Unity University

College Business, Economics and Social Science

Department of Accounting and Finance
Government and Not for profit Accounting
Test I (15%)
Time 40 Min.
Name __________________________________ Id No _______________ Section _____________
PART I Choose the best answer from the given alternatives and put your answers in the space
provided

1. ABEBECH GOBENA, privately owned foundation, could be governed by principles issued by one
of the following Board
a. Private Accounting Foundation
b. Financial Accounting Standard Board
c. Government Accounting Standard Board
d. Private Institution Foundation

2. When maintenance of capital is desired and the unexpended budget is not meant to be
returned, which of the following fund type best describe the statement
a. Capital project fund c. Enterprise fund
b. General fund d. All except, A

3. According to Government Accounting Standard Board statement 1 financial statements are NOT
used to
a. Assist in evaluating efficiency and effectiveness
b. Compare actual financial results with legally adopted budget
c. Assist in determining compliance with finance related laws
d. Assist in measuring the success/profit of the fund

4. One of the following statement may NOT be included in the financial section of comprehensive
annual financial report
a. Cash flow statement for all types of funds
b. Budget and actual comparison for proprietary funds
c. Statement of revenue, expenditure and change in fund balance for non-expendable
fiduciary funds
d. All, Except B
5. One of the following may not be among the important questions to ask when preparing budget,
except
a. Why will we spend?
b. Where will we get the money? d. All of the above
c. How much will we spend? e. None

6. Water works project at OROMIYA region paid on behalf of water project located at GAMBELLA
region. It is the expenditure of water project located at GAMBELLA region

a. Residual equity transfer c. Operating transfer

b. Reimbursement d. Quasi external

Unity University Nov 20,2013 Gov’t accounting

 7. One of the following statement is NOT true, except
a. Proceed of general long term debt can be recorded as a revenue
b. Combining statements presents results of all funds
c. Depreciation of general fixed asset should not be recorded
d. Annual budget should be adopted by every governmental units

8. One of the following basis of accounting might be used to measure financial position and
operating conditions of state/government not for profit institutions

a. Accrual basis of Accounting c. Modified cash basis

b. Modified Accrual Basis of d. A and B
accounting
9. A government research organization which is noncommercial institution fail in _________
category

a. Governmental units c. Educational institution

b. Voluntary organization d. None
10. The following list of points explain the similarities between commercial and noncommercial
institutions
a. Matching concept d. All of the above
b. Going concern e. None
c. Business entity concept
11. Which of the following organ comes first to govern the operation of governmental institutions
a. Governmental Accounting Standard Board
b. National Committee on Government Accounting
c. National Council on Government Accounting
d. National Committee on Municipal Accounting
12. One of the following statement is true about accounting for inter fund transfer
a. The inter fund should be recorded at the time of cash receipt
b. The inter fund transfer should be recorded at the time when it arise between funds
c. There is no special accounting treatment for inter fund transfer
d. All of the above are not true
13. A kind of fund that cover its operational expenditures by the system called cost re-imbursement
basis
a. General fund c. Agency fund
b. Enterprise fund d. Internal service fund
14. One of the following inter fund transfer is called real inter fund transfer
a. Reimbursement c. Quasi external transfer
b. Residual equity transfer d. A and B
15. The following are list of functions to be performed by Financial Accounting Foundation (FAF)
a. Appoint members for financial accounting standard board and governmental accounting
standard board
b. Search finance to keep the two boards operational
c. To set rules and regulations for different countries including Ethiopia
d. All except C

ANSWERS;
1)___2)____3)____4)___5)____6)____7)___8)___9)____10)___11)___12)___13)____14)____15)____

Unity University Nov 20,2013 Gov’t accounting