Exam 16: Federal Government Accounting

Under FASAB standards, nonexchange revenues do NOT include

A federal agency was established to provide loan guarantees for students. At the beginning of Year 1 the agency guarantees $100,000 of student loans. The payments that the agency estimates it will have to make to lenders as a result of student defaults are as listed below. The agency uses a discount rate of 6 percent. REQUIRED: Prepare the necessary journal entries to record the loan guarantee expense in Year 1 and the payment to the lenders in Year 2 of $400 on defaulted loans. If no entry is required, write "No entry required."

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

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

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

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

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

The amount of its budgeted resources that a federal agency currently has available for spending is its

The federal government recognizes social insurance commitments (e.g. social security) to beneficiaries as liabilities only when payments are due.

The United States Government Combined Statement of Receipts, Outlays, and Balances is prepared on which of the following bases of accounting?

All members of the FASAB are federal employees.

Federal operations are accounted for in four types of funds. Which of the following is one of the types of funds used?

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

When should federal entities recognize liabilities for natural disasters?

The unified budget of the federal government excludes Social Security, which is considered "off-budget."

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

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

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 government capital expenditures can be accounted for in which of the federal funds?

The federal government's general fund reports the following transactions during 2017. REQUIRED: Prepare journal entries to record each of these transactions. If no entry is required, write "No entry required." a. The general fund contracts with a construction firm to build an Afghan and Iraqi war memorial based on a design selected by the Afghan and Iraqi War Veterans Commission. The estimated cost of the project is $3.5 million. b. The general fund makes a $750,000 progress payment on the Afghan and Iraqi War Memorial contract. c. The general fund purchases new window treatments for the living areas of the White House. The cost is $650,000. d. The general fund reviews and accepts a design for the 2018 White House Christmas ornament and is billed $500,000 for the design cost. e. The general fund contracts for the manufacture of 1.5 million 2018 Christmas ornaments. The manufacturing cost for each ornament is $2.00. The ornaments are paid for and will be available for sale in the White House beginning in August 2018. f. The general fund elects to record its inventory of assets held for sale at historical cost.