Question

1

Exercises 4. If the GASB has not issued a pronouncement on a specific issue, which of the following is true with respect to FASB pronouncements? a. They would automatically govern b. They could be taken into account but would have no higher standing than other accounting literature c. They are irrelevant d. They could be taken into account by the reporting entity but only if disclosure is made in notes to the financial statements The FASB is to the GASB as a. A brother is to a sister b. A father is to a son c. A son is to a father d. An aunt is to a niece 5. 6. Standards promulgated by the FASB are most likely to be adhered to by which of the following governmental units? a. A police department b. A public school c. An electric utility d. A department of highways 7. Which of the following practices is most likely to undermine interperiod equity? a. Paying for a new school building out of current operating funds b. Paying the administrative staff of a school out of current operating funds c. Issuing 20-year bonds to finance construction of a new highway d. Recognizing gains and losses on marketable securities as prices increase and decrease

Answer 1

Answer to Question - 4 :- Option - B.

They could be taken into account but would have no higher standing than other accounting literature.

Answer to Question -5 :- Option - A.

The FASB is to the GASB as a brother is to a sister.

Answer to Question - 6 :- Option - C.

An electric utility is the standard promulgated to the by the FABS and not be adhered.

Answer to Question - 7 :- Option - A.

Paying for a new school building out of a current operating fund's is the practice is most likely to undermine interperiod equity.