Question 1

Assume a federal agency has the following events: 1.Receives a warrant from the Treasury notifying the agency of appropriations of $16,000,000.2.OMB apportions 1/4^th of the appropriation for the first quarter of the year.3.The Director of the agency allots $ 3,960,000 to program units.4.Program units place orders $ 3,712,000.5.Supplies ($ 500,000)and services ($ 2,975,000)are received and paid during the first quarter.Supplies of $ 417,000 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.

Accepted Answer

The answer of Assume a federal agency has the following...

Question 2

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

Accepted Answer

A)  Apportionment 
B)  Appropriation 
C)  Allotment 
D)  Obligation

Question 3

Assume a federal agency receives supplies that had been previously ordered that will be used to support a federal program.The journal entries at the agency level to record this event will include:

Accepted Answer

A)  a credit to a liability account such as Accounts Payable 
B)  a debit to the account Expended Appropriations 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Assume a federal agency prepared the following journal entries during the first quarter of the year.Prepare a schedule showing the status of the appropriation at the end of the first quarter.

Accepted Answer

The answer of Assume a federal agency prepared the following...

Question 6

Which of the following is responsible for preparing the federal government's consolidated financial statements?

Accepted Answer

A)  Department of Treasury 
B)  Congressional Budget Office 
C)  Office of Management and Budget 
D)  Government Accountability Office

Question 7

Which of the following is not required in a federal agency's financial report?

Accepted Answer

A)  Management's Discussion and Analysis 
B)  Notes to the Financial Statements 
C)  Required Supplemental Information 
D)  Budgetary Comparison Schedule

Question 8

Which of the following organizations is (are)part of the executive branch of the federal government?

Accepted Answer

A)  Department of Treasury 
B)  Office of Management and Budget 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts are used to display the difference between assets and liabilities in a federal agency Balance Sheet?

Accepted Answer

A)  Unrestricted Net Assets, Restricted Net Assets, and Invested in Capital Assets Net of Related Debt. 
B)  Unassigned, Assigned, Committed, Restricted and Nonspendable fund balance. 
C)  Unrestricted, Temporarily Restricted, and Permanently Restricted Net Assets 
D)  Unexpended Appropriations and Cumulative Results of Operations

Question 11

Which of the following is (are)true regarding Federal Accounting Standards Advisory Board?

Accepted Answer

A)  The Board is called "Advisory" because Statements issued by the board are recommended accounting standards but are not "level A GAAP" for federal agencies 
B)  Statements issued by the board are recognized as the highest level of authoritative standard for federal government entities 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 12

Assume a spending bill has been passed by Congress and signed by the President.The journal entries at the agency level to record this event will include:

Accepted Answer

A)  a debit to the account Unexpended Appropriations 
B)  a debit to the account Unapportioned Authority 
C)  a debit to the account Fund Balance with Treasury 
D)  None of the above

Question 13

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 entries at the agency level to record this event will include:

Accepted Answer

A)  a credit to the account Appropriations withdrawn 
B)  a credit to the account Fund Balance with Treasury 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

Question 14

Which of the following statements appearing in the federal government's consolidated financial report are prepared on the accrual basis of accounting?

Accepted Answer

A)  Balance Sheet 
B)  Statement of Changes in Cash Balance from Unified Budget and Other Activities 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 15

The Statement of Budgetary Resources for a federal agency presents a comparison of budgeted and actual revenues and expenditures.

Accepted Answer

A) True 
 B)False

Question 16

Identify the primary functions of the following entities as they relate to financial reporting by the federal government:
a)Office of Management and Budget
b)Department of Treasury
c)Government Accountability Office

Accepted Answer

The answer of Identify the primary functions of the following...

Question 17

Which of the following is (are)true regarding the Government Accountability Office?

Accepted Answer

A)  The GAO is among the three principals which approve financial reporting recommendations of the Federal Accounting Standards Advisory Board 
B)  The GAO establishes auditing standards applicable to the federal government and its agencies 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 18

Which of the following is (are)accurate regarding a federal agency's Statement of Changes in Net Position?

Accepted Answer

A)  The statement starts with the beginning of year balances in the net position accounts and reconciles these to the ending balances appearing on the agency's Balance Sheet. 
B)  Costs are measured using the accrual basis of accounting. 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 19

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

Accepted Answer

A)  a debit to the account Fund Balance with Treasury 
B)  a credit to the account Cash 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

Question 20

The Statement of Net Cost of a federal agency is prepared on the modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Exam 14: Financial Reporting by the Federal Government

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

Assume a federal agency receives supplies that had been previously ordered that will be used to support a federal program.The journal entries at the agency level to record this event will include:

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

Assume a federal agency prepared the following journal entries during the first quarter of the year.Prepare a schedule showing the status of the appropriation at the end of the first quarter.

Which of the following is responsible for preparing the federal government's consolidated financial statements?

Which of the following is not required in a federal agency's financial report?

Which of the following organizations is (are) part of the executive branch of the federal government?

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

Which of the following accounts are used to display the difference between assets and liabilities in a federal agency Balance Sheet?

Which of the following is (are) true regarding Federal Accounting Standards Advisory Board?

Assume a spending bill has been passed by Congress and signed by the President.The journal entries at the agency level to record this event will include:

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 entries at the agency level to record this event will include:

Which of the following statements appearing in the federal government's consolidated financial report are prepared on the accrual basis of accounting?

The Statement of Budgetary Resources for a federal agency presents a comparison of budgeted and actual revenues and expenditures.

Identify the primary functions of the following entities as they relate to financial reporting by the federal government: a)Office of Management and Budget b)Department of Treasury c)Government Accountability Office

Which of the following is (are) true regarding the Government Accountability Office?

Which of the following is (are) accurate regarding a federal agency's Statement of Changes in Net Position?

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

The Statement of Net Cost of a federal agency is prepared on the modified accrual basis of accounting.