$17.$ A regulatory agency would use the external financial statements of a local government for which of the following purposes?

a$.$ To ensure that the entity is spending and receiving resources in accordance with laws, regulations or policies.

b$.$ To determine how resources should be allocated.

c$.$ To exercise general oversight responsibility.

d$.$ To do all of the above.

$18.$ A primary tool of both governments and not$-$for$-$profit to acquire funds to finance long$-$term projects is

a$.$ Levy of special purpose tax.

b$.$ Have a city$-$wide gala.

c$.$ Obtain line of credit on current assets.

d$.$ Issue bonds to individuals and institutional investors.

$19.$ Which of the following objectives is considered the cornerstone of financial reporting by a state or local government?

a$.$ Accountability.

b$.$ Budgetary compliance.

c$.$ Interperiod equity.

d$.$ Service efforts and accomplishments.

$20.$ Which of the following are objectives of financial reporting by state and local governments as established by the GASB?

i$.$ Accountability

ii$.$ Evaluation of legislative results

iii. Level of service and ability to meet obligations

a$.$ I only

b$.$ II only

c$.$ I and III

d$.$ I, II and III

$21.$ Which of the following is an objective of financial reporting by nongovernmental not$-$for$-$profit entities as established by the FASB?

a$.$ Assessing the types of services provided and the need for those services.

b$.$ Assessing the services provided and the entity$$s ability to earn a profit.

c$.$ Making rational decisions about the allocation of resources to those organizations.

d$.$ Assessing how managers have managed personnel.

$$

$22.$ As used by the GASB, interperiod equity refers to which of the following?

a$.$ Demonstrate compliance with finance$-$related contractual requirements.

b$.$ Provide information to determine whether the constituents pay for what they receive.

c$.$ Demonstrate whether resources were obtained and used in accordance with the government$$s legally adopted budget.

d$.$ Provide information to assist users in assessing the government$$s economy, efficiency, and effectiveness.

$23.$ Given a specific set of data, the basis of accounting selected by or imposed on a government will impact which of the following the LEAST?

a$.$ Determining whether the government has a balanced budget.

b$.$ Determining whether the government has the ability to issue debt.

c$.$ Determining whether certain economic events occurred.

d$.$ Determining the annual payments to a government$-$sponsored pension plan.

$24.$ The basis of accounting selected by or imposed on a government can influence which of the following?

a$.$ A decision to contract$-$out a specific service rather than provide that service itself.

b$.$ The amount of annual contribution to keep pension fully funded.

c$.$ The amount that is available to spend on a donor$-$specified project or service.

d$.$ All of the above.

$25.$ The Governmental Accounting Standards Board is the primary standard$-$setting body for:

a$.$ All governments.

b$.$ All state and local governments.

c$.$ All governments and all not$-$for$-$profit entities.

d$.$ All state and local governments and all not$-$for$-$profit entities.

$26.$ Under certain circumstances a government might use standards established by which of the following standard$-$setting bodies?

a$.$ GASB.

b$.$ FASB.

c$.$ AICPA.

d$.$ All of the above.

$27.$ The primary standard$-$setting body for accounting and financial reporting by a state$-$supported college or university is:

a$.$ GASB.

b$.$ FASB.

c$.$ AICPA.

d$.$ All of the above.

$28.$ In descending order, the hierarchy of GAAP applicable to a church$-$owned college may be:

a$.$ FASB Statements and Interpretations, AICPA Accounting Research Bulletins, Accounting Principles Board Opinion, FASB Technical Bulletins, AICPA Industry Audit Guides, FASB Implementation Guides, other accounting literature$$including GASB standards.

b$.$ FASB Statements and Interpretations, GASB standards, AICPA Practice Bulletins $($if cleared by FASB$).$

c$.$ GASB Statements and Interpretations, AICPA Industry Audit Guides, GASB Implementation Guides, other accounting literature$$including FASB standards.

d$.$ GASB Statements and Interpretations, GASB Technical Bulletins, AICPA Industry Audit Guides, AICPA Practice Bulletins $($if cleared by GASB$),$ GASB Implementation Guides, other accounting literature$$including FASB standards.

$29.$ Which of the following entities was a principal in creating the FASAB?

a$.$ U$.$S$.$ Congress.

b$.$ Office of Management and Budget.

c$.$ Governmental Accounting Standards Board.

d$.$ Securities and Exchange Commission.

$30.$ The purpose of the FASAB is to establish accounting standards for

a$.$ Not$-$for$-$profit entities.

b$.$ Federal government.

c$.$ All governments.

d$.$ Non$-$federal governments.