Chap014 - Chapter 14 Financial Reporting by the Federal...

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Chapter 14 – Financial Reporting by the Federal Government True / False Questions 1. Accounting standards for the federal government and its agencies are established by the Governmental Accounting Standards Board. Answer: False 2. Accounting standards for the federal government and its agencies are established by the Government Accountability Office. Answer: False 3. The Treasury Department maintains a government-wide system of accounts and prepares the federal government’s consolidated financial statements. Answer: True 4. The Federal Accounting Standards Advisory Board was formed by the Secretary of the Treasury, Director of OMB, and Comptroller General. Answer: True 5. Federal agencies must include a Managements’ Discussion and Analysis in their financial report. Answer: True 6. Federal agencies must include a Statement of Cash Flows in their annual report. Answer: False 1
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Chapter 14 – Financial Reporting by the Federal Government 7. The difference between assets and liabilities of a federal agency is comprised of Cumulative Results of Operations and Unexpended Appropriations . Answer: True 8. The difference between assets and liabilities of a federal agency is comprised of Net Assets and may be classified as Unrestricted, Restricted, and Invested in Capital Assets Net of Related Debt. Answer: False 9. The Statement of Net Cost of a federal agency is prepared on the accrual basis of accounting. Answer: True 10. The Statement of Changes in Net Position of a federal agency presents the same information as a Statement of Cash Flows for a state or local government. Answer: False 11. The Statement of Budgetary Resources for a federal agency presents a comparison of budgeted and actual revenues and expenditures. Answer: False 12. The Statement of Custodial Activity is not required of every federal agency but is prepared by the SEC, IRS and Customs. Answer: True 13. The Statement of Operations and Changes in Net Position for the consolidated report of the federal government is prepared on the budgetary basis of accounting. Answer: False 2
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Chapter 14 – Financial Reporting by the Federal Government 14. The budgetary authority process for a federal agency begins with an appropriation by Congress. Answer: True 15. Apportionments are issued by the OMB and establish the amount of an appropriation that will be available each quarter. Answer: True 16. Allotments are made at the agency level and assign portions of the appropriation to subunits or programs. Answer: True 17. The budgetary accounts of a federal agency reflect the status of an appropriation. Answer: True 18. The budgetary accounts of a federal agency are used to prepare the accrual basis financial statements of the federal government and its agencies. Answer:
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This note was uploaded on 12/09/2011 for the course ACC 439 taught by Professor Briangreen during the Fall '11 term at University of Michigan-Dearborn.

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Chap014 - Chapter 14 Financial Reporting by the Federal...

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