multiple choice

QUESTION 1

1. State and local governments use ____________ accrual to record the transactions in their enterprise funds and ____________ accrual to record the transactions in their governmental funds.

		Blank 1: full, Blank 2: full
		Blank 1: modified, Blank 2: modified
		Blank 1: full, Blank 2: modified
		Blank 1: modified, Blank 2: full

QUESTION 2

1. Under US GAAP, nonprofit organizations use _________ accrual to record the transactions in their financial statements

		Full
		Modified
		Both
		None of the above

QUESTION 3

1. Under modified accrual accounting, a/an ___________ is recorded when a long-term (capital) asset is acquired.

		No transaction
		Asset
		Expense
		Expenditure

QUESTION 4

1. Under full accrual accounting, a/an ___________ is recorded when a long-term (capital) asset is acquired.

		No transaction
		Asset
		Expense
		Expenditure

QUESTION 5

1. Under full accrual accounting, how does an organization record a bad debt expense?

		No transaction is recorded
		Both assets and net assets decrease.
		Both assets and liabilities increase.
		Both assets and net assets increase

QUESTION 6

1. Under the full accrual basis of accounting, which one of the following statements about recognizing revenues is false?

		The resources must be earned
		The dollar value of the resources must be measured
		The resources must be available in the current fiscal year
		The services/products must be provided