Accounting & Reporting For The Federal Gov't Nfp

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Quizzes Created: 1 | Total Attempts: 237
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  • 1/19 Questions

    By law, federal agencies must incorporate the accounting standards (GAAP) established for the federal government into their financial managements systems

    • True
    • False
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Governmental Accounting Quizzes & Trivia
About This Quiz

Different organizations have different reporting styles and ways to account for their periodic activities. Find out more about accounting and reporting for the Federal government Nfp through the quiz below.

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  • 2. 

    Which of the following is a correct mathematical relationship among proprietary account balances?

    • Net Position equals Total Assets minus Total Liabilities

    • Fund Balance with Treasury equals Unexpended Appropriations

    • Cumulative Results of Operations equals Revenues and Financing Sources minus Operating/Program Expenses

    • Disbursements in Transit equals Fund Balance with Treasury minus Accounts Payable and Other Current Liabilities

    Correct Answer
    A. Net Position equals Total Assets minus Total Liabilities
    Explanation
    The correct answer is "Net Position equals Total Assets minus Total Liabilities". Net position is a measure of the financial position of an entity, and it represents the residual interest in the assets of the entity after deducting liabilities. Total assets refer to the total value of all the resources owned by the entity, while total liabilities represent the total amount of debts or obligations owed by the entity. Therefore, subtracting total liabilities from total assets gives us the net position, which represents the entity's overall financial standing.

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  • 3. 

    FASAB has identified four major user groups of federal financial reports, they are:

    •  Congress, executives, program managers, and citizens.

    • Congress, executives, citizens, and bond rating agencies.

    • Congress, program managers, foreign governments and citizens.

    • Congress, program managers, bond rating agencies, and political parties.

    Correct Answer
    A.  Congress, executives, program managers, and citizens.
    Explanation
    The correct answer is Congress, executives, program managers, and citizens. This is because FASAB, the Federal Accounting Standards Advisory Board, has identified these four user groups as the major stakeholders of federal financial reports. Congress, as the legislative branch, needs financial reports to make informed decisions and allocate funds. Executives, such as agency heads and department heads, use financial reports to manage and oversee their respective organizations. Program managers rely on financial reports to monitor the financial performance of their programs. Citizens, as taxpayers and stakeholders, have the right to access and understand federal financial information.

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  • 4. 

    Federal statutes assign responsibility for establishing and maintaining a sound financial structure for the federal government to which of the following:

    • Congress

    • Comptroller General, Secretary of the Treasure, and Director of the Office of Management and Budget

    • Office of Management and Budget

    • Federal Financial Accounting Standards Board

    Correct Answer
    A. Comptroller General, Secretary of the Treasure, and Director of the Office of Management and Budget
    Explanation
    The responsibility for establishing and maintaining a sound financial structure for the federal government is assigned to the Comptroller General, Secretary of the Treasury, and Director of the Office of Management and Budget. These individuals play crucial roles in overseeing and managing the financial operations of the federal government, ensuring that it remains financially stable and accountable. They are responsible for budgeting, financial reporting, and ensuring compliance with federal financial regulations.

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  • 5. 

    Which of the following is not a true statement about the difference between accounting and reporting for federal government agencies versus state and local governments?

    • The federal government uses a dual-track method of accounting for proprietary accounts and budgetary accounts; state and local governments also use budgetary accounting

    • State and local governments use accrual accounting in the government-wide statements as well as proprietary and fiduciary funds; federal agencies use only the cash basis of accounting

    • The budget is recorded in the general ledger of a state or local government and a federal agency

    • State and local governments do not account for apportionments and most do not account for allotments

    Correct Answer
    A. State and local governments use accrual accounting in the government-wide statements as well as proprietary and fiduciary funds; federal agencies use only the cash basis of accounting
    Explanation
    The correct answer is that state and local governments use accrual accounting in the government-wide statements as well as proprietary and fiduciary funds, while federal agencies use only the cash basis of accounting. This means that state and local governments record transactions when they occur, regardless of when the cash is received or paid, providing a more accurate representation of their financial position. On the other hand, federal agencies only record transactions when cash is received or paid, which may not reflect the true financial position of the agency.

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  • 6. 

    Where would federal agencies report information concerning their performance goals and performance results, along with their future challenges?

    • Other accompanying information.

    • Required supplemental information.

    • Management discussion and analysis.

    • Notes to the financial statements

    Correct Answer
    A. Management discussion and analysis.
    Explanation
    Federal agencies would report information concerning their performance goals and performance results, along with their future challenges in the Management Discussion and Analysis section. This section provides a narrative explanation of the agency's overall performance and financial results, including an analysis of the agency's goals, objectives, and strategies. It also discusses any challenges or risks that may impact the agency's ability to achieve its goals in the future. This information is important for stakeholders to understand the agency's performance and future prospects.

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  • 7. 

    Assuming that an agency's unused appropriations expire at year-end but appropriations continue in effect for obligated amounts (purchase orders, etc.), which of the following budgetary accounts would likely be found in the agency's post-closing trial balance at year-end?

    • Commitments and Other Appropriations Realized

    • Undelivered Orders and Other Appropriations Realized

    • Expended Authority and Undelivered Orders

    • Commitments and Undelivered Orders

    Correct Answer
    A. Undelivered Orders and Other Appropriations Realized
    Explanation
    Undelivered Orders and Other Appropriations Realized would likely be found in the agency's post-closing trial balance at year-end because it reflects the amount of appropriations that have been obligated but not yet delivered or expended. This account captures the remaining budgetary authority that the agency has at the end of the year, which includes both undelivered orders and any other appropriations that have been realized but not yet utilized.

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  • 8. 

    The Comptroller General of the United States is the head of the:

    • Office of Management and Budget

    • Government Accountability Office

    • Congressional Budget Office

    • Federal Accounting Standards Advisory Board

    Correct Answer
    A. Government Accountability Office
    Explanation
    The Comptroller General of the United States is the head of the Government Accountability Office. This is the correct answer because the Comptroller General is responsible for leading and overseeing the activities of the Government Accountability Office, which is an independent agency that provides auditing, evaluation, and investigative services for the U.S. Congress. The Comptroller General is appointed by the President of the United States and serves as a non-partisan, independent official who ensures accountability and transparency in government operations.

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  • 9. 

    Objectives that are identified by Statement of Federal Financial Accounting Concepts (SFFAC) No. 1 for federal financial reporting include all of the following except:

    • Budgetary integrity

    • Operating performance

    • Stewardship

    • Transparency

    Correct Answer
    A. Transparency
    Explanation
    The objectives identified by Statement of Federal Financial Accounting Concepts (SFFAC) No. 1 for federal financial reporting include budgetary integrity, operating performance, and stewardship. Transparency, on the other hand, is not included as an objective. Transparency refers to the disclosure of relevant financial information to the public and stakeholders, which promotes accountability and trust in the government's financial activities. While transparency is an important aspect of financial reporting, it is not specifically mentioned as one of the objectives in SFFAC No. 1.

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  • 10. 

    Which of the following is not part of the FASAB due process for establishing a federal financial accounting standard?

    •  Public comment on a discussion memorandum.

    • Issuing an exposure draft

    • Unanimous approval by the FASAB

    • Support (or lack of opposition) of the standard by the three principles (Comptroller General, Sec. of the Treasury, and Dr. of OMB)

    Correct Answer
    A. Unanimous approval by the FASAB
    Explanation
    The FASAB due process for establishing a federal financial accounting standard includes public comment on a discussion memorandum, issuing an exposure draft, and support (or lack of opposition) of the standard by the three principles (Comptroller General, Sec. of the Treasury, and Dr. of OMB). However, unanimous approval by the FASAB is not part of the due process.

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  • 11. 

    Which of the following is a required basic financial statement for federal agencies?

    • Statement of net cost

    • Statement of cash flows

    • Statement of financing

    • Statement of budgetary revenues and expenditures

    Correct Answer
    A. Statement of net cost
    Explanation
    The statement of net cost is a required basic financial statement for federal agencies. This statement provides information on the costs incurred by the agency in providing goods and services, as well as the revenue generated from those activities. It helps to assess the efficiency and effectiveness of the agency's operations and provides transparency in financial reporting. The statement of net cost is essential for understanding the financial performance of federal agencies and ensuring accountability in the use of public funds.

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  • 12. 

    The process for establishing generally accepted accounting principles (GAAP) for federal agencies includes:

    • A comment period

    • Approval by a simple majority of the members of the FASAB

    • Implementation by the Office of Management and Budget

    • Oversight by the Government Accountability Office

    Correct Answer
    A. A comment period
    Explanation
    The process for establishing generally accepted accounting principles (GAAP) for federal agencies includes a comment period. This allows stakeholders and the public to provide input and feedback on the proposed principles before they are finalized. This ensures transparency and allows for a more comprehensive and inclusive decision-making process.

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  • 13. 

    The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the federal budgetary term "commitment" is not synonymous with "appropriations" as used in state and local government terminology. While both terms refer to the allocation of funds, they have different meanings and implications in each context. "Commitment" in the federal budget refers to the legal obligation to spend funds, whereas "appropriations" in state and local government refers to the actual allocation of funds for specific purposes.

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  • 14. 

    Which of the following is the highest level of GAAP for the federal government?

    • The FASB's implementation guidelines

    • The FASAB's concepts statements

    • The FASAB's technical bulletins

    • The FASB standards if adopted by FASAB

    Correct Answer
    A. The FASAB's technical bulletins
    Explanation
    The FASAB's technical bulletins are not the highest level of GAAP for the federal government. The highest level of GAAP for the federal government is the FASAB's standards if adopted by FASAB.

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  • 15. 

    Which of hte following is not a component of a consolidated performance and accountability report (PAR)?

    • MD&A

    • The basic financial statements

    • A transmittal letter from the agency head

    • Statistical information section

    Correct Answer
    A. Statistical information section
    Explanation
    A consolidated performance and accountability report (PAR) typically includes various components that provide a comprehensive overview of an organization's performance and financial accountability. These components usually consist of the management's discussion and analysis (MD&A), the basic financial statements, and a transmittal letter from the agency head. However, the statistical information section is not typically included in a PAR. This section would typically contain additional non-financial data and statistics that may be relevant to the organization's performance but are not considered essential components of the PAR.

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  • 16. 

    Which of the following statements is true about the US government-wide financial report?

    • Since 1997, the financial statements of the US government as a whole have been audited by an external CPA firm

    • The majority of the 24 major federal agencies required to be audited have received unqualified audit opinions

    • The Comptroller General of the US has rendered a disclaimer of opinion on the US government's consolidated financials statements for as long as that office has audited those statements

    • None of the above statements are true

    Correct Answer
    A. The Comptroller General of the US has rendered a disclaimer of opinion on the US government's consolidated financials statements for as long as that office has audited those statements
    Explanation
    The correct answer is that the Comptroller General of the US has rendered a disclaimer of opinion on the US government's consolidated financial statements for as long as that office has audited those statements. This means that the Comptroller General has not been able to express an opinion on the accuracy and reliability of the government's financial statements.

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  • 17. 

    The "net position" of a federal agency may include all of the following components, except:

    • Unexpended appropriations.

    • Cumulative results of operations.

    • Appropriations represented by undelivered orders and unobligated balances.

    • Fund balances with the U.S. Treasury.

    Correct Answer
    A. Fund balances with the U.S. Treasury.
    Explanation
    The net position of a federal agency includes unexpended appropriations, cumulative results of operations, and appropriations represented by undelivered orders and unobligated balances. However, fund balances with the U.S. Treasury are not included in the net position.

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  • 18. 

    In federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a (an):

    • Obligation

    • Apportionment

    • Commitment

    • Allotment

    Correct Answer
    A. Commitment
    Explanation
    A commitment in federal government accounting refers to the recording of the estimated amount of equipment before actually placing an order or entering into a contract. This allows the government to plan and budget for future expenses. It is an important step in the procurement process as it helps in ensuring that funds are available and allocated appropriately.

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  • 19. 

     Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The responsibility for setting accounting and reporting standards for federal agencies does not primarily rest with the Federal Accounting Standards Advisory Board. The correct answer is False.

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 03, 2013
    Quiz Created by
    Lizzie_piu
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