Which of the following statements most accurately describes the dual-track accounting system used in federal agency accounting?
A) Recording internal budgetary transactions and proprietary transactions with external parties on a modified accrual basis of accounting.
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.
D) Keeping separate books, one on a tax basis and the other on a GAAP basis.

Question

Quizplus · Accepted Answer

The dual-track accounting system in federal agency accounting involves maintaining self-balancing sets of proprietary and budgetary accounts and recording the effects of transactions on both available budgetary resources and proprietary accounts. This system helps in effective financial management and transparency in government accounting practices.

Which of the Following Statements Most Accurately Describes the Dual-Track