Exam 17: Accounting and Reporting for the Federal Government

Describe the purpose of a management's discussion and analysis (MD&A) in the general purpose federal financial report of a federal agency.

An expended appropriation occurs when cash has been disbursed to pay for a good or service.

A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by this agency. At the time the order is placed, what is the net effect on the budgetary and proprietary track accounts?

Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts.

For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate definition. A. Apportionment B. Budgetary resources C. Expended appropriation D. Governmental assets E. Heritage assets F. Intragovernmental assets G. Stewardship investments H. Stewardship land ________1. Federal capital assets that possess educational, cultural, or natural characteristics ________2. Claims by or against a reporting entity that arise from transactions between the entity and other reporting entities ________3. Assets that arise from transactions of the federal government or an entity of the federal government with nonfederal entities ________4. Dividing a federal appropriation into amounts that are available during specific periods ________5. Federal land other than that included in general property, plant, and equipment ________6. New budgetary authority for the period plus unobligated budgetary authority carried over from the prior period and offsetting collections, if any, plus or minus any budgetary adjustments ________7. An account used when the goods or services have been received

According to FASAB, entity assets are defined as those assets arising from transactions between federal entities.

Which of the following is not a fund group used by the federal government?

Identify the office, officer, or department of the United States federal government that is responsible for each of the following: A. Appropriations. B. Apportionments. C. Allotments. D. Obligations.

Unexpended appropriations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation, or which has been obligated but not yet expended.

Compute the missing amount in the following list of proprietary accounts of a federal government agency.

Describe accounting for federal social insurance programs. Comment on the adequacy of current accounting standards in this area.

Similar to state and local governments, the federal government uses funds to demonstrate funds are being used for their intended purposes.

The "net position" of a federal agency may include all of the following components, except:

Explain the process of financial reporting of the U.S. Government as a whole. Does the federal government receive an unmodified audit opinion on its financial report?

A federal agency does not record depreciation expense.

The fund balances of a federal reporting entity should be separated into unexpended appropriations, restricted appropriations, and cumulative fund balance.

The objectives of federal financial reporting are to assist report users in evaluating budgetary integrity, operating performance, stewardship, and adequacy of systems and controls.

Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board.

When an appropriation is passed a federal agency would record entries in both the budgetary and the proprietary track accounts.

A federal agency recorded the receipt of supplies at an actual cost of $57,000. At the time the purchase orders were issued it was estimated the supplies would cost $56,000. How would this transaction be recorded in the budgetary track accounts?