Question 1

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

Accepted Answer

Only the receipt and approval of goods or services will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency. OMB establishing the amount of the total appropriation that the agency may expend in the first quarter only affects the budgetary accounts.

Question 2

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

The journal entry would be a debit to Fund Balance with Treasury and a credit to Unexpended appropriations.

Question 3

Assume the OMB apportions 1/4^th of an appropriation to a federal agency for the first quarter of the fiscal year. The journal entries at the agency level to record this event will include:

Accepted Answer

The answer of Assume the OMB apportions 1/4^th of an...

Question 4

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

Accepted Answer

The balance sheet and statement of operations and changes in net position are both prepared on the accrual basis of accounting according to the federal government's consolidated financial report. This means that transactions are recorded when they occur, regardless of when cash is received or paid out. This provides a more accurate picture of the government's financial position and performance.

Question 5

Operating Expense: Contracted Services is an example of which type of federal government account?
Budgetary Proprietary
Account Account

Accepted Answer

Contracted Services is recorded under the proprietary account type, which means it tracks the government's financial position, performance, and cash flow. However, it is not classified as a budgetary account since it does not directly relate to the government's budget and appropriations. Therefore, the correct answer is option B, which signifies that Contracted Services is a proprietary account but not a budgetary account.

Question 6

At what point in the budgetary authority process may a federal agency or its subunits begin to place orders for goods and services?

Accepted Answer

A federal agency or its subunits may begin to place orders for goods and services at the allotment stage, where funds are distributed to specific programs or activities within the agency.

Question 7

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

Appropriation is the step in the budgetary authority process when Congress passes a spending bill, which is then signed by the President. This authorizes the availability of funds for a specific purpose. Apportionment is the next step, where the Office of Management and Budget (OMB) divides the appropriated funds into smaller portions for specific agencies or programs. Allotment is the third step, where the agencies or programs then receive their portion of the funds. Obligation is the final step, where the agency or program spends the funds for their intended purpose.

Question 8

Which of the following are included in the Financial Snapshot section of the federal government's Citizen's Guide to the Financial Report of the US Government?

Accepted Answer

The Financial Snapshot section of the Citizen's Guide includes both the Net Operating Cost and the Net Position of the federal government.

Question 9

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

The journal entry would be a debit to Accounts payable and credit to Fund Balance with Treasury.

Question 10

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

The journal entry will be one or more debits to Allotments one for each department) and a credit to one or more Obligations - Undelivered Orders one for each department).

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

Apportionment is the step in the budgetary authority process when the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending. Appropriation is the authorization for a federal agency to spend a specific amount of money, allotment is the distribution of funds within a federal agency, and obligation is the commitment of funds to a specific project or purpose.

Question 12

Allotments is an example of which type of federal government account?
Budgetary Proprietary
Account Account

Accepted Answer

The answer of Allotments is an example of which type...

Question 13

Which of the following steps in the federal government's budgetary authority process is most similar to the recording of encumbrances by state and local governments?

Accepted Answer

Recording of encumbrances by state and local governments is the process of setting aside fund reservations for future expenses. Similarly, the federal government's obligation process is the step where funds have been committed for specific purposes or contracts, which is similar to the recording of encumbrances. The other options listed, such as appropriation, allotment, and apportionment, are all different steps in the federal budgetary authority process.

Question 14

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

When a federal agency places orders for contracted services supporting a federal program, it needs to record the event in their accounting records. The agency would debit the account Allotments since it is the authorization to spend funds. It would also credit the account Obligations - Undelivered Orders since the agency has incurred a liability but the services have not yet been received. Therefore, both options (a) and (b) are correct.

Question 15

Which of the following are true of the proprietary accounts of the federal government?

Accepted Answer

Proprietary Accounts are those accounts that comprise the accrual basis financial statements prepared by the federal government and its agencies. Budgetary accounts provide a record whereby federal expenditures may be traced back to the budgetary authority granted by Congress.

Question 16

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

The answer of Assume the director of a federal agency...

Question 17

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

When goods or services are received and approved for payment, the journal entry in the agency accounts would be a debit to an asset account and operating expenses, as appropriate and a credit to Accounts payable. Then a debit to Accounts payable and credit to Fund Balance with Treasury.

Question 18

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

The unobligated budgetary authority represents funds that were appropriated but not obligated or expended in the fiscal year. As a result, there is a need to adjust the agency's proprietary accounts to reflect this event. Choice (a) is correct because the unexpended appropriations account represents the funds that were appropriated but not yet expended. As a result, this account must be debited to reflect the fact that these funds will not be expended in the fiscal year. Choice (b) is also correct because returning the unobligated funds to Treasury increases the agency's balance in the fund balance with Treasury account. Therefore, a credit should be made to this account to reflect this event.

Question 19

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

Accepted Answer

Obligation is the step in the budgetary authority process when a federal agency issues a purchase order. It signifies a commitment to spend funds for a specific purpose. Apportionment is the process of dividing and allocating budgeted amounts to different time periods or accounts. Allotment is the process of setting aside budget authority for specific purposes or time periods. Appropriation is the process of providing budget authority to federal agencies to carry out their programs and activities.

Question 20

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

Accepted Answer

When Treasury notifies the agency that Congress passed legislation signed by the President) granting budgetary authority to fund its activities the journal entry in the budgetary accounts is a debit to Appropriations realized and a credit to Unapportioned Authority. The proprietary accounts would record be a debit to Fund Balance with Treasury and a credit to Unexpended appropriations. Placing orders for goods would only be recorded in the budgetary accounts.

Quiz 14: Financial Reporting by the Federal Government

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

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 the OMB apportions 1/4th of an appropriation to a federal agency for the first quarter of the fiscal year. 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?

Operating Expense: Contracted Services is an example of which type of federal government account? Budgetary Proprietary Account Account

At what point in the budgetary authority process may a federal agency or its subunits begin to place orders for goods and services?

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

Which of the following are included in the Financial Snapshot section of the federal government's Citizen's Guide to the Financial Report of the US Government?

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

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 the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending?

Allotments is an example of which type of federal government account? Budgetary Proprietary Account Account

Which of the following steps in the federal government's budgetary authority process is most similar to the recording of encumbrances by state and local governments?

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 are true of the proprietary accounts of the federal government?

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:

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:

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

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

Assume the OMB apportions 1/4^th of an appropriation to a federal agency for the first quarter of the fiscal year. The journal entries at the agency level to record this event will include: