Governments and Not-For-Profit Entities May Be Subject to Each of the Following

question 59

Multiple Choice

Governments and not-for-profit entities may be subject to each of the following levels of audit except:

• A) Requirements under AICPA generally accepted auditing standards.
• B) Requirements under GAO generally accepted government auditing standards.
• C) Requirements under OMB compliance standards.
• D) Requirements under the Single Audit Act.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to update accounts for accurate financial reporting.

Income Statement

A financial statement that outlines a company's revenues and expenses over a specific period, showing net profit or loss.