30 Free Test Bank for Government and Not For Profit Accounting 6th Edition by Granof 

It is fantastic for learning government accounting through understandable concepts and absorbing them quickly. Use 30 Free Test Bank for Government and Not For Profit Accounting 6th Edition by Granof to see how well you understand basic knowledge of accounting. Following are 30 free basic accounting testbanks questions with instant answers in multiple choice questions for Government and Not For Profit Accounting 6th Edition by Granof:

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To obtain a comprehensive understanding of a government’s fiscal health, a financial analyst should obtain an understanding of which of the following?

•  a) All the resources owned by the government.
•  b) All the resources that may be summoned by the government.
•  c) Demographic data about the residents served by the government.
•  d) All of the above.

Which of the following is NOT a reason why users need government and not-for-profit external financial statements?

•  a) To determine the ability of the entity to meet its obligations.
•  b) To determine the ability of the entity to continue to provide services.
•  c) To predict future fiscal solvency.
•  d) To evaluate the overall profitability of the entity.

Which of the following characteristics is unique to governments?

•  a) The ability to have activities financed with tax-exempt debt.
•  b) The power to impose fees.
•  c) The ability to issue tax-exempt debt.
•  d) The ability to have activities financed by Federal grants.

Which of the following activities is NOT an activity in which a government might engage?

•  a) Selling electric power.
•  b) Operating a golf course.
•  c) Operating a bookstore.
•  d) All of the above are activities that might be carried out by a government.

Which of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?

•  a) Investors and creditors.
•  b) Taxpayers.
•  c) Donors.
•  d) Internal managers.

Users of government financial statements should be interested in information about compliance with laws and regulations for which of the following reasons?

•  a) To determine if the government has complied with bond covenants.
•  b) To determine if the government has complied with taxing limitations.
•  c) To determine if the government has complied with donor restrictions on the use of funds.
•  d) To determine all of the above.

A primary characteristic that distinguishes governments from businesses is

•  a) The need to generate revenues equal to or in excess of expenditures/expenses.
•  b) The importance of the budget in the governing process.
•  c) The need to provide goods or services.
•  d) The correlation between revenues generated and demand for goods or services.

A primary characteristic that distinguishes not-for-profit entities from businesses is

•  a) The need to generate revenues equal to or in excess of expenditures/expenses.
•  b) The importance of the budget in the governing process.
•  c) The need to provide goods or services.
•  d) The correlation between revenues generated and demand for goods or services.

Which of the following is NOT a purpose of external financial reporting by governments? External financial reports should allow users to

•  a) Assess financial condition.
•  b) Compare actual results with the budget.
•  c) Assess the ability of elected officials to effectively manage people.
•  d) Evaluate efficiency and effectiveness.

Which of the following can be affected by GAAP?

•  a) Legal ability to issue bonds.
•  b) Ability to balance the budget.
•  c) Amount reported as employee pension plan contributions.
•  d) Claims and judgments settled.

In which of the following activities is a not-for-profit entity least likely to engage?

•  a) Providing educational services.
•  b) Providing health-care services.
•  c) Providing for terrorism defense.
•  d) Retail sales of cookies.

Which of the following characteristics distinguishes a government or not-for-profit entity from a business?

•  a) There is always a direct link between revenues generated and expenditures/expenses incurred.
•  b) Capital assets are used to produce revenues and save costs.
•  c) Revenues are always indicative of demand for goods and services.
•  d) The mission of the entity will determine the goods or services provided.

The most significant financial document provided by a government is the

•  a) Balance sheet.
•  b) Operating statement.
•  c) Operating budget.
•  d) Cash flow statement.

Which of the following is common to both governments and not-for-profit entities but distinguishes these entities from for-profit entities?

•  a) The budget is a legal, financial document.
•  b) Revenues are usually indicative of demand for goods or services.
•  c) There is direct matching of revenues and expenses.
•  d) There are no defined ownership interests.