Governmental and Nonprofit Accounting Flashcards
7 cards from real Accounting Online Program practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Governmental and Nonprofit Accounting flashcards as text
The Management's Discussion and Analysis (MD&A) section in a government ACFR is classified as:
Answer: Required supplementary information
The MD&A is classified as Required Supplementary Information (RSI) and must precede the basic financial statements, providing management's narrative analysis.
Which GASB statement requires government employers to recognize a net pension liability on the face of their government-wide financial statements?
Answer: GASB 68
GASB Statement 68 requires government employers to recognize a net pension liability, calculated as the total pension liability minus the plan's fiduciary net position.
The Statement of Financial Position for a nonprofit organization presents:
Answer: Total assets, liabilities, and net assets classified by donor restrictions
The Statement of Financial Position (the nonprofit balance sheet) presents total assets, total liabilities, and net assets separated into with and without donor restriction categories.
Which measurement focus do proprietary funds use under GASB standards?
Answer: Economic resources
Proprietary funds use the economic resources measurement focus and full accrual basis of accounting, the same approach used by private-sector commercial enterprises.
When does a nonprofit organization recognize revenue from a conditional contribution?
Answer: When the conditions specified by the donor are substantially met
Conditional contributions are recognized as revenue only after the recipient nonprofit has substantially met the donor's conditions, removing the barrier to entitlement.
Which of the following is NOT classified as a fiduciary fund type under GASB standards?
Answer: Capital Projects Fund
Capital Projects Fund is a governmental fund used for capital asset construction, while fiduciary funds (pension trusts, investment trusts, private-purpose trusts, custodial funds) hold assets for the benefit of others.
Which accounting standard-setting body is responsible for establishing GAAP for U.S. nonprofit organizations?
Answer: FASB
FASB establishes GAAP for private-sector entities, including nonprofit organizations, while GASB covers state and local governments.