True / False Questions
1. Special purpose governments generally provide a wider range of services to their
residents than do general purpose governments.
True False
2. Examples of general purpose governments include cities, towns, and public schools that
receive tax revenue to finance the services they provide.
True False
3. The Governmental Accounting Standards Board (GASB) is the body authorized to
establish accounting principles for all state and local governments, both general purpose and
special purpose.
True False
4. The Governmental Accounting Standards Board (GASB) is the body authorized to
establish accounting principles for all government entities.
True False
5. The Financial Accounting Standards Board (FASB) is the body authorized to establish
accounting principles for all colleges and universities and health care entities.
True False
6. Neither governmental nor not-for-profit entities have residual equity that can be
distributed to owners.
True False
7. A characteristic common to governmental and not-for-profit organizations is that they do
not exist to provide goods or services at a profit or profit equivalent.
True False
8. The needs of users of government financial reports are the same as those of users of
business entity financial reports.
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