Question 1

The Government Accountability Office GAO is part of which branch of the federal government

Accepted Answer

A) Executive branch. 
B) Judicial branch. 
C) Legislative branch. 
D) None of the above; it is independent of any other branch of government. 
A) Executive branch. 
B) Judicial branch. 
C) Legislative branch. 
D) None of the above; it is independent of any other branch of government.

Question 2

The U.S.Government Annual Report is prepared on which of the following bases of accounting?

Accepted Answer

A) Cash. 
B) Modified accrual. 
C) Budgetary. 
D) Accrual. 
A) Cash. 
B) Modified accrual. 
C) Budgetary. 
D) Accrual.

Question 3

Federal agencies recognize the cost of debt guarantees when it is probable that borrowers will default on their payments.

Accepted Answer

A) True 
 B)False

Question 4

FASAB requires nonexchange revenues to reported on both the accrual and the cash basis of accounting.

Accepted Answer

A) True 
 B)False

Question 5

At an international level, the IFAC Public Sectors Committee recommends preparation of cash-basis financial statements for third-world governments.

Accepted Answer

A) True 
 B)False

Question 6

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

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 7

The Financial Report of the U.S.Government is prepared on which of the following bases of accounting?

Accepted Answer

A) Cash. 
B) Modified accrual. 
C) Budgetary. 
D) Accrual. 
A) Cash. 
B) Modified accrual. 
C) Budgetary. 
D) Accrual.

Question 8

The amount of its budgeted resources that is currently available to be spent by a federal agency is its

Accepted Answer

A) Appropriation. 
B) Apportionment. 
C) Cash balance. 
D) Unencumbered obligations. 
A) Appropriation. 
B) Apportionment. 
C) Cash balance. 
D) Unencumbered obligations.

Question 9

The FASAB allows entities to value inventories held for sale at which of the following values?

Accepted Answer

A) Historical cost, using FIFO. 
B) Historical cost, using weighted average. 
C) Latest acquisition cost. 
D) All of the above. 
A) Historical cost, using FIFO. 
B) Historical cost, using weighted average. 
C) Latest acquisition cost. 
D) All of the above.

Question 10

Which of the following differentiates the accounting and reporting for federal government agencies versus state and local governmental entities?

Accepted Answer

A) State and local governments use accrual accounting in the proprietary and fiduciary funds as well as government-wide statements; federal agencies use only the cash basis of accounting. 
B) State and local governments do not account for apportionments and most do not account for allotments. 
C) The federal government uses a dual-track method of accounting for proprietary accounts and budgetary accounts; state and local governments do not use budgetary accounting. 
D) The budget is recorded in the general ledger of a state or local government, but not in a federal agency. 
A) State and local governments use accrual accounting in the proprietary and fiduciary funds as well as government-wide statements; federal agencies use only the cash basis of accounting. 
B) State and local governments do not account for apportionments and most do not account for allotments. 
C) The federal government uses a dual-track method of accounting for proprietary accounts and budgetary accounts; state and local governments do not use budgetary accounting. 
D) The budget is recorded in the general ledger of a state or local government, but not in a federal agency.

Question 11

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

Accepted Answer

A) The difference between the face value of the loan and the present value of the estimated net cash receipts. 
B) The difference between the present value of the estimated net cash receipts at the stated rate of interest and the present value of the cash receipts at the prevailing interest rates. 
C) The fair value of the loans. 
D) No expense is recognized. 
A) The difference between the face value of the loan and the present value of the estimated net cash receipts. 
B) The difference between the present value of the estimated net cash receipts at the stated rate of interest and the present value of the cash receipts at the prevailing interest rates. 
C) The fair value of the loans. 
D) No expense is recognized.

Question 12

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

Question 13

Which of the following is a true statement regarding which funds are included in the category federal trust funds?

Accepted Answer

A) Old-Age and Survivors Insurance Fund Social Security are included. 
B) Supplementary Medical Insurance Fund Medicare is included. 
C) Neither a nor b are included. 
D) Both a and b are included. 
A) Old-Age and Survivors Insurance Fund Social Security are included. 
B) Supplementary Medical Insurance Fund Medicare is included. 
C) Neither a nor b are included. 
D) Both a and b are included.

Question 14

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 principle, can be expended. 
C) Any funds designed by laws 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 principle, can be expended. 
C) Any funds designed by laws as trust funds. 
D) Composed of funds that by law are dedicated to certain activities or programs.

Question 15

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

Accepted Answer

A) It is an independent standard setting board. 
B) It is a shared jurisdiction board created by joint agreement of three federal agencies. 
C) It is an executive office function. 
D) It was created by and reports to Congress. 
A) It is an independent standard setting board. 
B) It is a shared jurisdiction board created by joint agreement of three federal agencies. 
C) It is an executive office function. 
D) It was created by and reports to Congress.

Question 16

Which of the following is a role that GAO plays in the accounting and information management policy of the United States?

Accepted Answer

A) Prescribing standards for auditing and evaluating government programs. 
B) Developing integrated accounting systems that comply with applicable accounting standards. 
C) Apportioning federal appropriations. 
D) Reviewing federal agencies' spending plans. 
A) Prescribing standards for auditing and evaluating government programs. 
B) Developing integrated accounting systems that comply with applicable accounting standards. 
C) Apportioning federal appropriations. 
D) Reviewing federal agencies' spending plans.

Question 17

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 18

FASAB requires that federal agencies capitalize certain assets.Which of the following assets should be capitalized?

Accepted Answer

A) Stewardship assets such as national parks and national forests. 
B) Assets such as weapons systems and space exploration equipment. 
C) Heritage assets that have only historical, artistic, or cultural significance. 
D) Human capital. 
A) Stewardship assets such as national parks and national forests. 
B) Assets such as weapons systems and space exploration equipment. 
C) Heritage assets that have only historical, artistic, or cultural significance. 
D) Human capital.

Question 19

Which of the following is a function of the U.S.Department of Treasury?

Accepted Answer

A) Adjudicating claims for and against the federal government. 
B) Monitoring the education of the federal budget. 
C) Overseeing the central accounting and reporting systems. 
D) Apportioning federal appropriations. 
A) Adjudicating claims for and against the federal government. 
B) Monitoring the education of the federal budget. 
C) Overseeing the central accounting and reporting systems. 
D) Apportioning federal appropriations.

Question 20

The U.S.Postal Service is accounted for in which of the following fund types?

Accepted Answer

A) General fund. 
B) Special fund. 
C) Trust fund. 
D) Revolving fund. 
A) General fund. 
B) Special fund. 
C) Trust fund. 
D) Revolving fund.

The Government Accountability Office GAO is part of which branch of the federal government

The U.S.Government Annual Report is prepared on which of the following bases of accounting?

Federal agencies recognize the cost of debt guarantees when it is probable that borrowers will default on their payments.

FASAB requires nonexchange revenues to reported on both the accrual and the cash basis of accounting.

At an international level, the IFAC Public Sectors Committee recommends preparation of cash-basis financial statements for third-world governments.

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

The Financial Report of the U.S.Government is prepared on which of the following bases of accounting?

The amount of its budgeted resources that is currently available to be spent by a federal agency is its

The FASAB allows entities to value inventories held for sale at which of the following values?

Which of the following differentiates the accounting and reporting for federal government agencies versus state and local governmental entities?

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

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

Which of the following is a true statement regarding which funds are included in the category federal trust funds?

Federal government trust funds are

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

Which of the following is a role that GAO plays in the accounting and information management policy of the United States?

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?

FASAB requires that federal agencies capitalize certain assets.Which of the following assets should be capitalized?

Which of the following is a function of the U.S.Department of Treasury?

The U.S.Postal Service is accounted for in which of the following fund types?

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 Government Accountability Office GAO is part of which branch of the federal government

The U.S.Government Annual Report is prepared on which of the following bases of accounting?

Federal agencies recognize the cost of debt guarantees when it is probable that borrowers will default on their payments.

FASAB requires nonexchange revenues to reported on both the accrual and the cash basis of accounting.

At an international level, the IFAC Public Sectors Committee recommends preparation of cash-basis financial statements for third-world governments.

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

The Financial Report of the U.S.Government is prepared on which of the following bases of accounting?

The amount of its budgeted resources that is currently available to be spent by a federal agency is its

The FASAB allows entities to value inventories held for sale at which of the following values?

Which of the following differentiates the accounting and reporting for federal government agencies versus state and local governmental entities?

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

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

Which of the following is a true statement regarding which funds are included in the category federal trust funds?

Federal government trust funds are

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

Which of the following is a role that GAO plays in the accounting and information management policy of the United States?

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?

FASAB requires that federal agencies capitalize certain assets.Which of the following assets should be capitalized?

Which of the following is a function of the U.S.Department of Treasury?

The U.S.Postal Service is accounted for in which of the following fund types?

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