Question 1

Assume a federal agency places orders for contracted services supporting a federal program. The journal entries at the agency level to record this event will include:

Accepted Answer

A)  a credit to the account Expended Appropriations 
B)  a debit to the account Allotments 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

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

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)  The statement does not report Appropriations Received since this is a budgetary account and does not affect net position. 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 4

Assume the director of a federal agency allots a portion of the agency's apportionment to subunits within the agency. The journal entries at the agency level to record this event will include:

Accepted Answer

A)  a debit to the account Apportionments 
B)  a debit to the account Allotments 
C)  a credit to the account Obligations - Undelivered Orders 
D)  None of the above

Question 5

Which of the following steps in the budgetary authority process occurs when Congress passes a spending bill which is signed by the President?

Accepted Answer

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

Question 6

The difference between assets and liabilities of a federal agency is comprised of Fund Balance and may be classified as Nonspendable,Committed,Restricted,Assigned and Unassigned.

Accepted Answer

A) True 
 B)False

Question 7

Assume a federal agency places orders for contracted services supporting a federal program. The journal entries at the agency level to record this event will include:

Accepted Answer

A)  a debit to the account Allotments 
B)  a credit to the account Obligations - Undelivered Orders 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

Question 8

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 9

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 10

The budgetary authority process for a federal agency begins with the Treasury Department issuing a warrant granting the agency the authority to withdraw funds.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following steps in the budgetary authority process occurs when the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending?

Accepted Answer

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

Question 12

The Statement of Changes in Net Position of a federal agency should articulate with net position on the agency's Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 Unexpended Appropriations 
C)  Both (a) and (b) 
D)  Neither (a) nor (b)

Question 15

Which of the following is true regarding the Balance Sheet of a federal agency?

Accepted Answer

A)  The balance sheet is prepared using the economic resource measurement focus and accrual accounting. 
B)  Assets are measured on the modified accrual basis. 
C)  The difference between assets and liabilities is termed "Net Assets". 
D)  Assets are separated between current and noncurrent.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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:

Accepted Answer

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

Question 18

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

Accepted Answer

A)  Net costs reported on the Statement of Net Costs may differ from those appearing in the Statement of Changes in Net Position, since the latter are measured on the budgetary basis. 
B)  The Statement of Net Costs provides greater detail about the cost of the Agency's programs, but agrees in total net cost reported on the Statement of Changes in Net Position 
C)  Both (a) and (b) above 
D)  Neither (a) nor (b) above

Question 19

Identify (in order of occurrence)the steps in the federal budgetary authority process.

Accepted Answer

The answer of Identify (in order of occurrence)the steps in...

Question 20

The proprietary accounts of a federal agency are used to prepare the accrual basis financial statements of the federal government and its agencies.

Accepted Answer

A) True 
 B)False

Exam 14: Financial Reporting by the Federal Government

Assume a federal agency places orders for contracted services supporting a federal program. The journal entries at the agency level to record this event will include:

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

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

Assume the director of a federal agency allots a portion of the agency's apportionment to subunits within the agency. The journal entries at the agency level to record this event will include:

Which of the following steps in the budgetary authority process occurs when Congress passes a spending bill which is signed by the President?

The difference between assets and liabilities of a federal agency is comprised of Fund Balance and may be classified as Nonspendable,Committed,Restricted,Assigned and Unassigned.

Assume a federal agency places orders for contracted services supporting a federal program. The journal entries at the agency level to record this event will include:

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

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.

The budgetary authority process for a federal agency begins with the Treasury Department issuing a warrant granting the agency the authority to withdraw funds.

Which of the following steps in the budgetary authority process occurs when the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending?

The Statement of Changes in Net Position of a federal agency should articulate with net position on the agency's Balance Sheet.

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

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:

Which of the following is true regarding the Balance Sheet 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 $ 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 is (are) accurate regarding a federal agency's Statement of Net Costs?

Identify (in order of occurrence)the steps in the federal budgetary authority process.

The proprietary accounts of a federal agency are used to prepare the accrual basis financial statements of the federal government and its agencies.