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Flashcards in Deck33 Deck (17):
1

When a parent-subsidiary relationship exists, consolidated financial statements are prepared in recognition of the accounting concept of:(a)Economic Entity (b) Legal Entity

(a)Economic Entity

2

What are included in support services for Nongovernmental NFP organizations?

G&A, Fundraising, and membership development

3

To be considered a minor leaseback, the PV of rentals must be less than ______% of the FV of the property.

10

4

Which of the following costs is unique to postretirement healthcare benefits? (a)Per Capita Claims (b)Service (c)Prior Service (d)Interest

(a)Per Capita Claims

5

According to GASB is Interfund Equity fundamental to public administration? Is it a component of accountability?

Yes, Yes

6

Under GNP, repciprocal transactions are from ______________.

Doing business with one another

7

Which division of the SEC is responsible for overseeing compliance of the securities acts?

Division of Corporate Finance

8

What is the paramount objective of financial reporting by state and local governments?

Accountability

9

How should a life insurance investment be reported?

Cash Surrender Value - Loans

10

Measures that indicate the accomplishments or results that occur because of the services that are provided.

Outcomes

11

What kind of a bond matures on a single date?

Term bond

12

Would encumbrances appear in an enterprise fund?

NO

13

Which is the primary form of disclosure for a parent and it's subsidiary?

Consolidated Statements

14

When an enterprise is under direction of a particular management, the financial statements will directly provide information about (a) Enterprise Performance (b) Management.

(a)Enterprise Performance - they do not directly allow an evaluation of management.

15

Which are considered ongoing or central transactions for a hospital? (a)Room and board fees from patients (b)Recovery Room Fees (c) Both

(c) Both

16

Which of the following activities should be excluded when a government's fund financial statements are converted to Government Wide Financial Statements? (a)Proprietary (b)Fiduciary (c)Government (d)Enterprise

(b)Fiduciary - Government doesn't have ownership or stake in those activities for which it acts as a trustee

17

What type of a cost is Freight-Out?

Selling Cost