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Study Resources (Accounting)

Short Answer Questions 58.The following are key terms in Chapter 15 that relate to accounting for colleges and universities: A. Term endowments B. Annuity agreements C. Collections D. Pooled life income agreements E. Spending rate F. Total return For each of the following definitions, indicate the key term from the list above that.
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Short Answer Questions 51.The following are key terms in Chapter 17 that relate to accounting and financial reporting for federal agencies and the federal government: A. Apportionment B. Budgetary resources C. Expended appropriation D. Governmental assets E. Heritage assets F. Intragovernmental assets G. Stewardship investments H. Stewardship land For each of the following.
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41.Information literacy is the ability to ___ information in all of its various formats. A. Find and evaluate B. Use and communicate C. Find, evaluate, use and communicate D. Use and evaluate 42.According to the University of Maryland's University College, information should be evaluated based on ___ criteria. A. Two B. Three C. Four D. Five 43.Which of.
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52.Your client is a nongovernmental not-for-profit museum that operates a gift shop. Explain the unrelated business income tax to your client and suggest ways to avoid this tax. 53.Explain the purpose of "intermediate sanctions". 54.Describe the difficulty in comparing the financial performance of a not-for-profit organization to other similar organizations. What benchmarks.
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54.The Desert Conservation Agency was authorized by the United States Congress to commence operations on October 1, 2017. Record the following transactions in general journal form, as they should appear in the budgetary and proprietary accounts of the agency. For each entry indicate whether it affects the budgetary accounts or.
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51.The AICPA Core Competency framework comprises three parts. Which of the following best pairs a specific competency with the correct part? A. Resource management, broad business perspective B. Risk analysis, functional C. Both resource management, broad business perspective and risk analysis, functional D. Neither resource management, broad business perspective nor risk analysis, functional 52.The.
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62.Which UMUC evaluation criterion is indicated by each of the following questions?a. Can you establish the writer's credentials?b. Can you tell when the source was created/written?c. Can you tell who created the information?d. Does the information contain advertising?e. Does the information contain any obvious errors of fact?f. Does the source.
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36.One of the purposes of the Federal Financial Management Improvement Act of 1996 was to: A.Establish a requirement that the financial statements of the federal government as a whole be audited. B.Improve the effectiveness of programs receiving federal funds. C.Establish generally accepted federal accounting principles. D.Rebuild the credibility and restore public confidence in the.
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11.Federal government agencies prepare a management's discussion and analysis (MD&A) to be included in their general purpose federal financial report. 12.Under SFFAC No. 2, all federal agencies are defined as separate reporting entities for financial statement preparation and reporting purposes. 13.Objectives that are identified by SFFAC No. 1 for federal financial reporting.
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52.The Federal Monuments Commission began operations on October 1, 2017. Show in general journal form all entries that should be made in budgetary and proprietary accounts of the agency to record the following events: 1. The Congress passed, and the President signed, a one-year appropriation for fiscal year 2018 for the.
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Essay Questions 53.There are three main reasons why a nongovernmental not-for-profit hospital does not receive the full amount that it normally charges for a room: 1) contractual adjustments arising from transactions with third-party payors, 2) charity service provided to indigent patients, and 3) bad debts. Compare the accounting treatment for the.
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Multiple Choice Questions 26.Which of the following is not a true statement about tax-exempt organizations? A.They must be organized to serve the charitable needs of the public at large. B.They must first become a not-for-profit corporation or charitable trust. C.They are permitted to do some political lobbying if guidelines are met. D.Their unrelated business income.
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Multiple Choice Questions 26.According to FASB standards, which of the following entities would not be considered a health care organization? A.The Heart Research Institute. B.The St. George Hospital. C.The Family Practice Medical Clinic. D.The Northeast Health Maintenance Organization. 27.Which of the following is (are) considered an authoritative source of GAAP for nongovernmental not-for-profit health care entities? A.The.
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36.Which of the following could be included in the performance indicator measure provided by a nongovernmental not-for-profit hospital? A.Contribution to an endowment. B.Gain on sale of equipment. C.Grant restricted for diabetes research. D.Interest income that is temporarily restricted. 37.Which of the following would usually be considered as temporarily restricted net assets in a nongovernmental not-for-profit.
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Essay Questions 50.Describe the process for becoming a tax-exempt organization. Why do you believe it is important for an accountant to understand this process? 51.Why do states and the federal government exercise oversight responsibility over not-for-profit, tax-exempt corporations? How do states and the federal government differ in the way they exercise this.
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Multiple Choice Questions 26.Which of the following is not a fund group used by the federal government? A.General Fund. B.Permanent Fund. C.Special Fund. D.Trust Fund. 27.Which of the following is not a part of the FASAB due process for establishing a federal financial accounting standard? A.Public comment on a discussion memorandum. B.Issuing an exposure draft. C.Unanimous approval by the.
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True / False Questions 1.Nongovernmental (private) colleges and universities should follow FASB standards; governmental (public) colleges and universities should follow GASB standards. 2.Under GASB standards, public colleges and universities are considered general purpose governments. 3.The accrual basis of accounting is used to record revenues and expenses of both public business-type and private colleges.
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61.Explain the process of financial reporting of the U.S. Government as a whole. Does the federal government receive an unmodified audit opinion on its financial report? 62.Describe the purpose of a management's discussion and analysis (MD&A) in the general purpose federal financial report of a federal agency. 63.What is the difference between.
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63.Which generic AIS element is exemplified by each item below?a. Balance sheetb. Customer's checkc. General ledger softwared. Requiring two signatures on checks over $500e. Sales invoicef. Sales transaction fileg. Spreadsheet softwareh. Statement of cash flowsi. Storing accounting records in a locked filing cabinetj. Vendor master file 1-1 .
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50.Record in general journal form the following selected transactions for Avalon General Hospital, a nongovernmental not-for-profit institution. 1. Gross charges for patient services rendered during the period amounted to $7,870,000, of which $350,000 represented charity care for indigent patients. 2. During the year the provision for bad debts was set at.
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58."Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not? 59.Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts. 60.Identify the office, officer, or department.
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11.Not-for-profit organizations risk loss of their tax-exempt status if they engage in any political activity. 12."Excess benefit transactions" are those in which persons who have substantial influence over the not-for-profit organization engage in transactions that result in economic benefits to them that are excessive, such as unreasonable compensation, sale of assets.
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True / False Questions 1.Financial reporting standards for all hospitals are established by the FASB. 2.Patient service revenues and related receivables exclude charges for charity care services. 3.In accounting for health care entities, the account Provision for Bad Debts should be reported as a contra-revenue, rather than as an expense. 4.Under the FASB GAAP.
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True / False Questions 1.Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board. 2.By law, federal agencies must incorporate the accounting standards (GAAP) established for the federal government into their financial management systems. 3.The objectives of federal financial reporting are to assist report.
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11.Accounting information systems is an important area of study for future accountants because: (i) Developing a strong accounting information system helps achieve some of the components of the FASB Conceptual Framework of Accounting, (ii) Studying AIS helps students develop many of the core competencies suggested by the AICPA, (iii) Acquiring.
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Essay Questions 61.Which generic element of the AIS is most closely associated with each of the following questions?a. Beyond the general-purpose financial statements, what other reports will managers and system users need?b. How many copies of each source document will be required?c. How should the AIS be designed to facilitate the.
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Multiple Choice Questions 1.An accounting information system is a set of interrelated: A. Activities and documents only. B. Activities and technologies only. C. Documents and technologies only. D. Activities, documents and technologies. 2.The components of an accounting information system are designed to collect ___ and report ___. A. Data; information B. Data; data C. Information; information D..
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Essay Questions 55."Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds, scholarships, and fellowships." Do you agree or disagree with this statement? If you disagree, explain how refunds, scholarships, and fellowships should be recorded. 56.If a private university receives.
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61.Manthei University, a private university, has provided the following information concerning selected transactions. Prepare in general journal form the entries required for each of the transactions. 1. The university was awarded a federal grant in the amount of $1,800,000 to be used for a specified research project (determined to be a.
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11.A nongovernmental not-for-profit health care entity would report the net asset categories unrestricted, restricted, and permanently restricted. 12.Continuing care retirement communities (CCRC) provide residential care in a facility, along with some level of long-term medical care that is less intensive that hospital care. 13.All health care organizations report investments at fair value.
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Multiple Choice Questions 27.Which of the following statements is true regarding generally accepted accounting principles (GAAP) for colleges and universities? A.The FASB has set standards for private and public colleges and universities from the time of its inception in 1974. B.The National Association of Colleges and University Business Officers (NACUBO) provides category (b).
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Short Answer Questions 48.The following are key terms in Chapter 14 that relate to regulatory and taxation issues of not-for-profit organizations: A. Unrelated business income B. Public charity C. Charitable solicitation D. Lobbying E. Debt financed income F. Private foundation G. Propaganda For each of the following definitions, indicate the key term.
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True / False Questions 1.A state has the obligation to monitor and regulate a not-for-profit (NFP) organization because it granted the NFP tax-exempt status through the not-for-profit corporation laws. 2.The federal government's primary objective in regulating not-for-profit organizations through the income tax laws is to limit the number of exempt organizations that.
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58."The goal of financial and operational analysis for the manager is to determine the creditworthiness of the health care organization." Do you agree with the statement? Why or why not? 59.Explain how one can evaluate both the financial performance of a hospital and the quality of health care the hospital provides. 16-1 .
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47.Which of the following is not a classification of revenues for a college or university as recommended by the National Association of College and University Business Officers (NACUBO)? A.Sporting events. B.Federal appropriations. C.Investment income. D.Private gifts. 48.State educational appropriations received by a public university are classified as which of the following on the statement of.
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36.A good measure that can be used to help assess whether a not-for-profit organization is spending too much on overhead, such as general and administrative expenses, is: A.Percentage of unrestricted net assets to operating expenses. B.Current ratio. C.Total revenues divided by total expenses. D.Percentage of program expenses to total expenses. 37.A good measure of whether.
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55.Contrast the statement of cash flows that nongovernmental not-for-profit hospitals prepare to those that governmental hospitals prepare. 56.Describe what prepaid health care plans are and some of the related accounting issues. 57.What auditing issues are of particular significance to the health care industry? 16-1 .
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37.Which of the following is required as part of a complete set of financial statements for a private college or university? A.Statement of changes in operations. B.Statement of revenues, expenses, and changes in net assets. C.Statement of activities. D.Statement of functional expenses. 38.Colleges and universities often make loans to students. How would these loans be.
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60.Prepare in general journal form the entries required for each of the following selected transactions of Northern University, a state-funded public institution engaged only in business-type activities. Some of these transactions are related and some are not. 1. A generous alumnus donated $300,000 that can only be used for research on.
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11.An annuity agreement requires that a college pay the donor (or other designated individual) a fixed dollar amount at specified time intervals. 12.A statement of cash flows is required by GAAP for both private colleges and universities and public colleges and universities engaged in business-type activities. 13.Private colleges and universities report term.
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Short Answer Questions 49.The following are key terms in Chapter 16 that relate to accounting for health care organizations: A. Contractual adjustments B. Capitation fees C. Charity care D. Diagnosis-related groups E. Prospective payment system F. Health maintenance organizations G. Performance indicator H. Third-party payor For each of the following definitions, indicate the.
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21.Colleges and universities will report tuition waivers as either a contra-revenue account or an expense, depending on the purpose for which the waiver is given. 22.A split-interest agreement is when the university and another beneficiary share in the benefits from a donor's gift. 23.The Uniform Prudent Management of Institutional Funds Act specifies.
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51.Show entries in general journal form for the following transactions of Bothwell Regional Hospital, a nongovernmental not-for-profit hospital. 1. For the month just ended the hospital received in cash $8,000 from the hospital's gift shop sales, and received donated medicines with a fair value of $47,000. These medicines are of the.
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73.If the program services expenses category includes both directly related costs and indirect costs allocated to it, why is it necessary to have a separate category of "supporting services expenses"? 74.Would a not-for-profit library that receives the majority of its resources from a specific tax levy on local citizens remitted to.
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21.Which of the following statements about AIS is most true? A. Compared to introductory accounting, AIS is more likely to have problems with nondeterministic answers. B. Compared to introductory accounting, AIS is less likely to have problems with nondeterministic answers. C. Introductory accounting and AIS are equally likely to have problems with.
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64.AIS is an important area of study for future accountants, since a well-designed AIS can respond to many elements of the FASB Conceptual Framework. Indicate which element of financial statements from the FASB Conceptual Framework best describes each item below.a. Accounts payableb. Cashc. Common stockd. Cost of goods solde. Depreciation.
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31.The generic structure of most accounting information systems comprises ___ elements. A. Three B. Four C. Five D. More than five 32.Which generic element of the AIS is focused on master files, transaction files and junction files? A. Inputs B. Processes C. Outputs D. Storage 33.Which of the following is an example of an AIS output? A. Journal.
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