ANSWER TRUE OR FALSE

1. Contribution revenue reported by nonprofit organizations is dissimilar to tax revenues reported by governments in that contributions to nonprofit organizations are nonexchange transactions.
2. As a result of the 2020 census, the number of seats in the House of Representatives occupied by members elected from Illinois will decrease from 18 to 16 when the mid-term elections are held in 2022.
3. Contribution revenue reported by nonprofit organizations is dissimilar to tax revenues reported by governments in that contributions to nonprofit organizations are voluntary transactions.
4. Patient service revenue reported by nonprofit hospitals is similar to sales revenues reported by for-profit businesses in that patient service revenue results from voluntary exchange transactions.
5. Profit centers are evaluated by state and local governments in order to measure the effectiveness and/or the efficiency of resources spent to provide services to citizens.
6. Financial reporting for governments must demonstrate compliance with legal budgets and applicable laws and regulations, management’s accountability for the resources entrusted to the government, and compliance with donor restrictions.
7. The income from selling girl scout cookies is not taxed because one of the missions of the girl scouts is to prepare future entrepreneurs.
8. According to the Internal Revenue Code, donations to 501 (c) (3) and 501 (c) (10) organizations are deductible by the donors as itemized deductions on their 1040 tax returns.
9. One way to reduce the high tax burden on Illinois residents is to consolidate general purpose governments, like counties and villages.
10. The State of Illinois spends more money on k-12 education that it does on medicaid.
11. Taxes on cigarettes and alcoholic beverages are viewed as “sin taxes” based on the belief that people should not smoke and drink alcoholic beverages.
12. The two major tax revenues for the State of Illinois come from income and property taxes.
13. Although the fiscal condition of the State of Illinois is not very good, the State is not permitted by federal law to declare bankruptcy.
14. Resources reported in the financial statements of fiduciary funds do not belong to the government.
15. Under the modified accrual basis of accounting, revenues are recognized in the period that they become susceptible to accrual—that is, when cash is received and used to pay for expenditures of the current fiscal period.
16. A State tollway is an example of an enterprise fund.
17. Villages, cities, and counties in Illinois are general purpose governments.
18. Guidance on the content and format for the Comprehensive Annual Financial Report that is issued by state and local governments is prescribed by the Government Finance Officers Association (GFOA).
19. On the government-wide financial statements, enterprise funds and internal service funds are reported as business-type activities.
20. On the government-wide financial statements, governmental activities report the economic resources measurement focus.
21. The focus of the financial statements of fiduciary funds is on current financial resources.
22. The issue of when resources should be reported in the financial statements of funds is a basis of accounting concern.
23. The Certificate of Achievement for Excellence in Financial Reporting is awarded to a state or local government by the Government Finance Officers Association.
24. A statement of cash flows is reported for enterprise and internal service funds.
25. The government-wide financial statements report the economic resources measurement focus and the accrual basis of accounting.
26. Resources flowing into and out of a fund means that the fund is an accounting entity.
27. On the government-wide financial statements, three types of activities are reported: governmental, business-type, and fiduciary type.
28. The issue of what resources should be reported in the financial statements of funds is a measurement focus concern.
29. According to the Governmental Accounting Standards Board, there are three fund categories and eleven fund types.
30. Under the accrual basis of accounting, revenues are recognized when they are both measurable and available to finance expenditures of the current period.
31. In Illinois, 25% of the 6.25% state sales tax is remitted back to cities, villages, and counties in Illinois.

Answer rating: 100% (QA)

True Non profit organizations report contribution revenue which is money received from donors while governments report tax revenue which is money collected from taxpayers Contributions are classified ... View the full answer