Basics Questions On Government Contracting

2.

Generally Accepted Accounting Principles (GAAP) applies when FAR and CAS are silent.

True
False

Correct Answer

A. True

Explanation

Generally Accepted Accounting Principles (GAAP) is a set of accounting standards and guidelines that are widely accepted and used by companies in the United States. When the Federal Acquisition Regulation (FAR) and the Cost Accounting Standards (CAS) do not specifically address a particular accounting issue, GAAP is applied. This means that in the absence of specific guidance from FAR and CAS, companies should follow GAAP to ensure consistency and accuracy in their financial reporting. Therefore, the statement "Generally Accepted Accounting Principles (GAAP) applies when FAR and CAS are silent" is true.

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1

3.

Commercial contracts focus on making money while the government contracts want to save it.

True
False

Correct Answer

A. True

Explanation

Commercial contracts are agreements between businesses or individuals that are primarily aimed at generating profits and maximizing financial gains. On the other hand, government contracts involve agreements between the government and other parties, such as businesses or individuals, with the goal of providing goods or services to the government or its constituents while ensuring cost-effectiveness and savings of taxpayer money. Therefore, the statement accurately reflects the difference in focus between commercial and government contracts, making the answer "True."

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4.

A CPFF contract is also known as cost reimbursable contract that provides payment to contractor at a negotiated ______.

Correct Answer
fee

Explanation
A CPFF contract, also known as a cost reimbursable contract, provides payment to the contractor at a negotiated fee. In this type of contract, the contractor is reimbursed for the actual costs incurred during the project, and in addition, they receive a fee that is predetermined and agreed upon in the contract. This fee is usually a percentage of the total costs or a fixed amount, and it serves as the contractor's profit or compensation for their services.

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5.

Below are the responsibilities of DCAA. Choose applicable:

Primary auditor of government contracts
Concentrate on the contractor's operations
Focuses only the contracts they award

Correct Answer(s)

A. Primary auditor of government contracts
A. Concentrate on the contractor's operations

Explanation

The DCAA, or Defense Contract Audit Agency, has the responsibility of being the primary auditor of government contracts. This means that they are responsible for conducting audits and reviews of contracts awarded by the government. Additionally, the DCAA also focuses on the contractor's operations, ensuring that they are in compliance with regulations and guidelines. This includes examining the contractor's financial and accounting systems, as well as assessing the contractor's internal controls. By concentrating on the contractor's operations, the DCAA aims to ensure that government contracts are being executed efficiently and effectively.

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6.

Basics Questions On Government Contracting

It is a type of contract awarded where acquisition of service is based on direct labor hours and cost of materials.

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Generally Accepted Accounting Principles (GAAP) applies when FAR and CAS are silent.

Commercial contracts focus on making money while the government contracts want to save it.

A CPFF contract is also known as cost reimbursable contract that provides payment to contractor at a negotiated ______.

Below are the responsibilities of DCAA. Choose applicable:

What are the benefits of using GCS Premier as your government contract accounting solution?