Which of the following assets is not properly classified as property, plant, and equipment?   A truck held for resale by an automobile dealership   Land improvements, such as parking lots and fences   A building used as a factory   Land used in ordinary business operations   One characteristic of a plant asset is […]

Federal Government Accounting  TRUE/FALSE (CHAPTER 17)   1.            If the federal Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the Board for reconsideration.   2.            Federal operations consist of 5 fund types—the general fund, special funds, trust funds, capital funds, […]

 Question 1A cognizant agency can be either an employee of a federal agency or of an independent accounting firm.   Question 2The Single Audit Act of 1984 was passed to eliminate the costly practice of requiring separate audits for each federal program in which an organization participated.   Question 3Performance audits are sometimes referred to […]

Zero-based budgeting requires the periodic review of all programs, not just new ones.   Question 2It is difficult for accountants to have a role beyond auditing the financial statements of governments and not-for-profits.    Question 3Outputs is a term used to indicate the quantity or units of service provided by an activity.   Question 4 […]

The statement of financial position of a not-for-profit health care organization should distinguish among unrestricted, temporarily restricted, and permanently restricted net assets.   Question 2Unlike businesses, not-for-profit health care providers often serve patients who they know will be unable to pay any portion of the amounts billed.   Question 3Private not-for-profit colleges and universities are […]

FASB Statement No. 117 directs that revenues and expenses be reported in a statement of financial position. 2.            In the statement of activities, FASB Statement No. 117 requires revenues to be reported as increases in one of the three categories of net assets, depending on donor-imposed restrictions; however, all expenses […]

Governments must combine their blended component units into both the fund and government-wide statements.   2.            Governments must combine their discretely presented component units into both the fund and the government-wide statements.              3.            A related organization is a contractual […]

Per GASB Statement No. 34, permanent funds are classified as fiduciary funds.   2.            In accounting for permanent funds only the income can be spent; the principal must be preserved intact.   3.            Fiduciary funds focus on current financial resources and use the full accrual […]

In both the fund statements and the government-wide statements, business-type activities and internal service funds are on a full accrual basis, and their measurement focus is on all economic resources.   2.            The operating statement required as one of the three basic financial statements for proprietary funds is called the […]

Which of the following assets is not properly classified as property, plant, and equipment?   A truck held for resale by an automobile dealership   Land improvements, such as parking lots and fences   A building used as a factory   Land used in ordinary business operations   One characteristic of a plant asset is […]