Accounting for Governmental & Nonprofit Entities Jacqueline Reck 18th Edition

ISBN10: 1259917053, ISBN13: 9781259917059

Chapter 1   Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

1) Special purpose governments generally provide a wider range of services to their residents than do general purpose governments.

2) Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide.

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.

4) The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all government entities.

5) The Financial Accounting Standards Board (FASB) is the body authorized to establish accounting principles for all colleges and universities and health care entities.

6) Neither governments nor not-for-profit entities have residual equity that can be distributed to owners.

7) A characteristic common to governments and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent.

8) The needs of users of government financial reports are the same as those of users of business entity financial reports.

9) The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and standards for the federal government and its agencies and departments.

10) The FASB, GASB, and FASAB all focus their standards on both internal and external financial reporting.