer

Fund accounting is used primarily to track how resources are used according to legal or donor restrictions. It ensures that funds are allocated and spent in compliance with regulations and agreements.

Question 20

A Management's Discussion and Analysis is required for state and local governmental units,but not the federal government.

Accepted Answer

Management's Discussion and Analysis (MD&A) is a required component of the federal government's financial statements as per the Federal Accounting Standards Advisory Board (FASAB) and its Statement of Federal Financial Accounting Standards (SFFAS) No. 15.

Quiz 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations