Government and Non-Profit Accounting Chapter 1

The ___ is the accounting standards-setting body for state and local governments.

GASB

GASB stands for ___.

Governmental Accounting Standards Board

The federal government requires federal agencies to prepare an annual ___, which encompasses both financial and performance reporting.

Performance and Accountability Report

The ___ sets standards for the federal government.

FASAB

FASAB stands for ___.

Federal Accounting Standards Advisory Board

The ___ sets accounting standards for not-for-profit entities.

FASB

____ are not standards; instead, they articulate the framework within which the standards are developed.

concepts statements

The FASAB objectives for ____ financial reporting cover budgetary integrity, operating performance, stewardship, and systems and controls.

federal

____ segregates an entity's assets, liabilities, and net assets into separate accounting entities based on legal requirements, donor-imposed restrictions, or special regulations.

fund accounting

Because each fund is a separate accounting entity, each must have a set of ___.

self-balancing accounts

The ___ requires both government-wide and fund-based reporting for external reporting purposes.

GASB

The ___ does not require not-for-profit entities to use fund-based reporting but does not preclude such reporting, provided the entity complies with the FASB's financial reporting requirements.

FASB

For basic governmental functions state and local governments use a unique, hybrid-type basis of accounting called the ____ basis of accounting.

modified accrual

When using the modified accrual basis of accounting, only inflows and outflows of ____ are measured.

current financial resources

State and local governments report on two levels: a ___ level and a ___ level.

government-wide, fund

The state and local government ___ reporting level distinguishes only between governmental and business-type activities.

government-wide

The state and local __ reporting level reports on individual funds.

fund

State and local government-wide financial statements are prepared using the ___ basis of accounting.

full accrual

Not-for-profit organization financial statements are required to focus on the ___.

organization as a whole

Not-for-profit financial statements report on three classes of net assets: ___, ___, and ___.

unrestricted, temporarily restricted, permanently restricted

The origins of GAAP can be traced back to the period just after the ____.

1929 stock market crash

The FASB was established in __.

1973

The GASB was established in __.

1984

___ members are appointed to the FASB and GASB.

seven

The ___ appoints the seven members of GASB and FASB.

FAF

FAF stands for ___.

Financial Accounting Foundation

The FASAB was established in __.

1990

The FASAB has ___ members.

nine

The nine members of the FASAB includes ___ public (nonfederal) members and representatives of the offices of the ___ officials who have primary responsibility for federal accounting and financial management.

six, three

FASAB proposals become ___ for federal agencies if neither the comptroller general nor the director of the OMB objects.

GAAP

The GASB establishes accounting standards, but it has no ___ powers.

enforcement

___ are at the top of the hierarchy of pronouncements for state and local governments.

GASB Statements and Interpretations

_____ are second in the hierarchy of pronouncements for state and local governments.

GASB Technical Bulletins

____ are third in the hierarchy of pronouncements for state and local governments.

AICPA Practice Bulletins

____ are fourth in the hierarchy of pronouncements for state and local governments.

GASB implementation guides