Exam 14: Financial Reporting by the Federal Government

Because federal entities have both budgetary and financial reporting requirements, a dual-track accounting system is employed using budgetary and proprietary accounts.

The annual financial report of the U.S. government is prepared by the Department of the Treasury and audited by the Government Accountability Office.

Federal agencies must include a Managements' Discussion and Analysis in their financial report.

The proprietary accounts of a federal agency reflect the status of an appropriation.

Which of the following steps in the budgetary authority process occurs when a federal agency issues a purchase order?

Assume a federal agency has $ 150,000 of unobligated budgetary authority at the end of the fiscal year that must be returned to Treasury. The journal entry at the agency level to record this event in the proprietary accounts will include:

Which of the following statements is incorrect with respect to the Reconciliation of Net Operating Cost and Unified Budget Deficit Statement?

The entry to record appropriations is notable because it involves the use of account titles that are unique to the federal government. Which of the following statements is not correct?

Federal agencies must include a Statement of Cash Flows in their annual report.

Assume an outstanding account payable of a federal agency is paid. The journal entries at the agency level to record this event will include:

Which of the following statements regarding federal government reporting is not true?

Allotments is an example of which type of federal government account? Budgetary Proprietary Account Account A) $\text { Yes\quad\quad\quad\quad\quad\quad No }$ B) $\text { No } \quad\quad\quad\quad\quad\quad \text { No }$ C) $\text { Yes, } \quad\quad\quad\quad\quad\quad \text { Yes }$ D) $\text { No } \quad\quad\quad\quad\quad\quad \text { Yes }$

The Statement of Budgetary Resources for a federal agency is prepared on the accrual basis.

The account Fund Balance with Treasury is classified as an asset on a federal agency's balance sheet.

The purpose of the FASAB is to develop and issue accounting standards for federal, state and local government reporting.

Describe the purpose of the following: a) Federal government budgetary accounts b) Federal government proprietary accounts

The Statement of Operations and Changes in Net Position for the consolidated report of the federal government is prepared on the modified accrual basis of accounting.

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

Accounting standards for the federal government and its agencies are established by the Government Accountability Office.

Assume a federal agency has the following events: 1. Receives a warrant from the Treasury notifying the agency of appropriations of $21,000,000. 2. OMB apportions 1/4^th of the appropriation for the first quarter of the year. 3. The Director of the agency allots $ 4,850,000 to program units. 4. Program units place orders $ 4,800,000. 5. Supplies $ 510,000) and services $ 3,991,000) are received and paid during the first quarter. Supplies of $ 492,000 were used in the quarter. Required: Prepare any necessary journal entries to reflect the events described above. Identify whether the entry is budgetary or proprietary.