Introduction – Funds Accounting (#1)
Which of the following is a distinguishing characteristic of a nonbusiness organization?
Its revenues do not exceed its expenses
There is an absence of ownership interests that can be sold, transferred, or redeemed
It does not depreciate its capital assets
It does not charge fees for any of its services
Which of the following activities is performed by governments but not by not-for-profit organizations?
Issuing federal tax-free debt
Providing services to constituents
Government and nonprofit accounting focuses on which of the following?
Calculating profit or loss
Protecting investors from fraud
Reporting to management
For which types of organizations is the Financial Accounting Standards Board (FASB) responsible for establishing accounting and financial reporting standards?
Business-type organizations and not-for-profit organizations, including not-for-profit colleges, universities and health care providers
Business-type organizations; not-for-profit organizations; and all colleges, universities and health care providers, whether organized as not-for-profit or governmental entities
Business-type organizations only
All entities, except for those under the jurisdiction of the American Institute of CPAs
A not-for-profit organization performs all of the following activities except
Charging a fee for services provided
Paying dividends to shareholders
Purchasing long-lived (capital) assets
Paying overtime to employees
The Governmental Accounting Standards Board (GASB) establishes financial reporting standards for state and local governmental...
Please join StudyMode to read the full document