ACG4501 Chapters 01 - Chapter 06 Midterm Review

Question 1

Provide four examples of governmental entities

Answer 1

• Federal government
• General-purpose political subdivisions (states, counties, cities, and towns)
• Special-purpose political subdivisions (such as school districts)
• Public Corporations and bodies corporate and political (such as state-operated toll roads and toll bridges.

Question 2

Governmental entities such as states, counties, cities, and towns.

Answer 2

General-purpose political subdivisions

Question 3

Governmental entities such as school districts

Answer 3

Special-purpose political subdivisions

Question 4

Governmental entities such state-operated toll roads and toll bridges.

Answer 4

Public Corporations and bodies corporate and political

Question 5

Organizations created by government are governmental if the possess one or more of what type of characteristics?

Answer 5

1) their officers are popularly elected or appointed or approved by governmental officials
2) they posses the power to enact and enforce a tax levy
3) they hold the power to directly issue debt whose interest is exempt from federal taxation.
4) they face the potential that a government might dissolve them unilateral and assume their assets and liabilities

Question 6

Distinguish not-for-profit organizations from business enterprises.

Answer 6

Not-for-profit organizations:

• receive contributions of significant amounts of resources from resource providers who do not expect equivalent pecuniary return;
• operate for purposes other than to provide goods and services at a profit
• lack ownership interests like those of a business enterprise.

Question 7

Governmental Accounting Standards Board (GASB)

Answer 7

the accounting standards-setting body for state and local government