Deck 19: Federal Government Accounting

Question 1

When agency directors make allotments, what budgetary accounts are affected?

A) Unapportioned Authority and Allotments-Realized Resources.
B) Allotments-Realized Resources and Undelivered Orders.
C) Appropriations and Allotments-Realized Resources.
D) Allotments-Realized Resources and Expended Appropriations.

Answer 1

C

Question 2

Which of the following does not change cumulative results of operations of a federal agency?

A) Appropriations used.
B) Gains on sales of agency assets.
C) Expenses.
D) Purchase of capital assets.

Answer 2

D

Question 3

Which of the following funds would you not expect to find in federal government accounting?

A) General fund.
B) Special funds.
C) Revolving funds.
D) Capital projects funds.

Answer 3

D

Question 4

$\underline{\text{ Requirements: }}$
Compare and contrast the financial management responsibilities of:
A. Department of the Treasury
B. Office of Management and Budget
C. Government Accountability Office
D. Federal Accounting Standards Advisory Board

Question 5

An agency makes an internal preliminary request for the purchase of $75,000 of equipment and supplies with an anticipated cost of $10,000. The budgetary entry made by the agency would be
$\begin{array}{llcc}&& \text {Debit}& \text {Credit}\\ \text {A.}& \text { Expenditures } & \$ 10,000 \\& \text { Capital Assets} & 75,000 \\&\text { Appropriations }&&\$85,000\\ \text {B. }& \text { Allotments - Realized Resources } & \$ 85,000 \\& \text { Commitments } && \$ 85,000\\\\ \text {C. }&\text { Appropriations} &\$ 85,000\\& \text { Commitments} &&\$ 85,000\\\\ \text {D.}& \text { Appropriations } &\$ 85,000\\ &\text { Allotments } &&\$ 85,000\\\end{array}$

Question 6

Unexpended, unobligated appropriation authority from a previous year is representative of

A) A commitment.
B) An apportionment.
C) Allotments-expired authority.
D) A suballotment.

Question 7

Who has responsibility to develop and recommend accounting and financial reporting principles for the federal government?

A) Federal Accounting Standards Advisory Board.
B) Financial Accounting Standards Board.
C) Governmental Accounting Standards Board.
D) Government Accountability Office.

Question 8

The net position of the U.S. government is not:

A) The net assets of the federal government.
B) Equal to the difference between the assets and liabilities of the federal government.
C) Comprised of cumulative results of operations and unexpended appropriations.
D) Available for expenditure.

Question 9

Assume that Congress enacted an appropriation for a federal agency in the amount of $500,000. The proprietary entry that would be necessary would be A.
$\begin{array}{cc}&\underline{\text { Debit }}&\underline{ \text { Credit }}\\ \text { Fund Balance with Treasury............. } &\$500,000\\ \text { Unexpended Appropriations.............} &&\$500,000\\\end{array}$
B.
$\begin{array}{lc} \text { Cash................................................. } &\$500,000\\ \text { Appropriations................................. } &&\$500,000\\\end{array}$
C.
$\begin{array}{cc} \text { Appropriation Realized.................... } &\$500,000\\ \text { Unapportioned Authority................. } &&\$500,000\\\end{array}$
D.
$\begin{array}{lc} \text { Cash................................................. } &\$500,000\\ \text { Obligations....................................... } &&\$500,000\\\end{array}$

Question 10

Which of the following budgetary accounts typically have a debit balance?

A) Apportionments.
B) Expended Appropriations.
C) Undelivered Orders-unpaid.
D) Appropriations Realized.

Question 11

A budgetary entry for depreciation on an agency's equipment would

A) Include a debit to expenses.
B) Include a credit to accumulated depreciation.
C) Include a debit to appropriations.
D) Not be necessary.

Question 12

An appropriation was made for a federal agency in the amount of $1,000,000. The agency's unexpended appropriations component of net position

A) Does not change.
B) Increases by $1,000,000.
C) Decreases by $1,000,000.
D) Will either increase or decrease, depending on the nature of the appropriation.

Question 13

Federal budgetary authority has been exceeded in the following situations except

A) When a commitment has occurred within an agency.
B) An apportionment exceeds an appropriation.
C) An obligation exceeds an allotment.
D) An expended appropriation exceeds an apportionment.

Question 14

What is the primary financing source reported by most federal agencies?

A) Sales revenues.
B) Appropriations used.
C) Appropriations received from Congress.
D) Apportionments.

Question 15

The budgetary fund balance of an agency is also known as

A) Unassigned fund balance.
B) Undesignated fund balance.
C) Unexpended appropriations.
D) Obligated appropriations.

Question 16

Cumulative results of operations is comprised of

A) Unexpended appropriations and earmarked funds.
B) Earmarked and non-earmarked funds.
C) Expended appropriations and unexpended appropriations.
D) Increases in appropriation authority less expended appropriations and withdrawal of unexpended or unobligated appropriation authority.

Question 17

In a federal agency's budgetary accounts, which account is most similar to encumbrances in a state or local government?

A) Allotments.
B) Commitments.
C) Apportionments.
D) Appropriated capital.

Question 18

If an agency incurs expenses that were not previously obligated, the agency should make a proprietary entry that DEBITS

A) Fund balance.
B) Advances to others.
C) Appropriations used.
D) Unexpended appropriations.

Question 19

The following transactions and events were selected from a federal agency. All amounts are in millions of dollars.

$\underline{\text{ Transactions: }}$
1. Received a warrant from Treasury for its appropriation for the fiscal year, $300.
2. The OMB apportioned $80 to the agency.
3. The agency head allotted $79 to specific purposes.
4. Preliminary requests were made within the agency for the purchase of $8 in supplies.
5. Purchase orders were approved and placed for the $8 of supplies requested.
6. Salaries of $40 were paid to agency employees.
7. Equipment with an estimated cost of $17 was ordered.
8. The equipment was received along with an invoice for its $17 cost.

$\underline{\text{ Requirement: }}$ Prepare the entries a federal agency should make to record these transactions and events.

Question 20

Which of the following is a component of the net position of the U.S. Government?

A) Cumulative results of operations.
B) Restricted net position.
C) Capital Contributed by Treasury.
D) Net investments in capital assets.

Question 21

Which transaction of a federal agency requires a budgetary entry but not a proprietary entry?

A) Receipt of budgetary authority from the Congress, i.e., receipt of appropriation.
B) Consumption of materials and supplies.
C) Depreciation of fixed assets.
D) Approval and placement of purchase order.

Question 22

When equipment is purchased on account, what proprietary accounts are debited?

A) Equipment and Unexpended Appropriations.
B) Capital Expenses and Unexpended Appropriations.
C) Equipment and Appropriations Used.
D) Equipment and Expended Appropriations.

Question 23

When materials or supplies that have been ordered are received, what budgetary account is credited?

A) Undelivered orders.
B) Appropriations.
C) Expended appropriations.
D) Appropriations used.

Question 24

Previously purchased materials costing $50,000 were used by a federal agency. The proprietary entry to record this transaction would be $\begin{array}{llr}&& \text {Debit}& \text {Credit}\\ \text { A. } & \text {Operating/Program Expenses - Materials } &\$50,000\\& \text { Inventory for Agency Operations } &&\$50,000\\\\ \text {B. } & \text { Operating/Program Expenses - Materials. } &\$50,000\\& \text { Appropriations Used.} & &\$50,000\\\\ \text { C. } & \text { Appropriations Realized } &\$50,000\\&\text { Inventory for Agency Operations. } & &\$50,000\\\\ \text { D. } & \text { Inventory for Agency Operations } &\$50,000\\& \text { Accounts Payable} & &\$50,000\\\end{array}$

Question 25

The following are representative of the basic year-end financial statements required by an agency except

A) Statement of Net Cost.
B) Statement of Social Insurance.
C) Statement of Investing.
D) Statement of Custodial Activity.

Question 26

Which transaction of a federal agency requires both budgetary and proprietary entries?

A) Receipt of budgetary authority from the Congress, i.e., receipt of appropriation.
B) Consumption of materials and supplies.
C) Depreciation of capital assets.
D) Signing a contract to buy services.

Question 27

Which of the following journal entries would you expect to see for a federal agency?

A) Debit to unapportioned authority and credit to commitments.
B) Debit to unapportioned authority and credit to allotments-realized resources.
C) Debit to unapportioned authority and credit to apportionments.
D) Debit to unapportioned authority and credit to expended appropriations.

Question 28

When equipment is purchased on account, what proprietary accounts are credited?

A) Accounts Payable and Unexpended Appropriations.
B) Cash and Unexpended Appropriations.
C) Accounts Payable and Appropriations Used.
D) Accounts Payable and Expended Appropriations.

Question 29

Which of the following proprietary accounts of a federal agency would be closed at year end?

A) Appropriations realized.
B) Apportionments.
C) Appropriations used.
D) Unexpended appropriations.

Question 30

Which of the following journal entries would you expect to see for a federal agency?

A) Debit to commitments and credit to unappropriated authority.
B) Debit to commitments and credit to allotments-realized resources.
C) Debit to commitments and credit to undelivered orders-unpaid.
D) Debit to commitments and credit to expended appropriations.

Question 31

Which of the following would not be included as part of the consolidated financial statements of the federal government?

A) Balance sheet.
B) Statement of custodial activity.
C) Statement of net cost.
D) Statement of social insurance.

Question 32

Which of the following budgetary accounts typically is not closed at year end?

A) Unapportioned Authority.
B) Expended Appropriations.
C) Allotments-Expired Authority.
D) Commitments.

Question 33

Which transaction of a federal agency does not require both budgetary and proprietary entries?

A) Receipt of budgetary authority from the Congress, i.e., receipt of appropriation.
B) Payment of liabilities.
C) Accrued salaries and benefits.
D) Receipt of fixed assets or materials ordered.

Question 34

Which transaction of a federal agency requires a proprietary entry, but not a budgetary entry?

A) Receipt of capital assets or materials ordered.
B) Consumption of materials and supplies.
C) Accrued salaries and benefits.
D) Approval and placement of purchase order.