Info
Warning
Danger

Study Resources (Accounting)

36.Which of the following statements regarding government budgets is not true? A.A budget should be enacted before the fiscal year begins and be integrated with the financial accounting system so that actual results can be compared to budgets at regular intervals. B.The budget’s role is limited to inclusion in internal financial reports.
14 Views
View Answer
11.Total quality management (TQM) seeks to continuously improve an organization's ability to meet or exceed customers' demands, and, as such, is useful in a government setting as well as a business setting. 12.Service efforts and accomplishments measures suffer from the same problem as line-item or object-of-expenditures budgeting; that is, focusing only.
21 Views
View Answer
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.
6 Views
View Answer
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.
4 Views
View Answer
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.
6 Views
View Answer
59.What are the major types of audits and audit engagements described in the Government Accountability Office’s Government Auditing Standards or generally accepted government auditing standards (GAGAS), and how do they differ? 60."An unmodified opinion on the financial statements of a local government means that all statements in the comprehensive annual financial.
12 Views
View Answer
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.
13 Views
View Answer
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.
4 Views
View Answer
Essay Questions 53.Are governments required to report their budgets externally? Explain. 54.Explain how strategic planning, budgeting, and performance measurement can be integrated in a government and why this integration is desirable. 55.What budgeting approach requires justification for the inclusion of every activity each year? Briefly describe this method and how it can be.
10 Views
View Answer
Short Answer Questions 51.The following are key terms in Chapter 12 that relate to budgeting of government services: A. Efficiency measures B. Effectiveness measures C. Planning-programming-budgeting system D. Zero-based budgeting E. Program budgeting F. Flexible budgeting G. Incremental budgeting H. Budget calendar For each of the following definitions, indicate the key.
12 Views
View Answer
Short Answer Questions 67.The following are key terms in Chapter 13 that relate to accounting for not-for-profit organizations: A. Nonexchange transactions B. Temporarily restricted net assets C. Collections D. Variance power E. Exchange transactions F. Board-designated net assets G. Permanently restricted net assets H. Promise to give For each of the following definitions,.
18 Views
View Answer
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.
14 Views
View Answer
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.
11 Views
View Answer
52.A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements? A.Statement of activities. B.Statement of financial position. C.Statement of cash flows. D.Statement of functional expenses. 53.When a nongovernmental not-for-profit organization spends money for the purpose for which an external donor intended, then.
20 Views
View Answer
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.
11 Views
View Answer
64.Answer the following questions relating to the provisions of the Single Audit Act of 1984 and 1996 Amendments. (a)What is a single audit? (b)How do you determine if your government must have a single audit? (c)Where would you find authoritative guidance on conducting a single audit? 65.Describe the importance of materiality for auditors and.
14 Views
View Answer
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.
7 Views
View Answer
11.Expense amounts by natural classification can be determined from the statement of functional expenses, as can the expense amounts for program services and supporting services categories. 12.The FASB requires not-for-profits to prepare a statement of cash flows. 13.Similarity in the characteristics of nongovernmental not-for-profit (NFP) organizations and governmental NFP organizations can make.
13 Views
View Answer
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.
4 Views
View Answer
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.
14 Views
View Answer
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.
16 Views
View Answer
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.
15 Views
View Answer
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.
8 Views
View Answer
56.Explain what is required to develop an effective total quality management (TQM) program for a government. 57.Under federal guidelines, when is a cost considered reasonable? 58.Describe what is meant by the direct costs of a program (for example, a fire prevention program) and why it is important to distinguish direct costs from.
12 Views
View Answer
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.
13 Views
View Answer
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.
15 Views
View Answer
69.The not-for-profit organization Accountants Rule has a mission to promote the accounting profession in the local community.It is heavily supported by local accounting firms and businesses seeking to increase the number of individuals entering the profession.Following is the pre-closing trial balance for the organization.In good form, prepare a statement of.
23 Views
View Answer
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 .
4 Views
View Answer
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.
11 Views
View Answer
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.
29 Views
View Answer
Multiple Choice Questions 32.Which of the following characteristics of not-for-profit organizations (NFPs) can be used to distinguish a nongovernmental from a governmental NFP? A.Contributions by resource providers who do not expect a return on investment. B.Ability to impose taxes on citizens. C.Absence of ownership interests. D.All of the above characteristics are generally different for nongovernmental.
13 Views
View Answer
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.
6 Views
View Answer
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.
12 Views
View Answer
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.
17 Views
View Answer
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).
12 Views
View Answer
Multiple Choice Questions 26.Which of the following statements is not consistent with the GASB's "Budgeting, Budgetary Control, and Budgetary Reporting Principle"? A.An annual budget must be adopted using generally accepted accounting principles. B.The accounting system should provide the basis for appropriate budgetary control. C.Budgetary comparisons should be presented for the General Fund and each.
17 Views
View Answer
68.For each of the following unrelated transactions, record the journal entry that would be made by a nongovernmental, not-for-profit organization involved in medical research. If no journal entry is recorded, explain why there is no journal entry. 1. The entity received $1,500 in cash contributions. Of that amount, $1,000 is to.
18 Views
View Answer
21.The FASB requires the statement of financial position prepared by a not-for-profit organization to report net assets in these categories: unrestricted, temporarily restricted, net investment in capital assets, and permanently restricted. 22.To be considered a nongovernmental not-for-profit an organization must be tax-exempt. 23.According to the information provided in the textbook, Beta Alpha.
13 Views
View Answer
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.
11 Views
View Answer
True / False Questions 1.Budgeting is an important part of a manager's planning and control responsibilities in both public and private organizations. 2.In governments, the budget has always played a role in external financial reports through the required budget-to-actual comparison schedules or statements for those funds that have a legally approved budget. 3.The.
25 Views
View Answer
59.Identify and define the three broad categories of service efforts and accomplishments (SEA) measures. 60.The finance officer of a small city has heard that certain items of cost may be allowable under federal grants, even though they were not incurred specifically for the grant. To what source could the finance officer.
18 Views
View Answer
True / False Questions 1.Under current accounting and reporting standards nongovernmental, not-for-profit organizations must utilize the fund accounting structure set forth in the AICPA Audit and Accounting Guide Not-for-ProfitEntities. 2.A voluntary health and welfare organization (VHWO) is a type of not-for-profit that depends primarily on charges for services as a source of.
15 Views
View Answer
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.
25 Views
View Answer
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.
12 Views
View Answer
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.
8 Views
View Answer
Essay Questions 57.What are clarified auditing standards? Do they apply to audits of governments and not-for-profit organizations? 58.Audit objectives set forth by the United States Comptroller General in Government Auditing Standards (GAS or GAGAS) differ from the AICPA view (GAAS) as discussed in Chapter 11. What are some of the differences? 11-1 .
13 Views
View Answer
42.A not-for-profit (NFP) organization acting as a financial intermediary receives a contribution. Under the FASB Codification the NFP would be most likely to recognize the contribution as a liability under which of the following situations? A.The NFP has variance power. B.The NFP is acting as an agent, receiving the contribution on behalf.
14 Views
View Answer
Essay Questions 70.Explain the purpose of FASB ASC 958-720-45 on joint-cost accounting as it relates to reporting fund-raising and program expenses of a not-for-profit organization. How is this standard applied? 71.Distinguish not-for-profit organizations from entities in the government and commercial sectors of the U.S. economy. 72.Distinguish between "support" and "revenues from exchange transactions." 13-1 .
10 Views
View Answer