AC548+PRACTICE+TEST+1

AC548+PRACTICE+TEST+1 - AC548 PRACTICE TEST 1 Student: _ 1....

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Student: ___________________________________________________________________________ 1. The Governmental Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for A. State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities. B. Governments; such as federal agencies, states, cities, counties, villages, and townships. C. Not-for-profit organizations. D. All of the above. 2. The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for A. All federal and state organizations. B. All not-for-profit organizations that are nongovernmental and business entities. C. All not-for-profit organizations. D. Both B) and C) are correct. 3. The body that has been established to recommend accounting and financial reporting standards for the federal government is the A. Financial Accounting Standards Board (FASB). B. Governmental Accounting Standards Board (GASB). C. Cost Accounting Standards Board (CASB). D. Federal Accounting Standards Advisory Board (FASAB). 4. The GASB has identified which of the following as the "cornerstone" of all financial reporting in government? A. Understandability. B. Representational faithfulness. C. Accountability. D. Interperiod equity. 5. Which of the following distinguishes governments from nongovernmental not-for-profit organizations? A. Absence of profit motive. B. The power to enact and enforce a tax levy. C. Resource providers do not expect benefits proportional to the resources provided. D. Absence of a defined ownership interest that can be sold, transferred, or redeemed. 6. Which of the following is not an objective of financial reporting by state and local governments? A. To assist financial report users in comparing actual financial results with the legally adopted budget. B. To assist users in assessing financial condition and results of operations. C. To assist users in assessing the adequacy of systems and controls. D. None of the above; that is, all of the above are objectives of state and local government financial reporting. 7. The minimum requirements for general purpose external financial reporting include: B. Government-wide and fund basic financial statements, including the notes thereto. D. All of the above. 8. The three sections recommended by GASB for inclusion in the Comprehensive Annual Financial Report (CAFR) are: A. Introductory, financial, and statistical.
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AC548+PRACTICE+TEST+1 - AC548 PRACTICE TEST 1 Student: _ 1....

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