Question 1

Military assets are required to be capitalized and depreciated until war is declared.

Accepted Answer

A) True 
 B)False

Question 2

If the federal Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the Board for reconsideration.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT a main section of the Financial Report of the U.S.Government?

Accepted Answer

A) Introductory Section including letter of transmittal and MD&A. 
B) Stewardship Section. 
C) Supplemental Information Section. 
D) Statistical Section. 
A) Introductory Section including letter of transmittal and MD&A. 
B) Stewardship Section. 
C) Supplemental Information Section. 
D) Statistical Section.

Question 4

The federal agency balance sheet and statement of net cost are prepared on the full accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT a criterion for a federal "component" to be considered a reporting entity?

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 6

The Unified Federal Budget was originally intended to include which of the following fund types?

Accepted Answer

A) General fund, all special funds, all trust funds, and all revolving funds. 
B) General fund, all special funds, some trust funds, and all revolving funds. 
C) General fund, some special funds, some trust funds, and all revolving funds. 
D) General fund, all special funds, and all revolving funds. 
A) General fund, all special funds, all trust funds, and all revolving funds. 
B) General fund, all special funds, some trust funds, and all revolving funds. 
C) General fund, some special funds, some trust funds, and all revolving funds. 
D) General fund, all special funds, and all revolving funds.

Question 7

When the federal government guarantees a loan made by a private lender, the federal government should record a liability for which of the following amounts?

Accepted Answer

A) The face amount of the loan. 
B) The present value of the anticipated payments to the private lender discounted at the government agency's rate. 
C) The present value of the anticipated payments to the private lender discounted at the lender's rate. 
D) No liability should be recorded. 
A) The face amount of the loan. 
B) The present value of the anticipated payments to the private lender discounted at the government agency's rate. 
C) The present value of the anticipated payments to the private lender discounted at the lender's rate. 
D) No liability should be recorded.

Question 8

Federal social insurance liabilities e.g.social security to beneficiaries are recognized only when due.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following federal government accounting terms is most similar to an encumbrance, as that term is used in state and local government accounting?

Accepted Answer

A) Apportionment. 
B) Allotment. 
C) Commitment. 
D) Obligation. 
A) Apportionment. 
B) Allotment. 
C) Commitment. 
D) Obligation.

Question 10

When a federal agency must have an independent audit which of the following can perform that audit?

Accepted Answer

A) OMB. 
B) The agency's inspector general. 
C) GAO. 
D) The U.S.Treasury Department. 
A) OMB. 
B) The agency's inspector general. 
C) GAO. 
D) The U.S.Treasury Department.

Question 11

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 12

Which of the following is a unique characteristic of the federal government that necessitates special accounting and reporting practices?

Accepted Answer

A) The types of its expenditures. 
B) The size of its obligations. 
C) The extent of its powers. 
D) The range of its influence. 
A) The types of its expenditures. 
B) The size of its obligations. 
C) The extent of its powers. 
D) The range of its influence.

Question 13

The federal government is required to recognize liabilities on 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.

Military assets are required to be capitalized and depreciated until war is declared.

If the federal Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the Board for reconsideration.

Which of the following is NOT a main section of the Financial Report of the U.S.Government?

The federal agency balance sheet and statement of net cost are prepared on the full accrual basis of accounting.

Which of the following is NOT a criterion for a federal "component" to be considered a reporting entity?

The Unified Federal Budget was originally intended to include which of the following fund types?

When the federal government guarantees a loan made by a private lender, the federal government should record a liability for which of the following amounts?

Federal social insurance liabilities e.g.social security to beneficiaries are recognized only when due.

Which of the following federal government accounting terms is most similar to an encumbrance, as that term is used in state and local government accounting?

When a federal agency must have an independent audit which of the following can perform that audit?

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?

Which of the following is a unique characteristic of the federal government that necessitates special accounting and reporting practices?

The federal government is required to recognize liabilities on nonexchange transactions

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

Military assets are required to be capitalized and depreciated until war is declared.

If the federal Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the Board for reconsideration.

Which of the following is NOT a main section of the Financial Report of the U.S.Government?

The federal agency balance sheet and statement of net cost are prepared on the full accrual basis of accounting.

Which of the following is NOT a criterion for a federal "component" to be considered a reporting entity?

The Unified Federal Budget was originally intended to include which of the following fund types?

When the federal government guarantees a loan made by a private lender, the federal government should record a liability for which of the following amounts?

Federal social insurance liabilities e.g.social security to beneficiaries are recognized only when due.

Which of the following federal government accounting terms is most similar to an encumbrance, as that term is used in state and local government accounting?

When a federal agency must have an independent audit which of the following can perform that audit?

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?

Which of the following is a unique characteristic of the federal government that necessitates special accounting and reporting practices?

The federal government is required to recognize liabilities on nonexchange transactions

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