Question

Which of the following types of entities follow FASAB standards when preparing financial statements?

1) Federal government entities
2) State government entities
3) Local government entities
4) Non-profit organizations

Answer 1

Federal government entities, state government entities, local government entities, and non-profit organizations follow FASAB standards when preparing financial statements.

Step-by-step explanation:

The entities that follow FASAB standards when preparing financial statements include federal government entities, state government entities, local government entities, and non-profit organizations.

Non-profit organizations, such as civic organizations, churches, hospitals, schools, and social clubs, are legally incorporated associations that provide goods and services to their members or participants to better their lives or improve a particular outcome, without the goal of making a profit. They contribute to other aspects of people's lives and fill a societal need.

FASAB standards, or Financial Accounting Standards Advisory Board standards, are the generally accepted accounting principles for federal government entities, state government entities, local government entities, and non-profit organizations.