Write T if the corresponding statement is true. If the statement is false, write F and state what changes should be made to make it a true statement.
1. The need for managers to report on their accountability to resource providers has played a central role in shaping the accounting and financial reporting practices of governmental and not-for-profit organizations.
2. The FASB is assigned responsibility for setting accounting and financial reporting standards for all not-for-profit organizations.
3. Governments differ from not-for-profit and business entities by having resource providers who do not expect to receive either repayment or economic benefits proportionate to resources provided.
4. The GASB regards accountability as the cornerstone of all financial reporting in government.
5. Government-wide financial statements are intended to assist in assessing fiscal accountability.
6. The basis of accounting that focuses on when revenues are available for spending and when an obligation has been incurred to expend current financial resources is called modified accrual.
7. The financial section of a comprehensive annual financial report (CAFR) typically contains the minimum requirements for general purpose external financial reporting and additional supplementary financial information.
8. Unlike state and local governments, the federal government and its major departments and agencies are not required to prepare a management’s discussion and analysis (MD&A).
9. FASAB standards and federal government financial reporting requirements focus on reporting internal management information as well as external financial reporting.
10. FASB financial reporting standards for not-for-profit (NFP) organizations emphasize accountability for donor-restricted resources by requiring that NFPs report net assets in the three categories of permanently restricted, temporarily restricted, and unrestricted.