Question 1

Which of the following is not an objective identified in FASAB Statement of Accounting and Reporting Concepts No. 1 ?

Accepted Answer

A)  To assist report users in evaluating budgetary integrity. 
B)  To assist report users in evaluating the extent to which tax burdens have changed. 
C)  To assist report users in evaluating stewardship. 
D)  To assist report users in evaluating operating performance. 
A)  To assist report users in evaluating budgetary integrity. 
B)  To assist report users in evaluating the extent to which tax burdens have changed. 
C)  To assist report users in evaluating stewardship. 
D)  To assist report users in evaluating operating performance.

Question 2

Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?

Accepted Answer

A)  Apportionment, allotment, appropriation, commitment, obligation, expended appropriation. 
B)  Allotment, commitment, obligation, expended appropriation, apportionment. 
C)  Appropriation, apportionment, allotment, commitment, obligation, expended appropriation. 
D)  Commitment, obligation, appropriation, apportionment, allotment, expended appropriation. 
A)  Apportionment, allotment, appropriation, commitment, obligation, expended appropriation. 
B)  Allotment, commitment, obligation, expended appropriation, apportionment. 
C)  Appropriation, apportionment, allotment, commitment, obligation, expended appropriation. 
D)  Commitment, obligation, appropriation, apportionment, allotment, expended appropriation.

Question 3

As described in Statement of Federal Financial Accounting Concepts (SFFAC) No. 2 "Entity and Display," which of the following is an accurate list of the three perspectives from which the federal government can be viewed?

Accepted Answer

A)  Function, department, and program. 
B)  Organization, budget, and program. 
C)  Budget, program, and line-item. 
D)  Fund, activity, and account. 
A)  Function, department, and program. 
B)  Organization, budget, and program. 
C)  Budget, program, and line-item. 
D)  Fund, activity, and account.

Question 4

Cumulative results of operations 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.

Accepted Answer

A) True 
 B)False

Question 5

Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.

Accepted Answer

A) True 
 B)False

Question 6

"Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not?

Accepted Answer

Disagree. The FASAB, not the GASB, has a

Question 7

The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.

Accepted Answer

A) True 
 B)False

Question 8

Social Security is an example of a trust fund administered by the federal government.

Accepted Answer

A) True 
 B)False

Question 9

Under federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an):

Accepted Answer

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

Question 10

Which of the following is required by OMB Circular A-136 in the basic financial statements?

Accepted Answer

A)  Statement of changes in net position. 
B)  Statement of net assets. 
C)  Statement of revenues, expenditures, and changes in fund balances. 
D)  Statement of financing. 
A)  Statement of changes in net position. 
B)  Statement of net assets. 
C)  Statement of revenues, expenditures, and changes in fund balances. 
D)  Statement of financing.

Question 11

As identified by FASAB, which of the following are major user groups of federal financial reports?

Accepted Answer

A)  Congress, executives, program managers, and citizens. 
B)  Congress, executives, citizens, and municipal rating agencies. 
C)  Congress, program managers, foreign governments, and citizens. 
D)  Congress, program managers, bond rating agencies, and political parties. 
A)  Congress, executives, program managers, and citizens. 
B)  Congress, executives, citizens, and municipal rating agencies. 
C)  Congress, program managers, foreign governments, and citizens. 
D)  Congress, program managers, bond rating agencies, and political parties.

Question 12

A federal agency only records entries in the proprietary track accounts for supplies inventory.

Accepted Answer

A) True 
 B)False

Question 13

The Federal Monuments Commission began operations on October 1, 2020. Prepare journal form all entries that should be made in budgetary and proprietary accounts of the agency. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. The Congress passed, and the President signed, a one-year appropriation for fiscal year 2021 for the Monuments Commission in the amount of $30,000,000.
2. The OMB notified the agency of the following apportionments of the 2021 appropriation: first quarter, $8,000,000; second quarter, $8,000,000; third quarter, $7,000,000; and fourth quarter, $7,000,000.
3. The Commission Director allotted $1,500,000 for the operations of October 2020.
4. Commitments for goods and services not yet ordered or received were recorded in the amount of $1,300,000.
5. Purchase orders and contracts for services were recorded for the month of October 2020 in the amount of $1,250,000.

Accepted Answer

The answer of The Federal Monuments Commission began operations on...

Question 14

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 received, what is the net effect on the budgetary and proprietary track accounts?

Accepted Answer

A)  Budgetary Accounts: $14,400; Proprietary Accounts: $14,400. 
B)  Budgetary Accounts: $14,400; Proprietary Accounts: $14,800. 
C)  Budgetary Accounts: $400; Proprietary Accounts: $14,800. 
D)  Budgetary Accounts: $0; Proprietary Accounts: $14,800. 
A)  Budgetary Accounts: $14,400; Proprietary Accounts: $14,400. 
B)  Budgetary Accounts: $14,400; Proprietary Accounts: $14,800. 
C)  Budgetary Accounts: $400; Proprietary Accounts: $14,800. 
D)  Budgetary Accounts: $0; Proprietary Accounts: $14,800.

Question 15

Heritage assets are defined as beneficial investments of the federal government in items such as nonfederal physical property, human capital, and research and development.

Accepted Answer

A) True 
 B)False

Question 16

Stewardship assets are reported as a classification within the property, plant, and equipment section of the federal balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following financial statements is not required by OMB Circular A-136?

Accepted Answer

A)  Statement of budgetary resources. 
B)  Statement of cash flows. 
C)  Balance sheet. 
D)  Statement of changes in net position. 
A)  Statement of budgetary resources. 
B)  Statement of cash flows. 
C)  Balance sheet. 
D)  Statement of changes in net position.

Question 18

What is a Performance and Accountability Report (PAR)? Describe its purpose and contents.

Accepted Answer

A PAR is a consolidated report prepared

Question 19

Which of the following is not a part of the FASAB due process for establishing a federal financial accounting standard?

Accepted Answer

A)  Public comment on a discussion memorandum. 
B)  Issuing an exposure draft. 
C)  Unanimous approval by the FASAB. 
D)  Support (or lack of opposition) of the standard by the three principals (Comptroller General, Secretary of the Treasury, and Director of the Office of Management and Budget). 
A)  Public comment on a discussion memorandum. 
B)  Issuing an exposure draft. 
C)  Unanimous approval by the FASAB. 
D)  Support (or lack of opposition) of the standard by the three principals (Comptroller General, Secretary of the Treasury, and Director of the Office of Management and Budget).

Question 20

Which of the following officials has shared responsibility under federal law for establishing and maintaining a sound financial structure for the federal government?

Accepted Answer

A)  Chief Financial Officer of the Congressional Budget Office. 
B)  Chair of the Governmental Accounting Standards Board. 
C)  Secretary of the Treasury. 
D)  Chair of the Federal Accounting Standards Advisory Board. 
A)  Chief Financial Officer of the Congressional Budget Office. 
B)  Chair of the Governmental Accounting Standards Board. 
C)  Secretary of the Treasury. 
D)  Chair of the Federal Accounting Standards Advisory Board.

Which of the following is not an objective identified in FASAB Statement of Accounting and Reporting Concepts No. 1 ?

Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?

As described in Statement of Federal Financial Accounting Concepts (SFFAC) No. 2 "Entity and Display," which of the following is an accurate list of the three perspectives from which the federal government can be viewed?

Cumulative results of operations 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.

Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.

"Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not?

The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.

Social Security is an example of a trust fund administered by the federal government.

Under federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an):

Which of the following is required by OMB Circular A-136 in the basic financial statements?

As identified by FASAB, which of the following are major user groups of federal financial reports?

A federal agency only records entries in the proprietary track accounts for supplies inventory.

Heritage assets are defined as beneficial investments of the federal government in items such as nonfederal physical property, human capital, and research and development.

Stewardship assets are reported as a classification within the property, plant, and equipment section of the federal balance sheet.

Which of the following financial statements is not required by OMB Circular A-136?

What is a Performance and Accountability Report (PAR)? Describe its purpose and contents.

Which of the following is not a part of the FASAB due process for establishing a federal financial accounting standard?

Which of the following officials has shared responsibility under federal law for establishing and maintaining a sound financial structure for the federal government?

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Filters

Exam 17: Accounting and Reporting for the Federal Government

Which of the following is not an objective identified in FASAB Statement of Accounting and Reporting Concepts No. 1 ?

Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?

As described in Statement of Federal Financial Accounting Concepts (SFFAC) No. 2 "Entity and Display," which of the following is an accurate list of the three perspectives from which the federal government can be viewed?

Cumulative results of operations 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.

Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.

"Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not?

The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.

Social Security is an example of a trust fund administered by the federal government.

Under federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an):

Which of the following is required by OMB Circular A-136 in the basic financial statements?

As identified by FASAB, which of the following are major user groups of federal financial reports?

A federal agency only records entries in the proprietary track accounts for supplies inventory.

Heritage assets are defined as beneficial investments of the federal government in items such as nonfederal physical property, human capital, and research and development.

Stewardship assets are reported as a classification within the property, plant, and equipment section of the federal balance sheet.

Which of the following financial statements is not required by OMB Circular A-136?

What is a Performance and Accountability Report (PAR)? Describe its purpose and contents.

Which of the following is not a part of the FASAB due process for establishing a federal financial accounting standard?

Which of the following officials has shared responsibility under federal law for establishing and maintaining a sound financial structure for the federal government?

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Filters