Solution Manual for Governmental and Nonprofit Accounting 10th Edition by Freeman

1.

Governmental Accounting Standard Board (GASB) is the body responsible for setting standards for accounting and reporting of financial statements of state and local government entities including government nonprofit organizations.

Therefore, the correct option is.

2.

GASB is the body responsible for setting standards for all state and local government entities including government colleges and universities. But, for nongovernment colleges and universities FASB (Financial Accounting Standards Board) is responsible for setting the standards.

Therefore, the correct option is.

3.

Governmental (expendable) fund accounting entity includes assets, related liabilities, and changes in net assets that are expended for non-business type activities.

Therefore, the correct option is.

4.

When an entity acquires a capital asset (equipment) it is considered as expenditure in the year in which it is acquired, and not as expenses. Hence, they will differ.

Therefore, the correct option is.

5.

In governmental entities, fund budgets are adopted for the fiscal year, and the expenditures are contained within the limit established by the budget.

Therefore the correct option is.

6.

A fund is an accounting entity used for a particular purpose and hence it cannot be used in one year only and each year new fund may not be established for that purpose.

Therefore, the correct option is.

7.

For state and local governments, GASB interpretations are considered to be the most authoritative guidance for their financial reporting.

Therefore, the correct option is.

8.

Unlike a commercial organization, in governmental and nonprofit organization there is no direct exchange values of the resource provided and benefits received for an individual.

Therefore, the correct option is.

9.

A semi-professional baseball team is considered to act to benefit the team as a whole and hence cannot identify as a nonprofit organization.

Therefore, the correct option is.

10.

Governmental and nonprofit organization has scarce resources like taxes, grants, fees; hence, stringent budgetary allocations are made for different uses.

Therefore, the correct option is.