Accounting For Governmental & Not-for-profit Entities Quiz

9 Questions

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Accounting Quizzes & Trivia

Financial Accounting means to analyze, summarize, and record financial transactions as well as to show an accurate picture of financial affairs of the company. This quiz has been developed to test your knowledge of Financial Accounting Concepts for Non-Governmental and Not For Profit Entities. So, let's try out the quiz. All the best!


Questions and Answers
  • 1. 
    Like other governmental funds, proprietary funds have no emphasis on income measurement.
    • A. 

      True

    • B. 

      False

  • 2. 
    Governmental entities are required to use an internal service fund for self-insurance activities.
    • A. 

      True

    • B. 

      False

  • 3. 
    One purpose of an internal service fund is to pool the government's resources for a more efficient operation in carrying out the fund's purpose.
    • A. 

      True

    • B. 

      False

  • 4. 
    Enterprise funds are used for "business-type" activities, and internal service funds are used predominantly for "governmental-type" activities.
    • A. 

      True

    • B. 

      False

  • 5. 
    Comparing non-profit organizations to for-profit organizations, which of the following statements is not correct?
    • A. 

      With not-for- profit 'products', there is typically a weaker unique selling proposition

    • B. 

      In the not-for-profit environment, it may be necessary to develop a campaign to drive behaviour in all targets rather than a specific audience

    • C. 

      The mission statement of non-profit organizations usually revolve around being the best in a particular sector.

    • D. 

      Price has different connotations in not-for-profit situations

  • 6. 
    Which of the following is not a key characteristic of not-for-profit organizations?
    • A. 

      Multiple stakeholders

    • B. 

      Revenue orientation

    • C. 

      Multiple objectives.

    • D. 

      Transparency.

  • 7. 
    Which of the following is not an example of non-profit marketing?
    • A. 

       Political marketing.

    • B. 

      Cause marketing.

    • C. 

      Event marketing.

    • D. 

      Public-sector marketing.

  • 8. 
    A Fairtrade scheme is an example of a _________.
    • A. 

      Business enterprise.

    • B. 

      Public sector.

    • C. 

      Campaigning organization

    • D. 

      Social enterprise.

  • 9. 
    Which of the following is not one of the reasons why non-profit organizations frequently do not value their beneficiary customers?
    • A. 

      They have extensive research programme to identify customers' needs.

    • B. 

      They exist in a monopolistic situation.

    • C. 

      The demand far outstrips supply

    • D. 

      A lack of market segmentation activity exists