Question 1

A federal agency issued $1,000 in purchase orders for goods and services. How would this transaction be recorded?

Accepted Answer

When a federal agency issues a purchase order, it is recorded in the budgetary track. The purchase order represents a commitment to purchase goods or services, so it should be recorded as a debit to the Commitments account and a credit to the Undelivered Orders account.

Question 2

Which of the following federal financial statements relies primarily on the use of actuarial assumptions and long-range projections for the information reported on the statement?

Accepted Answer

The Statement of Social Insurance relies primarily on actuarial assumptions and long-range projections for the information reported on the statement. This statement reports on the financial status of federal programs such as Social Security and Medicare. The other options listed rely on different types of financial information and reporting methods.

Question 3

A federal agency received $900,000 as its annual appropriation from Congress.How would the appropriation be recorded by the agency?

Accepted Answer

The answer of A federal agency received $900,000 as its...

Question 4

Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?

Accepted Answer

The typical flow of budgetary authority through the budgetary accounts of a federal agency starts with an appropriation by Congress, followed by apportionment (the division of funds into smaller amounts for specific programs or time periods), then allotment (a further division of funds to specific organizational units within the agency), commitment (the agency's commitment to spend a certain amount of funds on a specific program or project), obligation (the legal obligation to spend funds on a specific program or project), and finally the expended appropriation (actual spending of the funds).

Question 5

Identify the office,officer,or department of the United States federal government that is responsible for each of the following:
A.Appropriations.
B.Apportionments.
C.Allotments.
D.Obligations.

Accepted Answer

The answer of Identify the office,officer,or department of the United...

Question 6

The management's discussion and analysis (MD&A)required in general purpose federal financial reporting is different than that required by GASB of state and local governments in that:

Accepted Answer

The MD&A required in general purpose federal financial reporting includes information about the agency's performance goals and results in addition to financial activities. This is different from the MD&A required by GASB of state and local governments, which focuses solely on financial activities.

Question 7

Compute the missing amount in the following list of proprietary accounts of a federal government agency.Show all computations legibly with labels.
Proprietary Accounts:

Accepted Answer

The answer of Compute the missing amount in the following...

Question 8

A federal agency recorded the receipt of supplies at an actual cost of $57,000.At the time the purchase orders were issued it was estimated the supplies would cost $56,000. How would this transaction be recorded in the budgetary track accounts?

Accepted Answer

In the budgetary track accounts, the initial estimate of the cost of supplies is recorded as an Allotment. When the supplies are received and the actual cost is known, the Undelivered Orders account is debited for the actual cost ($57,000) and the Allotments account is debited for the difference between the actual cost and the initial estimate ($1,000). The Expended Authority account is then credited for the total actual cost ($57,000) to record the expenditure. Therefore, the correct entry is Debit Undelivered Orders $56,000, Debit Allotments $1,000, and credit Expended Authority $57,000.

Question 9

Which of the following is an example of a stewardship asset?

Accepted Answer

A stewardship asset is a resource that is held by an organization or government agency for the benefit of society or future generations, and which requires careful management and oversight to ensure its continued usefulness. The Lincoln Memorial is an example of a stewardship asset because it is a historic landmark that serves as a symbol of American democracy and values. It must be protected and preserved for future generations to enjoy, and its maintenance requires ongoing investment and management by the National Park Service. In contrast, the Treasury Building and the George Washington Bridge are government infrastructure assets that are primarily intended for current use, and a stealth fighter jet is a military asset that is primarily intended for national defense.

Question 10

The Federal Monuments Commission began operations on October 1,2017.Show in general journal form all entries that should be made in budgetary and proprietary accounts of the agency to record the following events:
1.The Congress passed,and the President signed,a one-year appropriation for fiscal year 2018 for the Monuments Commission in the amount of $30,000,000.
2.The OMB notified the agency of the following apportionments of the 2018 appropriation: first quarter,$8,000,000; second quarter,$8,000,000; third quarter,$7,000,000; and fourth quarter,$7,000,000.
3.The Commission Director allotted $1,500,000 for the operations of October 2017.
4.Commitments for goods and services not yet ordered or received were recorded in the amount of $1,300,000.
5.Purchase orders and contracts for services were recorded for the month of October 2017 in the amount of $1,250,000.

Accepted Answer

The answer of The Federal Monuments Commission began operations on...

Question 11

A federal agency recorded the receipt of supplies at an actual cost of $57,000.At the time the purchase orders were issued it was estimated the supplies would cost $56,000. How would this transaction be recorded in the proprietary track accounts?

Accepted Answer

The transaction would be recorded in both the proprietary track and the budgetary track. In the proprietary track, the supplies would be debited to Operating Materials and Supplies and Unexpended Appropriations, and the Accounts Payable would be credited. In the budgetary track, the appropriation would be recorded as used and the unexpended appropriation would be reduced.

Question 12

Explain the components of net position.

Accepted Answer

The answer of Explain the components of net position....

Question 13

Which of the following statements is not about the United States government-wide financial report?

Accepted Answer

The federal government has not received an unqualified opinion from the GAO on the most recent financial statements of the U.S. government as a whole; the GAO has consistently issued a disclaimer of opinion.

Question 14

The Desert Conservation Agency was authorized by the United States Congress to commence operations on October 1,2017.Record the following transactions in general journal form,as they should appear in the budgetary and proprietary accounts of the agency.For each entry indicate whether it affects the budgetary accounts or the proprietary accounts.
1.The agency received official notice that its one-year appropriation passed by the Congress and signed by the President amounted to $350 million for operating expenses for the fiscal year and $100 million for acquisition of capital assets during the year.
2.The Office of Management and Budget notified the agency that the entire appropriation had been apportioned.
3.The head of the agency allotted $75 million for the first quarter's operating expenses,and $25 million for equipment to be ordered during the first quarter.
4.Purchase orders and contracts for services recorded for the first quarter totaled $90 million (the agency does not record commitments prior to placing orders or entering into contracts).
5.Total expenditures for the first quarter amounted to $70 million for operating expenses and $18 million for equipment,for which an obligation in the amount of $84 million had been previously recorded (see item 4 above).The expenditures were all paid from fund balance with U.S.Treasury.

Accepted Answer

The answer of The Desert Conservation Agency was authorized by...

Question 15

Explain the GAAP hierarchy used by federal government agencies.

Accepted Answer

The answer of Explain the GAAP hierarchy used by federal...

Question 16

"Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not?

Accepted Answer

The answer of "Each federal government agency should maintain a...

Question 17

Which of the following is required by OMB Circular A-136 in the basic financial statements?

Accepted Answer

OMB Circular A-136 requires the preparation of a statement of changes in net position as part of the basic financial statements. The other options listed (B, C, and D) are not specifically required by the circular.

Question 18

Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts.

Accepted Answer

The answer of Describe the budgetary accounts used in federal...

Question 19

The following are key terms in Chapter 17 that relate to accounting and financial reporting for federal agencies and the federal government:
A.Apportionment
B.Budgetary resources
C.Expended appropriation
D.Governmental assets
E.Heritage assets
F.Intragovernmental assets
G.Stewardship investments
H.Stewardship land
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

Accepted Answer

The answer of The following are key terms in Chapter...

Question 20

Explain the "dual-track" accounting system used by federal agencies and why it is needed.

Accepted Answer

The answer of Explain the "dual-track" accounting system used by...

Quiz 17: Accounting and Reporting for the Federal Government Glossary