Question 1

A federal agency prepared the following schedule showing the status of federal appropriations at the end of the first quarter:
 What is the total amount allotted to subunits or programs within the agency during the first quarter of the year?

Accepted Answer

The answer of A federal agency prepared the following schedule...

Question 2

Assume the director of a federal agency allots a portion of the agency's apportionment to subunits within the agency.The journal entries at the agency level to record this event will include:

Accepted Answer

The answer of Assume the director of a federal agency...

Question 3

Which of the following steps in the federal government's budgetary authority process is most similar to the recording of encumbrances by state and local governments?

Accepted Answer

Recording encumbrances by state and local governments is similar to obligation in the federal government's budgetary authority process, as in both cases, the government commits funds for future expenses. Obligation is the point at which a binding agreement is made through a contract or purchase order, and funds are set aside to fulfill that obligation, similar to how state and local governments record encumbrances to set aside funds for future expenditures. Apportionment is the process of dividing appropriations into time periods for which they are available, while allotment is the distribution of funds to individual agencies or departments. Appropriation is the act of Congress authorizing the expenditure of funds for a specific purpose.

Question 4

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

Accepted Answer

Only the receipt and approval of goods or services will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency. The establishment of the total appropriation by OMB is only recorded in the budgetary accounts.

Question 5

Which of the following are included in the Financial Snapshot section of the federal government's Citizen's Guide to the Financial Report of the US Government?

Accepted Answer

Both the Net Operating Cost of the federal government and the Net Position (assets minus liabilities) of the federal government are included in the Financial Snapshot section of the Citizen's Guide to the Financial Report of the US Government.

Question 6

A federal agency prepared the following schedule showing the status of federal appropriations at the end of the first quarter:
 What is the total amount of purchase orders placed in the first quarter of the year?

Accepted Answer

The answer of A federal agency prepared the following schedule...

Question 7

Assume the OMB apportions 1/4^th of an appropriation to a federal agency for the first quarter of the fiscal year.The journal entries at the agency level to record this event will include:

Accepted Answer

The answer of Assume the OMB apportions 1/4^th of an...

Question 8

Assume a federal agency has $ 150,000 of unobligated budgetary authority at the end of the fiscal year that must be returned to Treasury.The journal entries at the agency level to record this event will include:

Accepted Answer

A credit to the account Appropriations withdrawn indicates that the unobligated budgetary authority is being returned to Treasury. A credit to the account Fund Balance with Treasury indicates that the agency's fund balance with Treasury is decreasing as a result of the return of the unobligated budgetary authority. Therefore, both (a) and (b) are needed to properly record the event.

Question 9

Which of the following steps in the budgetary authority process occurs when a federal agency issues a purchase order?

Accepted Answer

Obligation occurs when a federal agency issues a purchase order. Apportionment is the process of dividing appropriations into smaller portions for specific time periods or programs, allotment is the distribution of budgetary resources to individual agencies or departments, and appropriation is the act of Congress designating funds for a specific purpose or program.

Question 10

Assume a federal agency places orders for contracted services supporting a federal program.The journal entries at the agency level to record this event will include:

Accepted Answer

When a federal agency places orders for contracted services, it records an obligation. This is reflected as a credit to the account "Obligations - Undelivered Orders" to indicate that funds have been committed but not yet expended.

Question 11

Assume a federal agency receives supplies that had been previously ordered that will be used to support a federal program.The journal entries at the agency level to record this event will include:

Accepted Answer

The answer of Assume a federal agency receives supplies that...

Question 12

Assume a federal agency places orders for contracted services supporting a federal program.The journal entries at the agency level to record this event will include:

Accepted Answer

A debit to the account Allotments is recorded to decrease the budget authority available for the agency to use. A credit to the account Obligations - Undelivered Orders is recorded to recognize that the agency has obligated funds for future payment to the contractor for the services to be provided. Both of these entries would be made to accurately reflect the budgetary impact of the agency's placement of orders for contracted services.

Question 13

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

Accepted Answer

When Treasury notifies the agency that Congress passed legislation signed by the President) granting budgetary authority to fund its activities the journal entry in the budgetary accounts is a debit to Appropriations realized and a credit to Unapportioned Authority. The proprietary accounts would record be a debit to Fund Balance with Treasury and a credit to Unexpended appropriations. Placing orders for goods would only be recorded in the budgetary accounts.

Question 14

Assume a spending bill has been passed by Congress and signed by the President.The journal entries at the agency level to record this event will include:

Accepted Answer

The journal entry would be a debit to Fund Balance with Treasury and a credit to Unexpended appropriations.

Question 15

Which of the following steps in the budgetary authority process occurs when the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending?

Accepted Answer

Apportionment is the step in the budgetary authority process where the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending. This step is followed by allotment, obligation, and finally, expenditure. Appropriation occurs at an earlier stage when Congress authorizes the spending of funds for a specific purpose.

Question 16

At what point in the budgetary authority process may a federal agency or its subunits begin to place orders for goods and services?

Accepted Answer

The answer of At what point in the budgetary authority...

Question 17

Which of the following statements appearing in the federal government's consolidated financial report are prepared on the accrual basis of accounting?

Accepted Answer

The balance sheet is prepared using the accrual basis of accounting as it reports assets, liabilities, and equity at a specific point in time based on their economic values, regardless of when the cash transactions occurred. The Statement of Changes in Cash Balance from Unified Budget and Other Activities, on the other hand, is prepared using the cash basis of accounting as it reports the inflows and outflows of cash during a specific period.

Question 18

Which of the following steps in the budgetary authority process occurs when Congress passes a spending bill which is signed by the President?

Accepted Answer

Appropriation is the step in which Congress passes a spending bill which is signed by the President, authorizing the government to spend money. Apportionment is the step in which the Office of Management and Budget distributes funds to various agencies based on Congressional appropriations. Allotment is the step in which agencies distribute funds among their various programs and activities. Obligation is the step in which agencies commit to spending a specific amount of money on a specific program or activity.

Question 19

Assume an outstanding account payable of a federal agency is paid.The journal entries at the agency level to record this event will include:

Accepted Answer

The answer of Assume an outstanding account payable of a...

Question 20

Which of the following are true of the budgetary accounts of the federal government?

Accepted Answer

Budgetary accounts are used to trace federal expenditures to the budgetary authority granted by Congress. However, they do not use the accrual basis of accounting to present the financial position and results of operations.

Quiz 14: Financial Reporting by the Federal Government

A federal agency prepared the following schedule showing the status of federal appropriations at the end of the first quarter: What is the total amount allotted to subunits or programs within the agency during the first quarter of the year?

Assume the director of a federal agency allots a portion of the agency's apportionment to subunits within the agency.The journal entries at the agency level to record this event will include:

Which of the following steps in the federal government's budgetary authority process is most similar to the recording of encumbrances by state and local governments?

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

Which of the following are included in the Financial Snapshot section of the federal government's Citizen's Guide to the Financial Report of the US Government?

A federal agency prepared the following schedule showing the status of federal appropriations at the end of the first quarter: What is the total amount of purchase orders placed in the first quarter of the year?

Assume the OMB apportions 1/4th of an appropriation to a federal agency for the first quarter of the fiscal year.The journal entries at the agency level to record this event will include:

Assume a federal agency has $ 150,000 of unobligated budgetary authority at the end of the fiscal year that must be returned to Treasury.The journal entries at the agency level to record this event will include:

Which of the following steps in the budgetary authority process occurs when a federal agency issues a purchase order?

Assume a federal agency places orders for contracted services supporting a federal program.The journal entries at the agency level to record this event will include:

Assume a federal agency receives supplies that had been previously ordered that will be used to support a federal program.The journal entries at the agency level to record this event will include:

Assume a federal agency places orders for contracted services supporting a federal program.The journal entries at the agency level to record this event will include:

Which of the following events will result in a journal entry being recorded in both the budgetary and proprietary accounts of a federal agency?

Assume a spending bill has been passed by Congress and signed by the President.The journal entries at the agency level to record this event will include:

Which of the following steps in the budgetary authority process occurs when the Office of Management and Budget establishes the quarterly amount available to a federal agency for spending?

At what point in the budgetary authority process may a federal agency or its subunits begin to place orders for goods and services?

Which of the following statements appearing in the federal government's consolidated financial report are prepared on the accrual basis of accounting?

Which of the following steps in the budgetary authority process occurs when Congress passes a spending bill which is signed by the President?

Assume an outstanding account payable of a federal agency is paid.The journal entries at the agency level to record this event will include:

Which of the following are true of the budgetary accounts of the federal government?

Assume the OMB apportions 1/4^th of an appropriation to a federal agency for the first quarter of the fiscal year.The journal entries at the agency level to record this event will include: