5) Which of the following is not specifically identified in the GAAP hierarchy for state and local
governments?
A) AICPA Industry Audit and Accounting Guides
B) GASB Technical Bulletins
C) GASB Implementation Guides
D) GAO's Yellow Book
E) AICPA Practice Bulletins
F) All of the above are specifically identified in the state and local government hierarchy.
Answer: D
6) Which of the following statements is false?
A) The power to tax is unique to governments.
B) Taxation is a nonexchange transaction.
C) Governmental entities may not finance a function or service with both a user fee and tax
revenues.
D) All of the above statements are true statements.
E) Both items B and C are false statements.
Answer: C