Test Bank Chapter 14 12th ed PDF

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Chapter 14Financial Reporting by the Federal GovernmentTrue / False Questions The Department of Treasury maintains a government-wide system of accounts and prepares the federal government’s consolidated financial statements. Answer: True Accounting standards for the federal government and its agenci...

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Cha p t e r1 4–Fi n a nc i a lRe p or t i ngb yt h eF e d e r a lGo v e r nme nt

Chapter 14 Financial Reporting by the Federal Government Tr ue/Fal s eQue s t i ons 1.TheDe pa r t me ntofTr e a s ur yma i nt a i nsag o v e r nme nt wi des y s t e mofa c c ount sa nd pr e pa r e st hef e de r a lg o v e r nme nt ’ sc on s ol i da t e dfina nc i a ls t a t e me nt s . Answer: True 2.Ac c ou n t i n gs t a n da r d sf ort hef e de r a lg o v e r nme nta n di t sa g e nc i e sa r ee s t a bl i s he db yt h e Fe d e r a lAc c ou nt i n gSt a n da r d sAd vi s or yBo a r d . Answer: True 3 .Ac c o un t i n gs t a n da r d sf ort hef e de r a lg o v e r nme nta n di t sa g e nc i e sa r ee s t a bl i s he db yt h e Go v e r nme n tAc c o un t a b i l i t yOffic e . Answer: False 4 .TheFe de r a lAc c o un t i n gSt a nd a r dsAd v i s o r yBo a r dwa sf or me db yt h eSe c r e t a r yoft he Tr e a s u r y ,Di r e c t orofOMB,a n dCo mp t r ol l e rGe ne r a l . Answer: True 5 .Fe de r a la g e n c i e smu s ti n c l u deaMa n a g e me n t s ’Di s c u s s i o na n dAn a l y s i si nt h e i rfin a nc i a l r e p or t . Answer: True 6 .TheSt a t e me nto fNe tCo s tofaf e de r a la g e n c yi spr e p a r e dont hea c c r u a lba s i so f a c c o un t i n g . Answer: True 7 .Fe de r a la g e n c i e smu s ti n c l u deaSt a t e me nto fCa s hFl o wsi nt he i ra n n ua lr e po r t . Answer: False

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

8 .Thedi ffe r e nc ebe t we e na s s e t sa n dl i a bi l i t i e so faf e de r a la g e nc yi sc omp r i s e dofFu n d Ba l a nc ea n dma ybec l a s s i fie da sNo ns p e nd a bl e ,Co mmi t t e d,Re s t r i c t e d,As s i g n e da n d Una s s i g ne d . Answer: False 9 .Thene tpo s i t i onofaf e de r a la g e nc yi sc o mpr i s e dofCu mul at i v eRe s u l t so fOp e r at i o nsa n d Une x p e nd e dAp pr o p r i at i on s . Answer: True 1 0 .Th eSt a t e me n tofCh a n g e si nNe tPo s i t i onofaf e de r a la g e nc ys h ou l da r t i c u l a t ewi t hn e t p o s i t i ono nt h ea g e nc y ’ sBa l a n c eSh e e t . Answer: True 1 1 .Th eSt a t e me n tofBu d g e t a r yRe s o ur c e sf oraf e de r a la g e nc yi spr e pa r e do nt hea c c r u a l b a s i s . Answer: False 1 2 .Th eSt a t e me n tofCu s t o di a lAc t i v i t yi sn o tr e q u i r e do fe v e r yf e d e r a la g e n c yb uti s p r e pa r e db yt heSEC,I RSa ndCu s t o ms . Answer: True 1 3 .Th eSt a t e me n tofOpe r a t i on sa n dCh a n g e si nNe tPos i t i o nf o rt h ec on s o l i da t e dr e po r to f t h ef e d e r a lg o v e r n me n ti spr e p a r e dont hemo d i fie da c c r ua lba s i sofa c c o un t i n g . Answer: False

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

1 4 .Th eb ud g e t a r ya u t h or i t ypr o c e s sf o raf e de r a la g e nc yb e gi n swi t ht h eTr e a s u r y De p a r t me nti s s u i n gawa r r a ntgr a nt i n gt h ea g e nc yt h ea u t ho r i t yt owi t h dr a wf u n ds . Answer: False 1 5 .App or t i o n me n t sa r ei s s ue db yt h eOMBa nde s t a bl i s ht h ea mo u ntofa na p pr o pr i a t i o n t h a twi l lbea v a i l a bl ee a c hq u a r t e r . Answer: True 1 6 .Al l ot me n t sa r ema d ea tt hea g e nc yl e v e la n da s s i g np or t i o n soft hea p pr o pr i a t i ont o s ub un i t sorpr o gr a ms . Answer: True 1 7 .Th ep r o p r i e t a r ya c c ou n t so faf e de r a la g e nc yr e fle c tt h es t a t usofa na pp r op r i a t i on . Answer: False 1 8 .Th ep r o p r i e t a r ya c c ou n t so faf e de r a la g e nc ya r eu s e dt op r e pa r et h ea c c r u a lb a s i s fin a nc i a ls t a t e me n t soft h ef e de r a lg o v e r nme nta ndi t sa g e n c i e s . Answer: True 1 9 .Th ea c c o un tFu ndBa l an c ewi t hT r e as ur yi sc l a s s i fie da sa na s s e tonaf e de r a la g e nc y ’ s b a l a nc es h e e t . Answer: True 2 0 .Th ea c c o un tObl i g at i on s–Und e l i v e r e dOr d e r si sc r e di t e dwh e ng o od sa n ds e r v i c e sa r e r e c e i v e d . Answer: False 2 1 .Typ i c a l l y ,b ud g e t a r ya ut ho r i t yt h a ti sn o tob l i g a t e db yaf e d e r a la g e n c yb e f or et h ee ndof t h efis c a ly e a rr o l l so v e ra ndi sa v a i l a b l ef o rt h ef ol l o wi n gfis c a ly e a r . Answer: False

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

Mul t i pl eChoi c eQue s t i o ns

2 2 .Wh i c hoft h ef ol l o wi n gi sr e s po ns i bl ef orpr e p a r i n gt h ef e d e r a lg o v e r nme nt ’ sc on s o l i da t e d fin a nc i a ls t a t e me n t s ? A) Go v e r nme ntAc c ou nt a b i l i t yOffic e B) Co n gr e s s i on a lBud g e tOffic e C) Offic eofMa n a g e me nta n dBu d g e t D)De p a r t me n tofTr e a s ur y Answer: D 2 3 .Wh i c hor g a ni z a t i o npr o mu l g a t e sS t at e me n t so fFe d e r a lFi na nc i alAc c ou n t i n gSt a nda r d s ? A)Th eAme r i c a nI ns t i t u t eofCe r t i fie dPub l i cAc c ou nt a n t s B)Th eFe d e r a lAc c o un t i n gSt a n da r d sAd vi s o r yBo a r d C)Th eU. S.Offic eo fMa n a g e me n ta ndBu d g e t D)TheU. S.Go v e r nme n tAc c o un t a bi l i t yOffic e Answer: B 2 4 .Wh i c hoft h ef ol l o wi n gi so n eoft h ep r i n c i pa lor g a ni z a t i on st ha tf or me dt heFe de r a l Ac c ou nt i n gSt a n da r d sAd vi s or yBoa r d? A) B) C) D)

De pa r t me ntofTr e a s ur y Co n g r e s s i on a lBu d g e tOffic e Ame r i c a nI ns t i t u t eofCP As Al lo ft h ea bo v e

Answer: A

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

2 5 .Wh i c hoft h ef ol l o wi n gi s( a r e )t r uer e g a r d i n gt heGo v e r n me ntAc c ou nt a bi l i t yOffic e ? A) Th eGAOe s t a bl i s h e sa c c o un t i n gs t a n da r d sa pp l i c a bl et ot hef e de r a lg o v e r nme nt a n di t sa g e nc i e s B) Th eGAOe s t a bl i s h e sa ud i t i n gs t a nda r d sa p pl i c a bl et ot h ef e d e r a lg o v e r n me n ta nd i t sa g e nc i e s C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: B 2 6 .Wh i c hoft h ef ol l o wi n gi sr e s po ns i bl ef ora ud i t i n gt hef e d e r a lg o v e r n me n t ’c on s o l i d a t e d fin a nc i a ls t a t e me n t s ? A) B) C) D)

Co n g r e s s i o na lBu d g e tOffic e USDe p a r t me n tofI n t e r na lAudi t Offic eo fMa n a g e me nta n dBu d g e t Go v e r nme ntAc c ou nt a b i l i t yOffic e

Answer: D 2 7 .Wh i c hoft h ef ol l o wi n go r g a ni z a t i on si s( a r e )p a r toft h ee x e c ut i v ebr a nc hoft h ef e de r a l g o v e r n me n t ? A) B) C) D)

Government Accountability Office Offic eofMa n a g e me n ta ndBu dg e t Bo t h( a )a nd( b )a bo v e Ne i t he r( a )no r( b)a bo v e

Answer: B

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

2 8 .Wh i c hoft h ef ol l o wi n gi s( a r e )t r uer e g a r d i n gFe de r a lAc c o un t i n gSt a nda r d sAd v i s o r y Boa r d ? A) Th eBoa r di sc a l l e d“ Ad v i s or y ”b e c a us eSt a t e me nt si s s u e db yt heb oa r da r e r e c o mme nd e da c c o un t i n gs t a n da r dsbu ta r en o t“ l e v e lAGAAP”f orf e de r a l a g e n c i e s B) St a t e me nt si s s u e db yt h ebo a r da r er e c o g ni z e da st h ehi g he s tl e v e lofa ut ho r i t a t i v e s t a nd a r df o rf e d e r a lg o v e r n me nte nt i t i e s C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: B 2 9 .Wh i c hoft h ef ol l o wi n gi sn o tr e q ui r e di naf e de r a la g e nc y ’ sfina n c i a lr e p or t ? A)St a t e me n tofBu d g e t a r yRe s o ur c e s B)St a t e me n tofCh a n g e si nNe tPo s i t i on C)St a t e me n tofCa s hFl o ws D)Ba l a n c eShe e t Answer: C 3 0 .Wh i c hoft h ef ol l o wi n gi s( a r e )t r uer e g a r d i n gt heCh i e fFi na n c i a lOffic e r sAc t ? A) B) C) D)

Th eAc tc r e a t e dt hep os i t i o nofc hi e ffina n c i a lo ffic e rwi t h i nf e d e r a la g e n c i e s Th eAc tc a l l e df o ra u di t so ft h efina n c i a ls t a t e me nt so ff e d e r a la g e nc i e s Bo t h( a )a nd( b )a bo v e Ne i t he r( a )no r( b)a bo v e

Answer: C 3 1 .Wh i c hoft h ef ol l o wi n gi snotr e q ui r e di naf e d e r a la g e n c y ’ sfina n c i a lr e p or t ? A) B) C) D)

Ma n a g e me n t ’ sDi s c us s i ona n dAn a l y s i s No t e st ot heFi n a n c i a lSt a t e me n t s Re q ui r e dSu pp l e me n t a lI n f o r ma t i on Bud g e t a r yCo mpa r i s o nSc h e du l e

Answer: D

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

3 2 .Wh i c hoft h ef ol l o wi n gs ho ul da pp e a rwi t hi nt hee q u i t y( n e tpo s i t i o n)s e c t i o no faf e d e r a l a g e n c yb a l a nc es h e e t ? A) B) C) D)

Ne tPos i t i o n–Une x pe n de dApp r op r i a t i o ns Fu ndBa l a nc ewi t hTr e a s u r y Bo t h( a )a nd( b )a bo v e Ne i t he r( a )no r( b)a bo v e

Answer: A 3 3 .Wh i c hoft h ef ol l o wi n ga c c o un t sa r eus e dt odi s p l a yt h edi ffe r e nc ebe t we e na s s e t sa n d l i a b i l i t i e si naf e de r a la g e nc yBa l a nc eSh e e t ? A) Unr e s t r i c t e dNe tPos i t i o n,Re s t r i c t e dNe tPo s i t i on ,a ndNe tI n v e s t me nti nCa pi t a l As s e t s . B) Un a s s i gn e d,As s i gn e d,Co mmi t t e d,Re s t r i c t e da ndNon s pe n d a b l ef u n db a l a nc e . C) Unr e s t r i c t e d ,Te mpo r a r i l yRe s t r i c t e d ,a ndPe r ma n e n t l yRe s t r i c t e dNe tAs s e t s D) Un e x pe n de dAp pr o pr i a t i o n sa ndCu mu l a t i v eRe s u l t sofOpe r a t i on s Answer: D 3 4 .Wh i c hoft h ef ol l o wi n gi st r uer e g a r di n gt h eBa l a n c eShe e to faf e d e r a la g e nc y ? A) Th eb a l a nc es he e ti sp r e pa r e du s i n gt h ee c o no mi cr e s ou r c eme a s ur e me n tf oc u s a n da c c r ua la c c o un t i n g . B) As s e t sa r eme a s u r e dont h emo d i fie da c c r ua lb a s i s . C) Th ed i ffe r e n c eb e t we e na s s e t sa ndl i a b i l i t i e si st e r me d“ Ne tAs s e t s ” . D) As s e t sa r es e pa r a t e db e t we e nc ur r e n ta n dno nc u r r e n t . Answer: A 3 5 .Wh i c hoft h ef ol l o wi n gi sa c c u r a t er e g a r d i n gaf e de r a la g e nc y ’ sSt a t e me nto fNe tCo s t s ? A) I ti ss i mi l a ri np r e s e n t a t i o nt ot heGASBg o v e r n me nt wi deSt a t e me n tofAc t i v i t i e s i nt h a te a r n e dr e v e n ue sa r es u bt r a c t e df r omc os t st od e t e r mi n et h ene tc os to f g o v e r n me n ts e r vi c e s . B) Co s t sa r er e po r t e dwi t h i nt heb r oa dc a t e g or i e so fc u r r e nt ,c a pi t a l ,a n dd e b ts e r vi c e . C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: A

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

3 6 .Wh i c hoft h ef ol l o wi n gi s( a r e )a c c u r a t er e g a r di n gaf e de r a la g e nc y ’ sSt a t e me nto fNe t Co s t s ? A) Ne tc os t sr e p or t e do nt heSt a t e me n tofNe tCos t sma yd i ffe rf r o mt ho s ea p pe a r i n g i nt h eSt a t e me nto fCha n g e si nNe tPo s i t i o n ,s i nc et h el a t t e ra r eme a s u r e dont he b u dg e t a r yb a s i s . B) Th eSt a t e me nto fNe tCo s t spr o v i de sgr e a t e rde t a i la bo utt hec o s toft h eAg e nc y ’ s p r o g r a ms ,b uta gr e e si nt o t a ln e tc o s tr e po r t e dont h eSt a t e me nto fCha n g e si nNe t Po s i t i o n C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: B 3 7 .Wh i c hoft h ef ol l o wi n gi s( a r e )a c c u r a t er e g a r di n gaf e de r a la g e nc y ’ sSt a t e me nto f Cha n g e si nNe tPo s i t i on ? A) Th es t a t e me nts t a r t swi t ht h eb e gi n ni n go fy e a rb a l a nc e si nt hen e tpo s i t i on a c c o un t sa n dr e c on c i l e st h e s et ot hee nd i n gb a l a n c e sa pp e a r i n go nt h ea g e nc y ’ s Ba l a n c eShe e t . B) Th es t a t e me ntdo e sno tr e po r tAp pr op r i at i on sRe c e i v e ds i n c et h i si sab u d g e t a r y a c c o un ta nddo e sn o ta ffe c tne tp o s i t i on . C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: A 3 8 .Wh i c hoft h ef ol l o wi n gi s( a r e )a c c u r a t er e g a r di n gaf e de r a la g e nc y ’ sSt a t e me nto f Bud g e t a r yRe s o ur c e s ? A)Th es t a t e me ntr e po r t st h es t a t usofbu d g e t a r yr e s o ur c e sa ty e a re nd . B)Ou t l a y sa r eme a s u r e du s i n gt hebu d g e t a r yba s i so fa c c o un t i n g . C)Bo t h( a )a nd( b ) D)Ne i t h e r( a )n or( b ) Answer: C 3 9 .Wh i c hoft hef o l l o wi n gf e de r a le n t i t i e swo ul dber e q u i r e dt opr e p a r eaSt a t e me ntof Cus t o di a lAc t i vi t y ? A)De p a r t me ntofDe f e ns e B)I nt e r n a lRe v e n ueSe r v i c e

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

C)De p a r t me ntofHo me l a n dSe c ur i t y D)De p a r t me n tofHe a l t ha ndHuma nSe r vi c e s Answer: B 4 0 .Fe de r a la g e n c i e st h a ta r er e q u i r e dt or e po r taSt a t e me ntofCu s t o di a lAc t i vi t yh a v e t r a ns a c t i o nst h a ta r es i mi l a rt owh i c hf u ndt y peo fas t a t eorl o c a lg o v e r nme n t ? A) B) C) D)

Ag e nc yf un ds I n t e r n a ls e r vi c ef u nd s Ca pi t a lpr o j e c t sf u nd s Pe r ma n e ntf u nd s

Answer: A 4 1 .Wh i c hoft h ef ol l o wi n gd oe sno ta pp e a ri nt h ef e de r a lg o v e r nme nt ’ sc on s ol i d a t e dfin a nc i a l r e p or t ? A)Ma n a g e me n t ’ sDi s c u s s i o na ndAna l y s i s B)St a t e me n tofSo c i a lI n s u r a nc e C)St a t e me n tofCa s hFl o ws D)Au di t o r sRe p or t Answer: C 4 2 .Wh i c hoft h ef ol l o wi n gs t a t e me nt sa p pe a r i n gi nt h ef e d e r a lg o v e r nme n t ’ sc on s o l i da t e d fin a nc i a lr e po r ta r epr e p a r e do nt hea c c r ua lba s i sofa c c ou nt i n g ? A) B) C) D)

Ba l a nc eShe e t St a t e me ntofOp e r a t i o n sa ndCh a n g e si nNe tPo s i t i on Bo t h( a )a nd( b )a bo v e Ne i t he r( a )no r( b)a bo v e

Answer: C

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

4 3 .Wh i c hoft h ef ol l o wi n ga r ei nc l u de di nt heFi na n c i a lSn a ps h o ts e c t i o no ft h ef e d e r a l g o v e r n me n t ’ sCi t i z e n ’ sGui d et ot heFi na nc i alRe p o r toft h eUSGov e r n me n t ? A) B) C) D)

Th eNe tOpe r a t i n gCos to ft h ef e d e r a lg o v e r nme n t Th eNe tPo s i t i on( a s s e t smi n usl i a b i l i t i e s )o ft h ef e d e r a lg o v e r nme nt Bo t h( a )a nd( b )a bo v e Ne i t he r( a )no r( b)a bo v e

Answer: C 4 4 .Wh i c hoft h ef ol l o wi n ga r et r ueo ft h epr o pr i e t a r ya c c ou n t soft hef e de r a lg o v e r nme nt ? A) Th ea c c ou nt sp r o v i dear e c or db ywh i c hf e de r a le x pe n di t u r e sma yb et r a c e dt ot h e b u dg e t a r ya u t h or i t ygr a nt e db yCon gr e s s . B) Th ea c c ou nt sa r eu s e dt op r e s e n tt h efina n c i a lp os i t i o na n dr e s u l t so fo p e r a t i o n sof t h ef e d e r a lg o v e r n me n ta ndi t sa g e nc i e su s i n gt h ea c c r ua lba s i sofa c c ou nt i n g . C) Bo t h( a )a nd( b )a bo v e D) Ne i t he r( a )no r( b)a bo v e Answer: B 4 5 .Wh i c hoft h ef ol l o wi n gs t e p si nt heb u dg e t a r ya u t hor i t yp r oc e s so c c ur swh e nt heOffic eof Ma n a g e me nta n dBud g e te s t a bl i s he st h eq u a r t e r l ya mo u nta v a i l a bl et oaf e de r a la g e n c yf or s p e nd i n g ? A) B) C) D)

Ap p or t i o nme nt App r o p r i a t i o n Al l o t me n t Obl i g a t i on

Answer: A

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

4 6 .Wh i c hoft h ef ol l o wi n gs t e p si nt heb u dg e t a r ya u t hor i t yp r oc e s so c c ur swh e nCo n g r e s s p a s s e sas pe n di n gb i l lwh i c hi ss i gn e db yt h ePr e s i d e n t ? A) B) C) D)

Ap p or t i o nme nt App r o p r i a t i o n Al l o t me n t Obl i g a t i on

Answer: B 4 7 .Wh i c hoft h ef ol l o wi n gs t e p si nt heb u dg e t a r ya u t hor i t yp r oc e s so c c ur swh e naf e d e r a l a g e n c yi s s u e sap ur c h a s eor d e r ? A) B) C) D)

Ap p or t i o nme nt App r o p r i a t i o n Al l o t me n t Obl i g a t i on

Answer: D 4 8 .Atwha tp oi n ti nt hebu d g e t a r ya ut h or i t ypr o c e s sma yaf e de r a la g e nc yori t ss u bu ni t s b e gi nt op l a c eor d e r sf o rg o od sa n ds e r vi c e s ? A) B) C) D)

Ap p or t i o nme nt App r o p r i a t i o n Al l o t me n t Obl i g a t i on

Answer: C 4 9 .As s umeas pe n di n gbi l lh a sbe e npa s s e db yCo n gr e s sa nds i g n e db yt hePr e s i de n t .Th e j o ur n a le n t r i e sa tt hea g e n c yl e v e lt or e c or dt hi se v e ntwi l li n c l ud e : A) B) C) D)

ad e b i tt ot hea c c o un tUne x p e nd e dAp p r op r i a t i o ns ad e b i tt ot h ea c c o u ntUn ap po r t i o ne dAu t ho r i t y ad e b i tt ot hea c c o un tFu n dBa l an c ewi t hT r e as ur y Non eo ft h ea bo v e

Answer: C

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

5 0 .Wh i c hoft h ef ol l o wi n ge v e nt swi l lr e s ul ti naj o ur n a le nt r ybe i n gr e c o r d e di nbot ht he b u dg e t a r ya n dp r op r i e t a r ya c c ou nt so faf e de r a la g e nc y ? A) Tr e a s u r yn o t i fie st hea g e nc yt h a tCo n gr e s sp a s s e dl e gi s l a t i on( s i gn e db yt h e Pr e s i d e nt )g r a nt i n gbu d g e t a r ya ut ho r i t yt of u n di t sa c t i v i t i e s . B) Th ea g e nc ypl a c e so r d e r sf org oo dso rs e r v i c e s . C) Bo t h( a )a nd( b ) D) Ne i t he r( a )no r( b) Answer: A 5 1 .Wh i c hoft h ef ol l o wi n ge v e nt swi l lr e s ul ti naj o ur n a le nt r ybe i n gr e c o r d e di nbot ht he b u dg e t a r ya n dp r op r i e t a r ya c c ou nt so faf e de r a la g e nc y ? A) OMBe s t a b l i s h e st hea mou nto ft h et ot a la pp r op r i a t i ont ha tt h ea g e nc yma ye xp e ndi n t h efir s tq u a r t e r . B) Goo dso rs e r vi c e sa r er e c e i v e da n da p pr o v e df orpa yme nt . C) Bo t h( a )a nd( b ) D) Ne i t he r( a )no r( b) Answer: B 5 2 .Wh i c hoft h ef ol l o wi n gs t e p si nt hef e d e r a lg o v e r n me nt ’ sb ud g e t a r ya u t h or i t ypr o c e s si s mo s ts i mi l a rt ot her e c o r di n go fe nc umbr a nc e sb ys t a t ea ndl oc a lg o v e r n me n t s ? A) B) C) D)

Ap p or t i o nme nt App r o p r i a t i o n Al l o t me n t Obl i g a t i on

Answer: D 5 3 .As s umet h eOMBa pp or t i on s1 / 4tho fa na p pr op r i a t i o nt oaf e d e r a la g e n c yf o rt h efir s t q ua r t e roft hefis c a ly e a r .Th ej our n a le nt r i e sa tt h ea g e nc yl e v e lt or e c o r dt hi se v e n twi l l i n c l u de : A)ad e bi tt ot hea c c o un tUne x p e nd e dAp pr op r i at i on s B)ad e bi tt ot hea c c o un tUna pp or t i on e dAu t h o r i t y C)ac r e di tt ot hea c c ou ntFun dBa l a nc ewi t hT r e as u r y D)No neoft hea b o v e Answer: B

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Cha p t e r1 4–Fi n a nc i a lRe po r t i n gb yt h eFe de r a lGo v e r nme nt

5 4 .As s umet h edi r e c t orofaf e de r a la g e nc ya l l o t sap or t i o no ft h ea g e nc y ’ sa p po r t i o nme ntt o s ub un i t swi t hi nt h ea g e nc y .Th ej our n a le nt r i e sa tt h ea g e nc yl e v e lt or e c o r dt hi se v e n twi l l i n c l u de : A) B) C) D)

ad e b i tt ot hea c c o un tAp po r t i o n me nt s ad e b i tt ot h ea c c o u ntAl l o t me n t s ac r e di tt ot hea c c ou ntOb l i g a t i on s–Un de l i v e r e dOr d e r s Non e...