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.

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 measures proprietary accounts on the accrual basis to better promote agency management, while budgetary transactions are also recorded alongside financial transactions with external parties. The system does not involve keeping separate books on a tax basis or a GAAP basis, nor does it rely solely on double-entry accounting without the use of proprietary and budgetary accounts.

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