1. Under the modified accrual basis of accounting, a police car that is purchased would be

a.	capitalized and depreciated	c.	capitalized but not depreciated
b.	charged completely to expenditures	d.	recorded as a nonexchange transaction

2. Which of the following is NOT true? The GASB sets standards for governments and governmental not-for-profit organizations if they have one or more of the following characteristics

a.	popular election of officers	c.	a direct relationship between resources received and goods and services provided
b.	power to directly issue tax-exempt debt	d.	power to enact and enforce a tax levy