Governmental & Not-for-Profit Accounting Flashcards
7 cards from real Certified Public Accountant 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 & Not-for-Profit Accounting flashcards as text
Which organization establishes GAAP for state and local governments in the United States?
Answer: GASB
The Governmental Accounting Standards Board (GASB) establishes GAAP for state and local governments, while FASB covers the private sector.
Under governmental accounting, what is the primary measurement focus for governmental funds?
Answer: Current financial resources
Governmental funds use the current financial resources measurement focus, tracking only current assets and current liabilities rather than long-term items.
Which fund type is used to account for a government's general operations and services?
Answer: General Fund
The General Fund accounts for most of a government's basic services and general operations that are not accounted for in other funds.
What basis of accounting is used in governmental fund financial statements?
Answer: Modified accrual basis
Governmental fund statements use modified accrual accounting, where revenues are recognized when measurable and available, and expenditures when the liability is incurred.
Under GASB standards, which of the following is classified as a fiduciary fund?
Answer: Pension Trust Fund
Pension Trust Funds are fiduciary funds used to account for resources held in trust for members and beneficiaries of pension plans.
In not-for-profit accounting under FASB ASC 958, which net asset classification replaced the old 'temporarily restricted' category?
Answer: Net assets with donor restrictions
FASB ASU 2016-14 simplified NFP net asset classifications to two: 'with donor restrictions' (replacing temporarily and permanently restricted) and 'without donor restrictions.'
Which financial statement is unique to government-wide reporting and not found in individual fund financial statements?
Answer: Statement of Net Position
The Statement of Net Position is a government-wide financial statement reporting all economic resources, whereas fund statements use fund balance rather than net position.