Question

TER 1 The Government and Not-for-Profit Environment 5. The organization responsible for setting accounting standards for state and local governments is the a. FASB b. GASB c. FASAB d. AICPA 6. The number of governmental units in the United States is approximately a. 900 b. 9,000 с. 90,056 d. 900,000 7. Governments differ from businesses in that they a. Do not raise capital in the financial markets b. Do not necessarily engage in transactions in which they "sell" goods or services c. Are not required to prepare annual financial reports d. Do not issue common stock 8. Interperiod equity refers to a condition whereby a. Total tax revenues b. Taxes are distributed fairly among all taxpayers, regardless of income level c. Current-year revenues are sufficient to pay for current-year services d. Current-year revenues cover both operating and capital expenditures are approximately the same from year to year

Answer 1

Answer to Question - 5 :- Option - B.

GASB  is responsible for setting there accounting standards for the both state and local governments.

Answer to Question - 6 :- Option - C (90,056)

90,056  governmental units are present in United States.

Answer to Question - 7 :- Option - D.

Government don't issue common stock where as to run a business Funds can be raised through issue of common stock.

Answer to Question - 8 :- Option - C.

Interperiod equity refers to condition where by the current year revenues are sufficient to pay for current year services.