Govt. / Nonprofit Accounting Questions - TRUE OR FALSE

1. The budget of an NFP organization is not integrated into the record-keeping procedures and the applicable financial statements, as it is for governmental entities.

2. NFP organizations adjust the value of their long-term debt for discounts or premiums on issuance of the debt, whereas governments list their long-term debt in the General Long-term Liabilities accounts at face value even though it may have been issued at a discount or at a premium.

3. Because they use full accrual accounting, NFPs account for depreciation. There is an exception, however, in regard to certain assets that have collection value which are preservable in their current condition, and have a claim on resources sufficient to preserve them indefinitely.