Question 1

The federal government is required to recognize liabilities from nonexchange transactions

Accepted Answer

A) When an exchange takes place. 
B) When the event occurs and the anticipated outflows of resources are both probable and measurable. 
C) When due. 
D) When formally acknowledged and an amount is due and payable as a result. 
A) When an exchange takes place. 
B) When the event occurs and the anticipated outflows of resources are both probable and measurable. 
C) When due. 
D) When formally acknowledged and an amount is due and payable as a result.

Question 2

Which of the following has the responsibility for auditing all federal agencies and programs?

Accepted Answer

A) OMB. 
B) FASAB. 
C) GAO. 
D) The Department of the Treasury. 
A) OMB. 
B) FASAB. 
C) GAO. 
D) The Department of the Treasury.

Question 3

FASAB standards preclude disclosure of investments in human capital in federal financial reports.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a true statement about the Federal Accounting Standards Advisory Board?

Accepted Answer

A) It is a sub-agency of the OMB. 
B) It is a shared jurisdiction board created following an agreement by three federal agencies. 
C) It is an executive office function. 
D) It was created by and reports to Congress. 
A) It is a sub-agency of the OMB. 
B) It is a shared jurisdiction board created following an agreement by three federal agencies. 
C) It is an executive office function. 
D) It was created by and reports to Congress.

Question 5

Which of the following is NOT a main section of the Financial Report of the United States Government?

Accepted Answer

A) Introductory section including letter of transmittal and MD&A. 
B) Other stewardship information section. 
C) Required supplemental information section. 
D) Statistical section. 
A) Introductory section including letter of transmittal and MD&A. 
B) Other stewardship information section. 
C) Required supplemental information section. 
D) Statistical section.

Question 6

The Government Performance and Results Act of 1993 requires federal agencies to do which of the following?

Accepted Answer

A) Develop strategic plans and operational objectives. 
B) Develop measures of performance. 
C) Report on the extent to which they have met their objectives. 
D) All of the above. 
A) Develop strategic plans and operational objectives. 
B) Develop measures of performance. 
C) Report on the extent to which they have met their objectives. 
D) All of the above.

Question 7

Which of the following is NOT a criterion for a federal government "component" to be considered a reporting entity and therefore required to issue a financial report?

Accepted Answer

A) There is a management responsible for controlling and deploying the component's outputs and outcomes and for executing its budget.It is held accountable for its performance. 
B) The component is of sufficient size and significance that its financial statements would provide a meaningful representation of its operations and financial condition. 
C) The component is of sufficient cohesiveness of operations that its financial statements would provide a meaningful representation of a specific program or type of activity. 
D) Users are interested in the information to be reported in its financial statements and could use it to make resource allocation and related decisions. 
A) There is a management responsible for controlling and deploying the component's outputs and outcomes and for executing its budget.It is held accountable for its performance. 
B) The component is of sufficient size and significance that its financial statements would provide a meaningful representation of its operations and financial condition. 
C) The component is of sufficient cohesiveness of operations that its financial statements would provide a meaningful representation of a specific program or type of activity. 
D) Users are interested in the information to be reported in its financial statements and could use it to make resource allocation and related decisions.

Question 8

Which of the following is a responsibility of the Office of Management and Budget?

Accepted Answer

A) Assisting the president in preparing the federal budget. 
B) Resolving bid protests that challenge government contract awards. 
C) Keeping track of monetary assets and liabilities. 
D) Arranging for audits of federal agencies 
A) Assisting the president in preparing the federal budget. 
B) Resolving bid protests that challenge government contract awards. 
C) Keeping track of monetary assets and liabilities. 
D) Arranging for audits of federal agencies

Question 9

When the federal government makes a direct loan at an interest rate below the prevailing Treasury rate a subsidized loan),an asset should be recorded for which of the following amounts?

Accepted Answer

A) The face amount of the loan. 
B) The present value of the future principal and interest payments discounted at the stated rate. 
C) The present value of the future principal and interest payments discounted at the comparable Treasury rate. 
D) No asset should be recorded. 
A) The face amount of the loan. 
B) The present value of the future principal and interest payments discounted at the stated rate. 
C) The present value of the future principal and interest payments discounted at the comparable Treasury rate. 
D) No asset should be recorded.

Question 10

Federal government trust funds are

Accepted Answer

A) Composed of funds restricted by the donor/contributor. 
B) Like endowment funds-only the income,not the principal,can be expended. 
C) Any funds designated by law as trust funds. 
D) Composed of funds that by law are dedicated to certain activities or programs. 
A) Composed of funds restricted by the donor/contributor. 
B) Like endowment funds-only the income,not the principal,can be expended. 
C) Any funds designated by law as trust funds. 
D) Composed of funds that by law are dedicated to certain activities or programs.

Question 11

Which of the following categories is included in the Objectives of Federal Financial Reporting?

Accepted Answer

A) Operating performance. 
B) Congressional performance. 
C) Executive performance. 
D) Audit performance. 
A) Operating performance. 
B) Congressional performance. 
C) Executive performance. 
D) Audit performance.

Question 12

The allowance for unrealized holding gains that appears in the cost of goods sold section of a federal financial statement effectively does which of the following?

Accepted Answer

A) Adjusts the latest acquisition cost inventory valuation to the historical cost valuation. 
B) Increases the cost of goods sold by the increase in market value of the inventory. 
C) Decreases the cost of goods sold by the increase in market value of the inventory. 
D) Adjusts the historical cost valuation to the latest acquisition cost inventory valuation. 
A) Adjusts the latest acquisition cost inventory valuation to the historical cost valuation. 
B) Increases the cost of goods sold by the increase in market value of the inventory. 
C) Decreases the cost of goods sold by the increase in market value of the inventory. 
D) Adjusts the historical cost valuation to the latest acquisition cost inventory valuation.

Question 13

The FASAB requires that federal government agencies accrue nonexchange revenues when a specifically identifiable,legally enforceable claim to resources arises,to the extent that collection is probable and the amount is measurable.Thus,fines and penalties should be accrued

Accepted Answer

A) Upon expiration of the period during which the offender may contest a court summons. 
B) When the offender pays the fine before a court date. 
C) When the court imposes a fine. 
D) Any of the above would meet the criteria. 
A) Upon expiration of the period during which the offender may contest a court summons. 
B) When the offender pays the fine before a court date. 
C) When the court imposes a fine. 
D) Any of the above would meet the criteria.

Question 14

Which of the following is a NOT a true statement with regard to accounting and reporting for federal government agencies versus accounting and reporting for state and local governments?

Accepted Answer

A) In their respective government-wide statements,state and local governments use the accrual basis of accounting whereas federal agencies use the cash basis of accounting. 
B) State and local governments record appropriations whereas federal agencies record apportionments. 
C) Federal agencies use a dual-track method of accounting for proprietary accounts and budgetary accounts;state and local governments use both budgetary and proprietary accounts only in governmental funds. 
D) The budget is recorded in the general ledger of a state or local government,but not in the general ledger of a federal agency. 
A) In their respective government-wide statements,state and local governments use the accrual basis of accounting whereas federal agencies use the cash basis of accounting. 
B) State and local governments record appropriations whereas federal agencies record apportionments. 
C) Federal agencies use a dual-track method of accounting for proprietary accounts and budgetary accounts;state and local governments use both budgetary and proprietary accounts only in governmental funds. 
D) The budget is recorded in the general ledger of a state or local government,but not in the general ledger of a federal agency.

Question 15

Amounts due to social security beneficiaries should be "booked" recorded as a liability)

Accepted Answer

A) As beneficiaries earn benefits. 
B) When beneficiaries reach the eligibility age for benefits.. 
C) When benefits become due and payable. 
D) When the government formally acknowledges that benefits are due and payable. 
A) As beneficiaries earn benefits. 
B) When beneficiaries reach the eligibility age for benefits.. 
C) When benefits become due and payable. 
D) When the government formally acknowledges that benefits are due and payable.

Question 16

Natural disasters,such as hurricanes,may result in recognized liabilities of the federal government.

Accepted Answer

A) True 
 B)False

Question 17

The International Public Sector Accounting Standards Board has issued standards calling for which of the following?

Accepted Answer

A) The capitalization and depreciation of governments' infrastructure assets. 
B) The expensing of borrowing costs no earlier than when cash is disbursed. 
C) The recognition of inventories as an expense using the purchases method. 
D) The preparation of budgets on the accrual basis. 
A) The capitalization and depreciation of governments' infrastructure assets. 
B) The expensing of borrowing costs no earlier than when cash is disbursed. 
C) The recognition of inventories as an expense using the purchases method. 
D) The preparation of budgets on the accrual basis.

Question 18

Federal government accounting standards are the responsibility of which federal government agency?

Accepted Answer

A) The Department of the Treasury. 
B) The Office of Management and Budget. 
C) The Government Accountability Office. 
D) All of the above. 
A) The Department of the Treasury. 
B) The Office of Management and Budget. 
C) The Government Accountability Office. 
D) All of the above.

The federal government is required to recognize liabilities from nonexchange transactions

Which of the following has the responsibility for auditing all federal agencies and programs?

FASAB standards preclude disclosure of investments in human capital in federal financial reports.

Which of the following is a true statement about the Federal Accounting Standards Advisory Board?

Which of the following is NOT a main section of the Financial Report of the United States Government?

The Government Performance and Results Act of 1993 requires federal agencies to do which of the following?

Which of the following is NOT a criterion for a federal government "component" to be considered a reporting entity and therefore required to issue a financial report?

Which of the following is a responsibility of the Office of Management and Budget?

When the federal government makes a direct loan at an interest rate below the prevailing Treasury rate a subsidized loan),an asset should be recorded for which of the following amounts?

Federal government trust funds are

Which of the following categories is included in the Objectives of Federal Financial Reporting?

The allowance for unrealized holding gains that appears in the cost of goods sold section of a federal financial statement effectively does which of the following?

The FASAB requires that federal government agencies accrue nonexchange revenues when a specifically identifiable,legally enforceable claim to resources arises,to the extent that collection is probable and the amount is measurable.Thus,fines and penalties should be accrued

Which of the following is a NOT a true statement with regard to accounting and reporting for federal government agencies versus accounting and reporting for state and local governments?

Amounts due to social security beneficiaries should be "booked" recorded as a liability)

Natural disasters,such as hurricanes,may result in recognized liabilities of the federal government.

The International Public Sector Accounting Standards Board has issued standards calling for which of the following?

Federal government accounting standards are the responsibility of which federal government agency?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Filters

Exam 17: Federal Government Accounting

The federal government is required to recognize liabilities from nonexchange transactions

Which of the following has the responsibility for auditing all federal agencies and programs?

FASAB standards preclude disclosure of investments in human capital in federal financial reports.

Which of the following is a true statement about the Federal Accounting Standards Advisory Board?

Which of the following is NOT a main section of the Financial Report of the United States Government?

The Government Performance and Results Act of 1993 requires federal agencies to do which of the following?

Which of the following is NOT a criterion for a federal government "component" to be considered a reporting entity and therefore required to issue a financial report?

Which of the following is a responsibility of the Office of Management and Budget?

When the federal government makes a direct loan at an interest rate below the prevailing Treasury rate a subsidized loan),an asset should be recorded for which of the following amounts?

Federal government trust funds are

Which of the following categories is included in the Objectives of Federal Financial Reporting?

The allowance for unrealized holding gains that appears in the cost of goods sold section of a federal financial statement effectively does which of the following?

The FASAB requires that federal government agencies accrue nonexchange revenues when a specifically identifiable,legally enforceable claim to resources arises,to the extent that collection is probable and the amount is measurable.Thus,fines and penalties should be accrued

Which of the following is a NOT a true statement with regard to accounting and reporting for federal government agencies versus accounting and reporting for state and local governments?

Amounts due to social security beneficiaries should be "booked" recorded as a liability)

Natural disasters,such as hurricanes,may result in recognized liabilities of the federal government.

The International Public Sector Accounting Standards Board has issued standards calling for which of the following?

Federal government accounting standards are the responsibility of which federal government agency?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Filters