Accounting for Governmental & Nonprofit Entities 16th Edition by Reck

Topics: Federal government of the United States, Financial statements, Balance sheet Pages: 40 (5100 words) Published: August 31, 2014
Chapter 17
Accounting and Reporting for the Federal Government

True / False Questions
Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board.    
True    False
By law, federal agencies must incorporate the accounting standards (GAAP) established for the federal government into their financial management systems.    
True    False
The objectives of federal financial reporting are to assist report users in evaluating budgetary integrity, operating performance, stewardship, and adequacy of systems and controls.    
True    False
Federal departments and agencies should utilize the U.S. Government Standard General Ledger as the account structure for their accounting systems.    
True    False
Current FASAB standards distinguish intragovernmental assets from governmental assets and entity assets from nonentity assets.    
True    False
Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.    
True    False
Federal government accounting standards require the measurement of expenses rather than expenditures.    
True    False
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.    

True    False
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.    

True    False
The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.    
True    False
The financial statements of the U.S. government are prepared using generally accepted accounting principles promulgated by the Governmental Accounting Standards Board.    
True    False
Federal government agencies prepare a management's discussion and analysis (MD&A) to be included in their general purpose federal financial report.    
True    False
Under SFFAS No. 2, all federal agencies are defined as separate reporting entities for financial statement preparation and reporting purposes.    
True    False
Objectives that are identified by SFFAS No. 1 for federal financial reporting include budgetary integrity, operating performance, transparency, and stewardship.    
True    False
Heritage assets are defined as beneficial investments of the federal government in items such as nonfederal physical property, human capital, and research and development.    
True    False
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.    
True    False

Multiple Choice Questions
Which of the following is not a part of the FASAB due process for establishing a federal financial accounting standard?    

Public comment on a discussion memorandum.

Issuing an exposure draft.

Unanimous approval by the FASAB.

Support (or lack of opposition) of the standard by the three principals (Comptroller General, Secretary of the Treasury, and Director of the Office of Management and Budget).

FASAB has identified four major user groups of federal financial reports, they are    

Congress, executives, program managers, and citizens.

Congress, executives, citizens, and bond rating agencies.

Congress, program managers, foreign governments, and citizens.

Congress, program managers, bond rating agencies, and political parties.

The "net position" of a federal agency may include all of the...
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