Question 1

At the present time,the conceptual framework for the federal government and its agencies does not provide definitions of the basic elements of the financial statements.

Accepted Answer

The conceptual framework for the federal government and its agencies does include definitions of the basic elements of the financial statements, such as assets, liabilities, equity, revenues, and expenses, to ensure clarity and consistency in financial reporting.

Question 2

According to FASAB,entity assets are defined as those assets arising from transactions between federal entities.

Accepted Answer

FASAB defines entity assets as those assets controlled by an entity, regardless of the type of transaction that resulted in the asset.

Question 3

The purpose of revolving funds of the federal government is similar to that of proprietary funds of state and local governments.

Accepted Answer

Both revolving funds of the federal government and proprietary funds of state and local governments are used to account for business-like activities that generate revenue and incur expenses. This allows for better financial management and decision-making.

Question 4

Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.

Accepted Answer

The answer of Fund balances of a federal agency's various...

Question 5

Unexpended appropriations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation,or which has been obligated but not yet expended.

Accepted Answer

Unexpended appropriations represents the amount of appropriations still available for obligation, or which has been obligated but not yet expended. Therefore, the statement is true.

Question 6

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

Accepted Answer

Federal agencies are required to use the accounting standards established for the federal government, known as Generally Accepted Accounting Principles (GAAP), in their financial management systems. This ensures consistency and accuracy in financial reporting for the government as a whole.

Question 7

The financial statements of the U.S.government are prepared using generally accepted accounting principles promulgated by the Governmental Accounting Standards Board.

Accepted Answer

The financial statements of the U.S. government are prepared in accordance with principles promulgated by the Federal Accounting Standards Advisory Board (FASAB), not the Governmental Accounting Standards Board (GASB), which is for state and local governments.

Question 8

Cumulative results of operations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation,or which has been obligated but not yet expended.

Accepted Answer

Cumulative results of operations represent the net difference over time between the federal agency's expenses and revenues, including appropriations used and not the amount of appropriations still available for obligation. The component that represents appropriations still available for obligation or which has been obligated but not yet expended is typically referred to as "unexpended appropriations."

Question 9

The objectives of federal financial reporting are to assist report users in evaluating budgetary integrity,operating performance,stewardship,and adequacy of systems and controls.

Accepted Answer

The statement correctly identifies the objectives of federal financial reporting.

Question 10

Social Security is an example of a trust fund administered by the federal government.

Accepted Answer

Social Security is a trust fund established by the federal government to provide retirement, disability, and survivor benefits to eligible individuals. The fund is administered by the Social Security Administration under the authority of the federal government.

Question 11

Under SFFAC No.2,all federal agencies are defined as separate reporting entities for financial statement preparation and reporting purposes.

Accepted Answer

SFFAC No. 2, "Entity and Display," allows for the possibility that not all federal agencies are defined as separate reporting entities for financial statement preparation and reporting purposes. It provides criteria for determining which organizations should be included in the financial statements of the reporting entity, meaning some agencies or components might be consolidated for reporting purposes.

Question 12

An expended appropriation occurs when cash has been disbursed to pay for a good or service.

Accepted Answer

An expended appropriation refers to the amount of the appropriation that has been legally obligated by the government for payment, not necessarily the disbursement of cash. Disbursement occurs after the obligation when the payment is actually made.

Question 13

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

Accepted Answer

The answer of Responsibility for setting accounting and reporting standards...

Question 14

Similar to state and local governments,the federal government uses funds to demonstrate funds are being used for their intended purposes.

Accepted Answer

This statement is true. The federal government, like state and local governments, uses funds to show that the money is being used for the intended purpose, such as infrastructure projects or social programs. This is often done through documentation and reporting requirements.

Question 15

An example of a federal government general property,plant,and equipment asset would be Yellowstone National Park.

Accepted Answer

The answer of An example of a federal government general...

Question 16

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

Accepted Answer

"Commitment" and "appropriations" are not synonymous; "commitment" refers to the planning or earmarking of funds for specific purposes, while "appropriations" are the legal authorization by a legislative body to spend money for particular purposes.

Question 17

Objectives that are identified by SFFAC No.1 for federal financial reporting include budgetary integrity,operating performance,transparency,and stewardship.

Accepted Answer

The answer of Objectives that are identified by SFFAC No.1...

Question 18

Heritage assets are defined as beneficial investments of the federal government in items such as nonfederal physical property,human capital,and research and development.

Accepted Answer

Heritage assets are defined as resources that have historical, natural, cultural, educational, or artistic value that the federal government is responsible for preserving. They do not include investments in physical property, human capital, or research and development.

Question 19

Federal departments and agencies should utilize the U.S.Government Standard General Ledger as the account structure for their accounting systems.

Accepted Answer

The use of the U.S. Government Standard General Ledger is mandated by the U.S. Treasury for all federal departments and agencies.

Question 20

Federal government agencies prepare a management's discussion and analysis (MD&A)to be included in their general purpose federal financial report.

Accepted Answer

Federal government agencies are required to prepare an MD&A to be included in their general purpose federal financial report under the Federal Accounting Standards Advisory Board (FASAB) Handbook.

Quiz 17: Accounting and Reporting for the Federal Government Glossary