Question 1

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 $\begin{array}{|c|c|c|r|} 
\hline& & \text { Debit } &{\text { Credit }} \
\hline \text { A } & \begin{array}{l}
\text { Fund Balance with Treasury } \
\text { Unexpended Appropriations }
\end{array} & \$ 500,000 & \$ 500,000  \
\hline \text { B. } & \begin{array}{c}
\text { Cash } \
\text { Appropriations }
\end{array} & \$ 500,000 & \$ 500,000 \
\hline \text { C. } & \begin{array}{c}
\text { Appropriation Realized } \
\text { Unapportioned Authority }
\end{array} & \$ 500,000 & \$ 500,000 \
\hline \text { D. } & \begin{array}{c}
\text { Cash } \
\text { Obligations }
\end{array} & \$ 500,000 & \$ 500,000 \
\hline
\end{array}$

Accepted Answer

A

Question 2

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

Accepted Answer

When agency directors make allotments, the budgetary accounts that are affected are Appropriations and Allotments-Realized Resources. Appropriations are the amount of money approved by Congress for a specific program or purpose, while allotments are the portion of the appropriation that is set aside for specific activities or programs within the agency. Realized resources refer to the actual funds available to the agency, which may come from sources such as fees, fines, or other revenues. Therefore, C is the correct choice because it includes both appropriations and allotments-realized resources.

Question 3

The budgetary fund balance of an agency is also known as

Accepted Answer

The budgetary fund balance of an agency is also known as Unexpended appropriations. This term refers to the portion of the budget that has been appropriated by a governing body but has not yet been spent or encumbered.

Question 4

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

Accepted Answer

The answer of What is the primary financing source reported...

Question 5

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

Accepted Answer

The Federal Accounting Standards Advisory Board (FASAB) is responsible for developing and recommending accounting and financial reporting principles for the federal government.

Question 6

Cumulative results of operations is comprised of

Accepted Answer

The answer of Cumulative results of operations is comprised of
...

Question 7

Federal budgetary authority has been exceeded in the following situations except

Accepted Answer

A commitment within an agency does not necessarily mean that federal budgetary authority has been exceeded. Commitments are plans to spend money, but they do not represent actual expenditures or obligations that would exceed budgetary authority. In contrast, exceeding an appropriation, allotment, or apportionment involves surpassing authorized spending levels, which directly relates to exceeding federal budgetary authority.

Question 8

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

Accepted Answer

The answer of Which of the following budgetary accounts typically...

Question 9

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

Accepted Answer

The unexpended appropriations component of net position increases by the amount of the appropriation, in this case, $1,000,000, because it represents the amount of funding provided by Congress that has not yet been spent.

Question 10

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

Accepted Answer

The answer of Which of the following is a component...

Question 11

The following transactions and events were selected from a federal agency. All amounts are in millions of dollars.
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.
Requirement: Prepare the entries a federal agency should make to record these transactions and events.

Accepted Answer

The answer of The following transactions and events were selected...

Question 12

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

Accepted Answer

Commitments are similar to encumbrances because they both represent obligations that have been made but not yet paid.

Question 13

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

Accepted Answer

Expired authority refers to funds that were not used or obligated by the end of the fiscal year and are no longer available for new obligations.

Question 14

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

Accepted Answer

The purchase of capital assets does not change the cumulative results of operations of a federal agency because it is considered an investment in the agency's future rather than an expense affecting the current period's operational results.

Question 15

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

Accepted Answer

When an agency incurs expenses that were not previously obligated, it means that the expenses were not part of the agency's initial plan or budget. Therefore, the expenses can only be paid for using unexpended appropriations, which are funds that were set aside for a specific purpose but were not spent. Proprietary entries record transactions that affect the agency's internal accounts, such as its funds and appropriations. Hence, the agency should make a proprietary entry that debits its unexpended appropriations account to cover the expenses.

Question 16

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

Accepted Answer

The answer of Requirements: Compare and contrast the financial management...

Question 17

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

Accepted Answer

The answer of A budgetary entry for depreciation on an...

Question 18

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 $\begin{array}{|l|l|r|r|} 
\hline& & \text { Debit } & {\text { Credit }} \
\hline \text { A. } & \begin{array}{l}
\text { Expenditures } \
\text { Capital Assets } \
\text { Appropriations }
\end{array} & \begin{array}{l}
\$10,000\
75,000 \
\end{array}& \$85,000\
\hline \text { B. } & \begin{array}{c}
\text { Allotments - Realized Resources } \
\text { Commitments }
\end{array} & \$ 85,000 & \$ 85,000 \
\hline \text { C. } & \begin{array}{c}
\text { Appropriations } \
\text { Commitments }
\end{array} & \$ 85,000 & \$ 85,000 \
\hline \text { D. } & \begin{array}{c}
\text { Appropriations } \
\text { Allotments }
\end{array} & \$ 85,000 & \$ 85,000 \
\hline
\end{array}$

Accepted Answer

The answer of An agency makes an internal preliminary request...

Question 19

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

Accepted Answer

Capital projects funds are used for major capital investments such as buildings, roads, and bridges, and are typically only used in the accounting of state and local governments, rather than the federal government.

Question 20

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

Accepted Answer

The net position of the U.S. government represents the difference between its assets and liabilities, but it is not available for expenditure. It is a measure of the overall financial health of the government but does not represent funds that can be used for current operations or expenditures. Furthermore, the net position includes both the cumulative results of operations as well as unexpended appropriations, so choice C is incorrect.

Quiz 19: Federal Government Accounting