Efficiency and Effectiveness - Government and Nonprofit Accounting - Exam, Exams of Accounting

Download Efficiency and Effectiveness - Government and Nonprofit Accounting - Exam and more Exams Accounting in PDF only on Docsity! Print Your Name: _____________________________ 1. An audit of a government, conducted in accordance with generally accepted auditing standards (GAAS), includes A. A determination of efficiency and effectiveness. B. An examination of financial statements and underlying records for conformance with generally accepted accounting principles (GAAP). C. Tests for compliance with laws and regulations. D. Both B and C. 2. Government Auditing Standards (GAS) issued by the U.S. Comptroller General apply to A. Financial statement audits of federal organizations made by the Government Accountability Office. B. Financial statement audits of federal programs made by state auditors. C. Financial statements of federal grants made by independent CPAs. D. All of the above. 3. The single audit concept refers to A. All audits of state and local government reporting entities. B. Audits to determine efficiency and economy. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. D. Financial and performance audits, and attestation engagements. 4. One of the primary purposes of the Single Audit Act of 1984 (amended in 1996) is to A. Detect fraud, waste and abuse in government entities. B. To promote the efficient and effective use of audit resources by consolidating audit activity into one organization-wide audit. C. Make audit activity legal at the federal level. D. Allow federal auditors greater access to government entities receiving federal funds. 5. A typical objective of a performance audit is for the auditor to A. Determine whether the financial statements fairly present the entity's operational results. B. Judge the appropriateness of an entity's program goals. C. Make recommendations for improving performance. D. Attest to whether the financial statements are prepared in accordance with generally accepted accounting principles. 6. Generally Accepted Government Auditing Standards (GAGAS) A. Establish the same scope as GAAS, but use wording appropriate to governmental entities instead of business organizations. B. Are set forth in the "Federal Government Red Book." C. Establish more extensive standards than those found in GAAS. D. Establish standard wording of auditor's reports on governmental financial statements. 7. An auditor would not render an opinion on a (an) A. Financial audit of financial statements. B. Performance audit. C. Audit to determine whether the entity has adhered to specific compliance requirements applicable to a major program. D. All of the above. docsity.com 8. A single audit conducted pursuant to the Single Audit Act Amendments of 1996 requires which of the following types of audits? A. Financial Audit: Yes; Performance Audit: No B. Financial Audit: No; Performance Audit: No C. Financial Audit: No; Performance Audit: Yes D. Financial Audit: Yes; Performance Audit: Yes 9. Which of the following best describes the relationship between generally accepted auditing standards (GAAS) and government auditing standards (GAS)? A. GAAS apply to independent CPA auditors; GAS apply to governmental auditors. B. Audits conducted in conformity with the yellow book may also require the auditor to conform to GAAS. C. Audits done in accordance with GAS must also be done in accordance with GAAS. D. Audits of state and local governments always required that the audit be conducted in accordance with both GAAS and GAS. 10. Which of the following federal officials is a "principal" of the Joint Financial Management Improvement Program who considers and approves or disapproves accounting and reporting standards recommended by the Federal Accounting Standards Advisory Board? A. Chair of the Federal Accounting Standards Advisory Board. B. Secretary of the Interior. C. Comptroller General. D. All of the above. 11. Which of the following statements most accurately describes the dual-track accounting system used in federal agency accounting? A. Recording internal budgetary transactions along with financial transactions with external parties. B. Use of double-entry accounting. C. Maintaining self-balancing sets of proprietary and budgetary accounts and recording the effects of transactions on both available budgetary resources and proprietary accounts, the latter measured on the accrual basis to better promote agency management. D. Keeping separate books, one on a tax basis and the other on a GAAP basis. 12. Which of the following accounts used in state and local government accounting is most like the federal budgetary account "Undelivered Orders"? A. Encumbrance. B. Expenditure. C. Appropriation. D. Reserve for Encumbrance. 13. The Comptroller General of the United States is the head of the: A. Government Accountability Office. B. Office of the Management and Budget. C. Congressional Budget Office. D. Federal Accounting Standards Advisory Board. 14. Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency? A. Apportionment, allotment, appropriation, commitment, obligation, expended appropriation. B. Allotment, commitment, obligation, expended appropriation, apportionment. C. Appropriation, apportionment, allotment, commitment, obligation, expended appropriation. D. Commitment, obligation, appropriation, apportionment, allotment, expended appropriation. 15. All of the following are characteristics of not-for-profit organizations (NPOs) that distinguish them from docsity.com 31. Responsibility for promulgating generally accepted accounting principles for nongovernmental, not-for- profit entities rests with the: A. IRS B. FASB C. GASB D. GAO E. the state in which the entity is incorporated 32. Statement of Financial Accounting Standards (SFAS) No. 117 requires the following financial reporting perspective for not-for-profit organizations A. Dual tracking B. Fund C. Aggregate D. both a. and c. E. a. and b. and c. 33. Which of the following is a 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 is taxed at corporate income tax rates. 34. A single audit would be done for: A. all governmental entities B. only certain governmental entities that meet certain criteria C. nonprofit entities that meet certain criteria D. b. and c. E. a. and c. 35. A good measure of whether the 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 total expenses spent on the program function as opposed to supporting the programs. 36. 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 colleges and universities B. The National Association of Colleges and University Business Officers set the standards with the approval of the GASB and the FASB. C. Public and private colleges and universities must comply with the AICPA Audit and Accounting Guide D. The GASB is responsible for establishing GAAP for public colleges and universities. 37. Charity service and bad debts in a public hospital that follows business-type accounting are reported A. The same, both as deductions from gross patient revenue in arriving at net patient revenue. B. The same, both are reported as expenses. C. Differently, charity service is reported as a deduction from gross patient revenue and bad debts are reported as an expense. D. Differently, charity service is merely disclosed in the notes to the financial statements, and bad debts are reported as a deduction from revenue. docsity.com 38. Contractual adjustments is properly characterized as A. An expense. B. An other financing use. C. A liability. D. A deduction from revenues. 39. Fixed dollar amount of fees per person paid periodically by a third-party payor to a health care provider A. Premium mix B. Fee-based payment C. Head-count fee D. Capitation fee E. None of the above 40. The difference between the gross patient service revenue and the negotiated payment by third-party payors in arriving at net patient service revenue A. Bad debt expenses B. Per member fee C. Contractual discount D. Member fee E. None of the above 41. A case-mix classification scheme in the Medicare program to determine reimbursement for inpatient services A. Capitation fee B. Contract fee C. DRG fee D. Combined fee E. None of the above 42. The tax exempt status for a not-for-profit organization means that: A. it is exempt from federal income tax only B. it is exempt from both federal and state income taxes C. it could be exempt from state stales taxes D. a. and c. are correct E. b. and c. are correct. 43. The Nonprofit Integrity Act of 2004 has a requirement(s) for: A. Audit committees B. Annual financial audits C. Review of executive compensation D. both a. and c. E. a. and b. and c. 44. The cornerstone of accounting and financial reporting for not-for-profit organizations is: A. accountability B. sustainability C. visibility D. c. and b. docsity.com 45. The pubic generally has access to the following records of a tax-exempt not-for-profit organization: A. tax returns B. articles of incorporation C. board minutes D. only a. and c. E. a. and b. and c. docsity.com