33) 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. At the time the order is placed, what is the net
effect on the budgetary and proprietary track accounts?
A) Budgetary accounts: $14,400; Proprietary accounts: $14,400.
B) Budgetary accounts: $14,400; Proprietary accounts: $0.
C) Budgetary accounts: $14,400; Proprietary accounts: $14,800.
D) Budgetary accounts: $0; Proprietary accounts: $0.
34) 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. At the time the order is received, what is the
net effect on the budgetary and proprietary track accounts?
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.
35) Which of the following financial statements is not required by OMB Circular A-136?
A) Statement of budgetary resources.
B) Statement of cash flows.
C) Balance sheet.
D) Statement of changes in net position.
36) One of the purposes of the Federal Financial Management Improvement Act of 1996 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.
37) Which of the following officials has shared responsibility under federal law 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.
38) The Comptroller General of the United States is the head of the:
A) Office of the Management and Budget.
B) Government Accountability Office.
C) Congressional Budget Office.
D) Federal Accounting Standards Advisory Board.
39) Where would federal agencies report information concerning their performance goals and
performance results, along with their future challenges?
A) Other accompanying information.
B) Required supplemental information.
C) Management discussion and analysis.
D) Notes to the financial statements.
40) As described in Statement of Federal Financial Accounting Concepts (SFFAC) No. 2 “Entity
and Display,” which of the following is an accurate list of the three perspectives from which the
federal government can be viewed?
A) Function, department, and program.
B) Organization, budget, and program.
C) Budget, program, and line-item.
D) Fund, activity, and account.
41) 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) It includes information about the agency’s performance goals and results in addition to financial
activities.
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 and, as a result, it is audited along with the financial
statements.
D) There are no significant differences.
42) Which of the following federal financial statements relies primarily on the use of actuarial
assumptions and long-range projections for the information reported on the statement?
A) Balance sheet.
B) Statement of social insurance.
C) Statement of custodial activity.
D) Statement of fiduciary net assets.
43) 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.
44) 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 unmodified
audit opinions by the GAO.
C) 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.
D) The federal government received an unmodified opinion from the GAO on the most recent
financial statements of the U.S. government as a whole.
45) Which of the following is required by OMB Circular A-136 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 financing.
46) Which of the following is an example of a stewardship asset?
A) The Treasury Building.
B) The Lincoln Memorial.
C) The George Washington Bridge.
D) A stealth fighter jet.
47) A federal agency issued $1,000 in purchase orders for goods and services. How would this
transaction be recorded?
A) In the budgetary track debit Commitments $1,000, and credit Undelivered Orders $1,000.
B) In the proprietary track debit Operating Materials and Supplies $1,000, and credit Undelivered
Orders $1,000.
C) In the budgetary track debit Unapportioned Authority $1,000, and credit Undelivered Orders
$1,000.
D) In the budgetary track debit Commitments $1,000, and credit Undelivered Orders $1,000; in the
proprietary track debit Estimated Operating Materials and Supplies $1,000, and credit Undelivered
Orders $1,000.
48) A federal agency received $900,000 as its annual appropriation from Congress. How would
the appropriation be recorded by the agency?
A) In the budgetary track debit Fund Balance with Treasury $900,000, and credit Unapportioned
Authority $900,000; in the proprietary track debit Other Appropriations Realized $900,000, and
credit Unexpended Appropriations $900,000.
B) In the budgetary track debit Other Appropriations Realized $900,000, and credit Unexpended
Appropriations; in the proprietary track debit Fund Balance with Treasury $900,000, and credit
Unapportioned Authority $900.000.
C) In the budgetary track debit Other Appropriations Realized $900,000, and credit
Unapportioned Authority $900,000. In the proprietary track no entry is recorded since the
transaction involves the budget.
D) In the budgetary track debit Other Appropriations Realized $900,000, and credit
Unapportioned Authority $900,000; in the proprietary track debit Fund Balance with Treasury,
and credit Unexpended Appropriations.
49) A federal agency recorded the receipt of supplies at an actual cost of $57,000. At the time the
purchase orders were issued it was estimated the supplies would cost $56,000. How would this
transaction be recorded in the budgetary track accounts?
A) It would not be recorded in the budgetary track; it would only be recorded in the proprietary
track.
B) Debit Undelivered Orders $57,000 and credit Expended Authority $57,000.
C) Debit Undelivered Orders $56,000, debit Allotments $1,000, and credit Expended Authority
$57,000.
D) Debit Undelivered Orders $57,000, credit Allotments $1,000, and credit Expended Authority
$56,000.
50) A federal agency recorded the receipt of supplies at an actual cost of $57,000. At the time the
purchase orders were issued it was estimated the supplies would cost $56,000. How would this
transaction be recorded in the proprietary track accounts?
A) It would not be recorded in the proprietary track; it would only be recorded in the budgetary
track.
B) Debit Operating Materials and Supplies $57,000 and credit Accounts Payable $57,000.
C) Debit Unexpended Appropriations $57,000 and credit Appropriations Used $57,000.
D) Debit Operating Materials and Supplies $57,000 and Unexpended Appropriations $57,000;
credit Accounts Payable $57,000 and Appropriations Used $57,000.
51) Which of the following federal government fund groups is most similar to a state and local
government custodial fund?
A) Deposit Fund.
B) General Fund.
C) Special Fund.
D) Trust Fund.
52) For each of the following definitions, indicate the key term from the list that best matches by
placing the appropriate definition.
A. Apportionment
B. Budgetary resources
C. Expended appropriation
D. Governmental assets
E. Heritage assets
F. Intragovernmental assets
G. Stewardship investments
H. Stewardship land
________1. Federal capital assets that possess educational, cultural, or natural characteristics
________2. Claims by or against a reporting entity that arise from transactions between the 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. Dividing a federal appropriation into amounts that are available during specific
periods
________5. Federal land other than that included in general property, plant, and equipment
________6. New budgetary authority for the period plus unobligated budgetary authority carried
over from the prior period and offsetting collections, if any, plus or minus any budgetary
adjustments
________7. An account used when the goods or services have been received