Individual Asignment Week 2
Individual Assignment Week Two: E1-1 and E3-2
Gabriella Goodfield
ACC/460
June 4, 2012
Martin Ginsburg
Individual Assignment Week Two: E1-1 and E3-2
E1-1 Select the best answer 1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profits organizations in that they A. They have different missions 3. The primary objectives of a not-for-profit organization or a government is to C. Provide services to constituents 4. In governments, in contrast to businesses, A. Expenditures are driven mainly by the ability of the entity to raise revenues 5. The organization responsible for setting accounting standards for state and local governments is the B. GASB 7. Governments differ from businesses in they B. Do not engage in transactions in which they "sell" goods or services 8. Interperiod equity refers to a condition whereby, C. Current-year revenues are sufficient to pay for current-year services
E3-2 Select the best answer 1. Upon ordering supplies a government should A. Debit encumbrances and credit reserve for encumbrances 2. Upon receiving supplies that had previously been encumbered a government should A. Debit reserve for encumbrances and credit encumbrances 3. Upon closing the books at year end a government should C. Debit fund balances and credit encumbrances 6. A government places an order for a particular item of equipment and encumbers $5,500. The item arrives accompanied by an invoice for $5,200. The entries that the government should make should include (but not necessarily be limited to): B. A debit to expenditures for
Gabriella Goodfield
ACC/460
June 4, 2012
Martin Ginsburg
Individual Assignment Week Two: E1-1 and E3-2
E1-1 Select the best answer 1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profits organizations in that they A. They have different missions 3. The primary objectives of a not-for-profit organization or a government is to C. Provide services to constituents 4. In governments, in contrast to businesses, A. Expenditures are driven mainly by the ability of the entity to raise revenues 5. The organization responsible for setting accounting standards for state and local governments is the B. GASB 7. Governments differ from businesses in they B. Do not engage in transactions in which they "sell" goods or services 8. Interperiod equity refers to a condition whereby, C. Current-year revenues are sufficient to pay for current-year services
E3-2 Select the best answer 1. Upon ordering supplies a government should A. Debit encumbrances and credit reserve for encumbrances 2. Upon receiving supplies that had previously been encumbered a government should A. Debit reserve for encumbrances and credit encumbrances 3. Upon closing the books at year end a government should C. Debit fund balances and credit encumbrances 6. A government places an order for a particular item of equipment and encumbers $5,500. The item arrives accompanied by an invoice for $5,200. The entries that the government should make should include (but not necessarily be limited to): B. A debit to expenditures for