Question 1

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 2

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 3

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 4

What is meant by a "unified budget"? Why are Social Security and Postal Service receipts and disbursements not included in the unified budget?

Accepted Answer

The unified budget encompasses all four

Question 5

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 6

The unified budget of the federal government 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

A federal agency established to provide direct loans for older Americans enrolled in school or college made a three-year, 3 percent direct loan of $3,000 to be repaid in three equal annual installments of $1,060.59. The prevailing Treasury rate on short- and intermediate-term securities is 6 percent.
REQUIRED:
Prepare journal entries to record the loan and the three payments. If no entry is required, write "No entry required."
Present value factors, if needed
Present value of an annuity for 3 periods @ 6% = 2.67301
Present value of an annuity for 3 periods @ 3% = 2.82861
Present value of $1, @ 6%, 3 periods = .83962
Present value of $1, @ 3%, 3 periods = .91513

Accepted Answer

a)
 @#IMG-DLM& 
(Present value of expected payment

Question 8

Which of the following is NOT one of the basic government-wide federal financial statements?

Accepted Answer

A)  Balance sheet. 
B)  Statement of operations and changes in net position. 
C)  Statement of net cost 
D)  Statement of custodial assets. 
A)  Balance sheet. 
B)  Statement of operations and changes in net position. 
C)  Statement of net cost 
D)  Statement of custodial assets.

Question 9

The FASAB has explained that government liabilities are attributable to "events." What are "events"? What types of events has FASAB identified? Give some examples of each type. When should liabilities be recognized for each type of event?

Accepted Answer

The FASAB has explained that "events" en

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

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 net cash receipts at the prevailing interest rate. 
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 net cash receipts at the prevailing interest rate. 
C)  The fair value of the loans. 
D)  No expense is recognized.

Question 12

If the U.S. Department of the Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the FASAB for reconsideration.

Accepted Answer

A) True 
 B)False

Question 13

Why is the FASAB named an "advisory board"? What happens if the GAO or the OMB rejects one of its standards?

Accepted Answer

The board is titled "advisory" because t

Question 14

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 15

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 16

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 17

Stewardship assets are long-lived assets that are not given balance sheet recognition by the federal government.

Accepted Answer

A) True 
 B)False

Question 18

One of the major problems encountered by the FASAB in setting standards for the federal government-wide financial statements is how to classify future benefit payments to social security beneficiaries. What are the underlying issues related to social security? How has the FASAB resolved the issues? How is social security information presented in federal financial statements?

Accepted Answer

In large measure the accounting controve

Question 19

Which of the following is NOT a basic financial statement for a federal agency?

Accepted Answer

A)  Balance sheet. 
B)  Statement of budgetary esources. 
C)  Statement of financing. 
D)  Statement of stewardship assets. 
A)  Balance sheet. 
B)  Statement of budgetary esources. 
C)  Statement of financing. 
D)  Statement of stewardship assets.

Question 20

Which of the following funds is/are included in the category federal trust funds?

Accepted Answer

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

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

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

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?

What is meant by a "unified budget"? Why are Social Security and Postal Service receipts and disbursements not included in the unified budget?

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

The unified budget of the federal government was originally intended to include which of the following fund types?

Which of the following is NOT one of the basic government-wide federal financial statements?

The FASAB has explained that government liabilities are attributable to "events." What are "events"? What types of events has FASAB identified? Give some examples of each type. When should liabilities be recognized for each type of event?

Federal government trust funds are

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?

If the U.S. Department of the Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the FASAB for reconsideration.

Why is the FASAB named an "advisory board"? What happens if the GAO or the OMB rejects one of its standards?

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

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?

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

Stewardship assets are long-lived assets that are not given balance sheet recognition by the federal government.

Which of the following is NOT a basic financial statement for a federal agency?

Which of the following funds is/are included in the category federal trust funds?

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

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health-Care Providers

Auditing Governments and Not-For-Profit Organizations

Filters

Exam 16: Federal Government Accounting

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

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

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?

What is meant by a "unified budget"? Why are Social Security and Postal Service receipts and disbursements not included in the unified budget?

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

The unified budget of the federal government was originally intended to include which of the following fund types?

Which of the following is NOT one of the basic government-wide federal financial statements?

The FASAB has explained that government liabilities are attributable to "events." What are "events"? What types of events has FASAB identified? Give some examples of each type. When should liabilities be recognized for each type of event?

Federal government trust funds are

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?

If the U.S. Department of the Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the FASAB for reconsideration.

Why is the FASAB named an "advisory board"? What happens if the GAO or the OMB rejects one of its standards?

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

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?

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

Stewardship assets are long-lived assets that are not given balance sheet recognition by the federal government.

Which of the following is NOT a basic financial statement for a federal agency?

Which of the following funds is/are included in the category federal trust funds?

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

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health-Care Providers

Auditing Governments and Not-For-Profit Organizations

Filters