CPA quiz Gov Acctg

Better Essays
Governmental and Nonprofit Accounting
March 2014 - CPA EXAM Quiz – Answers and Explanations

[1] Net assets is an element of the financial statements of not-for-profit entities (NFPs). It
A. Net assets equal the residual interest in the assets of an entity that remains after subtracting its liabilities. For a business enterprise, equity (the ownership interest) is the analogue of net assets. In an NFP, which has no ownership interest in the same sense as a business enterprise, the net assets element is divided into three classes based on the presence or absence of donor-imposed restrictions. B. Equity and net assets are residuals.
C. Assets, not net assets, are probable future economic benefits obtained or controlled by aparticular entity as a result of past transactions or events.
D. Comprehensive income is the change in equity of a business enterprise during a periodfrom transactions and other events and circumstances from nonowner sources.
[2] Typical users of financial reports of nonbusiness entities include which of the following?
A. Constituents are typical users.
B. Governing and oversight bodies are typical users.
C. In addition to resource providers, constituents, and governing and oversight bodies, otherspotentially interested in the financial information provided by nonbusiness entities include managers, entity members, taxpayers, contributors, grantors, lenders, suppliers, creditors, employees, directors and trustees, service beneficiaries, financial analysts and advisers, brokers, underwriters, lawyers, economists, taxing authorities, regulatory authorities, legislators, the financial press, labor unions, trade associations, researchers, teachers, and students.
D. Resource providers are typical users.
[3] Evaluation of financial reporting by a not-for-profit entity should include which of the following considerations?
A. Not-for-profit entities often have no single indicator of performance comparable to abusiness entity’s net income.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Cpa vs Non Cpa

    • 333 Words
    • 2 Pages

    Professor Pam Meyer 28 November 2011 CPA vs. Non-CPA Many people may ask, “What are the differences between being a CPA and just being a non-certified CPA,” there are actually a lot of differences between the two. A CPA or Certified Public Accountant is someone who has a license to practice public accounting that is issued by their State Board of Accountancy. CPA’s, in contrast, have normally studied or majored in accounting during college, sat for the CPA exam, worked in an accounting firm for…

    • 333 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    CPA 04899

    • 192 Words
    • 1 Page

    2K5 Exported Questions–Regulation 3 Export Date: 7/11/2005 CPA-04899 Regulation Online Quiz Page 1 Miyasyke, Inc., a calendar year S corporation, has 5 equal shareholders at the end of the tax year. Miyasyke had $75,000 of taxable income. Miyasyke made distributions to its shareholders of $32,000 each, for a total of $160,000. Each shareholder's basis in the S corporationis 100,000 at the beginning of the tax year. What amount from Miyasyke should be included in each shareholder's gross income…

    • 192 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Management Acctg

    • 389 Words
    • 2 Pages

    The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. According to the Chartered Institute of Management Accountants…

    • 389 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Acctg for Decision Making

    • 1009 Words
    • 5 Pages

    RELEVANT INFORMATION & DECISION MAKING 1. Which of the following best defines the concept of a relevant cost? A. A past cost that is the same among alternatives. B. A past cost that differs among alternatives. C. A future cost that is the same among alternatives. D. A future cost that differs among alternatives. E. A cost that is based on past experience. 2. Susan is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alternatively…

    • 1009 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Cpa Handbook

    • 6630 Words
    • 27 Pages

    UNIFORM CPA EXAMINATION HANDBOOK CALIFORNIA BOARD OF ACCOUNTANCY EXAMINATION UNIT 2000 Evergreen Street, Suite 250 Sacramento, CA 95815 Telephone: (916) 561-1703 Facsimile: (916) 263-3677 Web: www.cba.ca.gov CONTACT INFORMATION California Board of Accountancy 2000 Evergreen Street, Suite 250 Sacramento, CA 95815-3832 Main Telephone: (916) 263-3680 Fax: (916) 236-3675 Web site: www.cba.ca.gov CBA Outreach E-mail: outreach@cba.ca.gov Certifications Telephone: (916)…

    • 6630 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    CB-ACCTG

    • 4608 Words
    • 19 Pages

    Lesson Plan on Capital Budgeting Capital Budgeting - process of deciding whether or not to commit resources to projects whose costs and benefits are spread over several time periods. Characteristics of a Capital Investment Decision: 1. Substantial amount of funds are required in capital projects. 2. Because of the length of time span by a capital investment decision, the element of uncertainty becomes more critical. 3. The effect of managerial errors will be difficult to reverse…

    • 4608 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Cpa Exam

    • 4154 Words
    • 17 Pages

    Illinois CPA Exam Information August, 2007 Web: www.ilboa.org E-mail: help@ilboa.org The Computer-based CPA Exam (CBT) Illinois Board Of Examiners 100 Trade Centre Drive, Suite 403 Champaign, Illinois 61820 Phone:(217) 531-0950 FAX: (217) 531-0960 Toll free (US) (866) 782-7230 Overview The final paper-and-pencil based Uniform CPA Examination was administered in November 2003. Replacing the paper-and pencil based examination is a computer-based test (CBT.) The CBT provides added examination…

    • 4154 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    The Cpa Profession

    • 748 Words
    • 3 Pages

    Two The CPA Profession 14e Vignette Discussion- CPA Firms – 4 Types (Table 2-1……..pg. 26) 1. Big Four 2. National 3. Regional 4. Large Local Major Activities of these firms * accounting and bookkeeping * taxes * consulting Six Organizational Structures p. 29 1. Proprietorship 2. General Partnership 3. General Corporation 4. Professional Corporation 5. Limited Liability Company 6. Limited Liability Partnership Typical positions in CPA firms (Table…

    • 748 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cpa Review

    • 472 Words
    • 2 Pages

    to serve as an aid, to improve their qualities in different aspects, and to be aware of their shortcomings; second, for the students, to communicate their views regarding the qualities that review centers should possess. The results indicated that CPA Review School of the Philippines (CPAR) is the students’ preferred accountancy review center in Metro Manila. The result also indicated that the top five (5) qualities that review centers should possess are teaching strategies, passing rate, faculty…

    • 472 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Fed Gov

    • 607 Words
    • 3 Pages

    Veronica Laverdure Global Issues 1/30/12 Responsibilities of Our Federal Government Without the Federal Government, where would the people of the United States of America stand today? The Government keeps everything in order and protects the citizens of our country. Governments exist in a variety of forms but most perform every essential function to hold a nation together. The United States government is a federal system, where the federal and state governments share power. There…

    • 607 Words
    • 3 Pages
    Good Essays