Acct: Financial Reporting Of State And Local Governments. Trivia Quiz!

57 Questions | Total Attempts: 75

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Acct: Financial Reporting Of State And Local Governments. Trivia Quiz!

Welcome to this ACCT quiz on financial Reporting Of State And Local Governments! Proper reporting of State and Local Governments of their financial position and activities to the public at large is essential, especially for accountability and funding. These reports are the standard that citizens, oversight bodies, and other stakeholders use to judge their government's efficiency, effectiveness, and overall financial condition. Take the quiz below see how much you know.


Questions and Answers
  • 1. 
    Under the hierarchy of GAAP for a state and local government, which of the following has the highest level of authority?
    • A. 

      AICPA practice bulletins

    • B. 

      Consensus positions of the GASB Emerging task force

    • C. 

      Implementation guides published by GASB staff

    • D. 

      AICPA industry audit and accounting guides

  • 2. 
    An adverse opinion is most likely to be rendered when:
    • A. 

      Fund financial statements are presented along with government wide statements in the basic financial statements

    • B. 

      There is a violation of generally accepted accounting principles that does not cause a material mistatement

    • C. 

      The auditor is not independent of the government being audited

    • D. 

      The government issues inaccurate financial statements

  • 3. 
    Which of the following is a true statement about the relationship between GAGAS and GAAS?
    • A. 

      GAGAS and GAAS provide standards for financial audits, attestation engagements, and performance audits

    • B. 

      GAGAS encompass GAAS and supplement certain GAAS

    • C. 

      Single audits must be performed using GAGAS and GAAS

    • D. 

      GAGAS are promulgated by the government accountability office and GAAS are promulgated by the governmental Accouting standards board

  • 4. 
    The GAGAS conceptual framework for independence should be employed:
    • A. 

      Annually

    • B. 

      At the end of the audit engagement

    • C. 

      When taking on a nonaudit service engagement at an audited entity

    • D. 

      All of the above

  • 5. 
    The goal of a performance audit is to:
    • A. 

      Provide information to improve program operations and facilitate decision making by management

    • B. 

      Determine whether government programs and activites are meeting their stated goals and objectives

    • C. 

      Determine whether governments are performing their duties in the most economic and efficient manner possible

    • D. 

      All of the above

  • 6. 
    Under GASB reporting model, materiality is determined:
    • A. 

      For opinion units

    • B. 

      At the government wide level

    • C. 

      At the fund level

    • D. 

      For governmental and business type activities and the aggregate discretely presented component units only

  • 7. 
    Single Audits performed pursuant to OMB circular A-133:
    • A. 

      Apply to all entities that recieve 500,000 or more in a fiscal year

    • B. 

      Result in the same number of reports as a GAGAS or yellow book audit

    • C. 

      Must be performed in accordance with GAGAS

    • D. 

      Result in a reporting package that is submitted to the government accountability office

  • 8. 
    An auditor must audit a major program:
    • A. 

      All type A programs, unless the auditor has identified them as low risk

    • B. 

      All type A programs, including and the auditor considers low risk programs

    • C. 

      All type B programs

    • D. 

      At least 50 percent of all federal funds received

  • 9. 
    OMB circular A-133 and the related Compliance Supplement provide guidance for auditors in:
    • A. 

      Conducting a financial audit of governmental entities

    • B. 

      Conducting financial audits, attestation engagements, and performance audits of governmental units

    • C. 

      Conducting a single audit of a government that has expended more than 500,000 in federal financial assistance

    • D. 

      None of the above

  • 10. 
    The auditors responsibility for required supplementary information RSI is:
    • A. 

      The same as with the basic financial statements

    • B. 

      To perform certain limited procedures to ensure that RSI is fairly presented in relation to the audited financial statements

    • C. 

      The same as for all information in the financial section of a comprehensive annual financial report

    • D. 

      To render an opinion as to the fairness of the RSI and whether it conforms to GAAP

  • 11. 
    The FASB's objectives of financial reporting for not for profit organizations includes which of the following
    • A. 

      Assesing fiscal responsibility

    • B. 

      Assessing management and stewardship and performance

    • C. 

      Assessing budget to actual performance for the period

    • D. 

      All of the above

  • 12. 
    Voluntary health and welfare organizations are required to present which of the following financial statements?
    • A. 

      Statement of financial position

    • B. 

      Statement of cash flows

    • C. 

      Statement of functional expenses

    • D. 

      All of the above are required

  • 13. 
    Temporarily restricted net assets may be released from restriction by:
    • A. 

      Written authorization of the organizations board of directors

    • B. 

      Approval of the independent auditor

    • C. 

      Satisfaction of purpose restrictions

    • D. 

      Advice of legal counsel

  • 14. 
    In a local NFP elementary school's statement of cash flows, a contribution restricted for use on new building project would be reported as:
    • A. 

      A financial activity

    • B. 

      A capital and related financing activity

    • C. 

      An investing activity

    • D. 

      An operating activity

  • 15. 
    A wealthy donor promised 1 million to the local art museum contingent  on the museum obtaining a grant from the state for 500,000. Upon completing a signed agreement with the donor, the museum should:
    • A. 

      Record a debit to contributions recievable 1,000,000

    • B. 

      Record a debit contributions receivable 500,000

    • C. 

      Not make a journal entry

    • D. 

      Either a or c

  • 16. 
    A local CPA volunteered their time to develope a computerized accounting system. If she wouldnt have done this the school would have had to hire someone. The value of sharons time devoted to this project should be recorded as:
    • A. 

      Contribution revenue

    • B. 

      A supporting services expense

    • C. 

      Neither a or b

    • D. 

      Both a and b

  • 17. 
    Many not for profit organizations attempt to classify fund raising expenses as program service expenses by making the activities look educational. For such expenses to be reported as program expenses, they must meet which of the following three criteria:
    • A. 

      Purpose, mission related, and benefit to the public

    • B. 

      Purpose, audience, and content

    • C. 

      Purpose, expand donor base, and content

    • D. 

      Reasonable, improve financial condition, and benefit to the public

  • 18. 
    Which of the following would not be considered a support expense by the NFP organization Save Our Lakes?
    • A. 

      The cost of printing the annual report

    • B. 

      The cost of mailing to past contributors requesting donations for lakeshore cleanup

    • C. 

      The cost of the annual lakeshore cleanup activities

    • D. 

      Neither a or c

  • 19. 
    A particular organization functions as an intermediary between donors and other beneficiary organizations. The intermediary organization must report contribution revenue from donors if:
    • A. 

      The organization has variance power

    • B. 

      The organization elects to consistently report such donor gifts as contribution revenue

    • C. 

      The beneficiary organization requests a delay in receiving the contribution

    • D. 

      All of the above

  • 20. 
    State regulation of non for profit organizations derives from the states power to
    • A. 

      Grant exemption from income taxes

    • B. 

      Give legal life to a not for profit

    • C. 

      Grant exemption from sales taxes

    • D. 

      Grant licenses for charitable solicitation

  • 21. 
    To be legally recognized as a not for profit organization, the save the local trees association should:
    • A. 

      Apply or register with the state government where it operates

    • B. 

      Register with the IRS

    • C. 

      Apply or register with the local governments where it operates

    • D. 

      All of the above

  • 22. 
    The ongoing compliance stage of the life cycle of a tax exempt organization that interacts with the IRS includes:
    • A. 

      Notify the IRS of a merger

    • B. 

      Application for exempt status with form 1023

    • C. 

      Meeting public disclosure requirements

    • D. 

      Filing unrelated business income tax returns

  • 23. 
    Federal regulation of not for profit organizations derives from the federal governments power to:
    • A. 

      Grant licenses for charitable solicitation

    • B. 

      Grant exemption from federal income taxes

    • C. 

      Grant exemption from sales taxes

    • D. 

      Give legal life to a not for profit corportion

  • 24. 
    Under the IRC, public charities are allowed to conduct direct lobbying activity. What if any limit is placed on such lobbying?
    • A. 

      There is no limit provided no propaganda is distributed by the charity

    • B. 

      There is no limit provided no individual or group contributes more than 500 to lobbying acitivity in one year

    • C. 

      There is no limit provided the lobbying activity directly affects the NFPs charitable purpose

    • D. 

      There is a limit of up to 1,000,000 a year based on the size of the NFPs exempt program costs

  • 25. 
    A not for profit organization that is exempt from federal taxes and receives it support from a small number of individuals instead of from the public at large is called a:
    • A. 

      Private foundation

    • B. 

      Public charity

    • C. 

      Nongovernmental organization

    • D. 

      Public foundation

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