16.

Which of the following federal officials is a "principal" of the Joint Financial Management Improvement Program who considers and approves or disapproves accounting and reporting standards recommended by the Federal Accounting Standards Advisory Board? A. Chair of the Federal Accounting Standards Advisory Board. B. Secretary of the Interior. C. Comptroller General. D. All of the above.

Content: Concept Level: Easy Wilson - Chapter 12 #16

17. FASAB has identified four major user groups of federal financial reports, they are A. Congress, executives, program managers, and citizens. B. Congress, executives, citizens, and bond rating agencies. C. Congress, program managers, foreign governments, and citizens. D. Congress, program managers, bond rating agencies, and political parties.

Content: Concept Level: Medium Wilson - Chapter 12 #17

18. The "net position" of a federal agency may include which of the following components? A. Unexpended Appropriations. B. Cumulative Results of Operations.

C. Appropriations represented by undelivered orders and unobligated balances. D. All of the above.

Content: Concept Level: Easy Wilson - Chapter 12 #18

19. Which of the following is not an objective identified in FASAB Statement of Accounting and Reporting Concepts No. 1? A. To assist report users in evaluating budgetary integrity. B. To assist report users in evaluating the extent to which tax burdens have changed. C. To assist report users in evaluating stewardship. D. To assist report users in evaluating operating performance.

Content: Concept Level: Medium Wilson - Chapter 12 #19

20. Which of the following statements most accurately describes the dual-track accounting system used in federal agency accounting? A. Recording internal budgetary transactions along with financial transactions with external parties. B. Use of double-entry accounting. C. Maintaining self-balancing sets of proprietary and budgetary accounts and recording the effects of transactions on both available budgetary resources and proprietary accounts, the latter measured on the accrual basis to better promote agency management. D. Keeping separate books, one on a tax basis and the other on a GAAP basis.

Content: Concept Level: Medium Wilson - Chapter 12 #20

21. 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) A. Obligation. B. Apportionment. C. Allotment. D. Commitment

Content: Concept Level: Medium Wilson - Chapter 12 #21

A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by this agency.

Wilson - Chapter 12

22. When the order is placed the required journal entry (or entries) will affect the accounts shown in what net amounts: A. Budgetary accounts: $14,400; Proprietary accounts: $14,400 B. Budgetary accounts: $14,400; Proprietary accounts: $14,800 C. Budgetary accounts: $14,400; Proprietary accounts: $0 D. Budgetary accounts: $0; Proprietary accounts: $0

Content: Compute Level: Medium Wilson - Chapter 12 #22

23. When the order is received the required journal entry (or entries) will affect the accounts shown in what net amounts: A. Budgetary Accounts: $14,400; Proprietary Accounts: $14,400 B. Budgetary Accounts: $14,400; Proprietary Accounts: $14,800 C. Budgetary Accounts: $400; Proprietary Accounts: $14,800 D. Budgetary Accounts: $0; Proprietary Accounts: $14,800

Content: Journal Entry Level: Medium Wilson - Chapter 12 #23

24. Which of the following accounts used in state and local government accounting is most like the federal budgetary account "Undelivered Orders"? A. Encumbrance. B. Expenditure. C. Appropriation. D. Reserve for Encumbrance.

Content: Concept Level: Medium Wilson - Chapter 12 #24

25. Which of the following financial statements is not required by OMB Bulletin No. 01-09?

A. Statement of budgetary resources. B. Statement of cash flows. C. Balance sheet. D. Statement of changes in net position.

Content: Concept Level: Medium Wilson - Chapter 12 #25

26. One of the purposes of the Federal Financial Management Improvement Act of 1996 enacted by Congress was to A. Establish a requirement that the financial statements of the federal government as a whole be audited. B. Improve the effectiveness of programs receiving federal funds. C. Establish generally accepted federal accounting principles. D. Rebuild the credibility and restore public confidence in the federal government.

Content: Concept Level: Medium Wilson - Chapter 12 #26

27. Which of the following persons has some responsibility for establishing and maintaining a sound financial structure for the federal government? A. Chief Financial Officer of the Congressional Budget Office. B. Chair of the Governmental Accounting Standards Board. C. Secretary of the Treasury.

D. Chair of the Federal Accounting Standards Advisory Board.

Content: Concept Level: Medium Wilson - Chapter 12 #27

28. The Comptroller General of the United States is the head of the: A. Government Accountability Office. B. Office of the Management and Budget. C. Congressional Budget Office. D. Federal Accounting Standards Advisory Board.

Content: Concept Level: Easy Wilson - Chapter 12 #28

29. The required report or statements in the general purpose federal financial report that addresses forward-looking information regarding the possible effects of currently known demands, risks, and uncertainties, and trends in the federal entity is (are): A. Basic statements. B. Required supplemental information. C. Management discussion and analysis. D. Related notes to the financial statements.

Content: Concept Level: Medium Wilson - Chapter 12 #29

30. Which of the following is an accurate list of the three perspectives from which the federal government can be viewed, as described in SFFAS No. 2 "Entity and Display?" A. Function, department, and program. B. Organizational, budget, and program. C. Budget, program, and line-item. D. Fund, activity, and account.

Content: Concept Level: Medium Wilson - Chapter 12 #30

31. 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: A. There are no significant differences. B. It is outside the general purpose federal financial report and is optional, not required. C. It is a part of the basic financial statements. D. Federal agencies should address the reporting entity's performance goals and results in addition to financial activities.

Content: Concept Level: Medium Wilson - Chapter 12 #31

32. Which of the following federal programs involve nonexchange transactions for which there is some accounting guidance on recording liabilities but for which much more research is needed? A. National parks. B. Social insurance.

C. Post offices. D. Heritage assets.

Content: Concept Level: Medium Wilson - Chapter 12 #32

33. Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency? A. Apportionment, allotment, appropriation, commitment, obligation, expended appropriation. B. Allotment, commitment, obligation, expended appropriation, apportionment. C. Appropriation, apportionment, allotment, commitment, obligation, expended appropriation. D. Commitment, obligation, appropriation, apportionment, allotment, expended appropriation.

Content: Concept Level: Medium Wilson - Chapter 12 #33

34. Which of the following statements is not true about the United States government-wide financial report? A. Since 1997, the financial statements of the U.S. Government as a whole have been audited by the GAO. B. The majority of the 24 major federal agencies required to be audited have received unqualified audit opinions by the GAO. C. The federal government received an unqualified opinion from the GAO on the most recent financial statements government as a whole.

D. The Comptroller General of the United States has rendered a disclaimer of opinion on the U.S. Government's consolidated financial statements for as long as that office has audited these statements.

Content: Concept Level: Medium Wilson - Chapter 12 #34

35. Which of the following is required by OMB Bulletin No. 01-09 in the basic financial statements? A. Statement of changes in net position. B. Statement of net assets. C. Statement of revenues, expenditures, and changes in fund balances. D. Statement of activities.

Content: Concept Level: Medium Wilson - Chapter 12 #35

36. The following are key terms in Chapter 12 that relate to accounting and financial reporting for federal agencies and the federal government: A. Apportionment B. Governmental assets C. Stewardship land D. Intragovernmental assets E. Heritage assets F. Expended appropriation

G. Budgetary resources H. Stewardship investments 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. _____ 1. Federal capital assets that possess educational, cultural, or natural characteristics _____ 2. Claims by or against a reporting entity that arise from transactions between that entity and other reporting entities _____ 3. Assets that arise from transactions of the federal government or an entity of the federal government with nonfederal entities _____ 4. A distribution made of a federal appropriation by the Office of Management and Budget into amounts available for specified time periods _____ 5. Federal land other than that included in general property, plant and equipment 1. E, 2. D, 3. B, 4. A, 5. C