Chapter Nineteen Test Bank Multiple Choice Questions

1. Federal budgetary authority has been exceeded in the following situations except
a. when a commitment has occurred within an agency.
b. an apportionment exceeds an appropriation.
c. an obligation exceeds an allotment.
d. an expended appropriation exceeds an apportionment.
e. All of the above are indicative of federal budgetary authority having been
exceeded.
2. Unexpended, unobligated appropriation authority from a previous year is representative
of
a. a commitment.
b. an apportionment.
c. expired authority.
d. a suballotment.
e. None of the above.
. !he following are representative of the basic year"end financial statements re#uired by an
agency except
a. $tatement of Net %ost
b. &alance $heet
c. $tatement of Financing
d. Statement of Inesting
e. $tatement of %ustodial Activity
f. All of the above are re#uired basic year"end agency financial statements.
'. !he budgetary fund balance of an agency is also (nown as
a. unreserved fund balance.
b. undesignated fund balance.
c. unexpended appropriations.
d. obligated appropriations.
e. allocations.
). An appropriation was made for a federal agency in the amount of *1,+++,+++. !he
agency,s unexpended appropriations component of net position
a. does not change.
!. increases !y "#$%%%$%%%.
c. decreases by *1,+++,+++.
d. will either increase or decrease, depending on the nature of the appropriation.
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3. Assume that %ongress enacted an appropriation for a federal agency in the amount of
*)++,+++. !he proprietary entry that would be necessary would be
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a. &und Balance with Treasury "'%%$%%%
(nexpended )ppropriations "'%%$%%%
b. %ash *)++,+++
Appropriations *)++,+++
c. Appropriation 4eali5ed *)++,+++
Unapportioned Authority *)++,+++
d. %ash *)++,.+++
6bligations *)++,+++
e. No entry is re#uired.
7. An agency ma(es an internal preliminary re#uest for the purchase of *7),+++ of
e#uipment and supplies with an anticipated cost of *1+,+++. !he budgetary entry made
by the agency would be
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a. 0xpenditures * 1+,+++
%apital Assets 7),+++
Appropriations *8),+++
!. )llotments * +eali,ed +esources "-'$%%%
Commitments "-'$%%%
c. Appropriations *8),+++
%ommitments *8),+++
d. Appropriations *8),+++
Allotments *8),+++
8. 1f an agency incurs expenses that were not previously obligated, the agency should ma(e
a proprietary entry that 90&1!$
a. fund balance.
b. allotments.
c. advances to others.
d. appropriations used.
e. unexpended appropriations.
.. A budgetary entry for depreciation on an agency,s e#uipment would
a. include a 90&1! to expenses.
b. include a %4091! to accumulated depreciation.
c. include a 90&1! appropriations.
d. both items a and b.
e. not !e necessary.
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1+. :hat is the primary financing source reported by must federal agencies;
a. $ales revenues
!. )ppropriations used
c. Appropriations received from %ongress
d. Apportionments
11. 1n a federal agency<s budgetary accounts, which account is most similar to encumbrances
in a state or local government;
a. Allotments
!. %ommitments
c. (ndeliered orders..unpaid
d. Appropriated capital
12. :hich of the following are not components of the net position of the U.$. =overnment;
a. %umulative results of operations
b. Unexpended appropriations
c. Capital Contri!uted !y Treasury
d. All three are components of the net position of the U.$. =overnment
1. :hich transactions of a federal agency re#uire both budgetary and proprietary entries;
a. +eceipt of !udgetary authority from the Congress$ i.e.$ receipt of
appropriation.
b. %onsumption of materials and supplies.
c. 9epreciation of capital assets
d. $igning a contract to buy services
1'. :hen agency directors ma(e allotments, what budgetary accounts are affected;
a. Unapportioned Authority and Allotments""4eali5ed 4esources
b. Allotments""4eali5ed 4esources and Undelivered 6rders
c. )ppropriations and )llotments..+eali,ed +esources
d. Allotments""4eali5ed 4esources and 0xpended Appropriations
1). :hen materials or supplies that have been ordered are received, what budgetary account
is credited;
a. Undelivered orders
!. Appropriations
c. /xpended appropriations..unpaid
d. Appropriations used
13. :hen e#uipment is purchased on account, what proprietary accounts are credited;
a. Accounts /ayable and Unexpended Appropriations
b. %ash and Unexpended Appropriations
c. )ccounts 0aya!le and )ppropriations (sed
d. Accounts /ayable and 0xpended Appropriations
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17. :hich of the following budgetary accounts typically is not closed at year end;
a. Unapportioned Authority
b. 0xpended Appropriations""/aid
c. /xpired )uthority
d. %ommitments
18. :ho has responsibility to develop and recommend accounting and financial reporting
principles for the federal government;
a. &ederal )ccounting Standards )disory Board
b. Financial Accounting $tandards &oard
c. =overnmental Accounting $tandards &oard
d. $ecurities and 0xchange %ommission
1.. :hich of the following does not change cumulative results of operations of a federal
agency;
a. Appropriations used
b. =ains on sales of agency assets
c. 0xpenses
d. 0urchase of capital assets
2+. :hich transaction of a federal agency re#uires a budgetary entry but not a proprietary
entry;
a. 4eceipt of budgetary authority from the %ongress, i.e., receipt of appropriation.
b. %onsumption of materials and supplies.
c. 9epreciation of fixed assets
d. )pproal and placement of purchase order
21. :hich transaction of a federal agency re#uires a proprietary entry, but not a budgetary
entry;
a. 4eceipt of capital assets or material ordered.
!. Consumption of materials and supplies.
c. Accrued salaries and benefits
d. Approval and placement of purchase order
22. :hich transaction of a federal agency does not re#uire both budgetary and proprietary
entries;
a. 4eceipt of budgetary authority from the %ongress, i.e., receipt of appropriation.
!. 0ayment of lia!ilities.
c. Accrued salaries and benefits.
d. 4eceipt of fixed assets or material ordered
2. :hen e#uipment is purchased on account, what proprietary accounts are debited;
a. /1uipment and (nexpended )ppropriations
b. %apital 0xpenses and Unexpended Appropriations
c. 0#uipment and Appropriations Used
d. 0#uipment and 0xpended Appropriations
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2'. %umulative results of operations is comprised of>
a. unexpended appropriations and earmar(ed funds.
b. earmarked and non.earmarked funds.
c. expended appropriations and unexpended appropriations.
d. &oth b and c.
e. None of the above.
2). !he net position of the U.$. government is>
a. the net assets of the federal government.
b. e#ual to the difference between the assets and liabilities of the federal
government.
c. comprised of cumulative results of operations and unexpended appropriations.
d. )ll of the a!oe.
e. 6nly b and c.
23. :hich of the following basic year"end financial statements are federal agencies re#uired
to prepare;
a. $tatement of net cost.
b. $tatement of activities.
c. $tatement of changes in net position.
d. All of the above.
e. Both a and c.
f. &oth b and c.
27. :hich of the following budgetary accounts typically have a debit balance;
a. Apportionments
b. 0xpended appropriations?paid
c. 0xpended Appropriations?unpaid
d. )ppropriations reali,ed
e. 0xpired authority
28. :hich of the following funds would you not expect to find in federal government
accounting;
a. =eneral fund.
b. $pecial funds.
c. 4evolving funds.
d. Capital pro2ects funds.
2.. :hich of the following @ournal entries would you expect to see for a federal agency;
a. 9ebit to unapportioned authority and credit to commitments
b. 9ebit to unapportioned authority and credit to allotments?reali5ed resources
c. 3e!it to unapportioned authority and credit to apportionments
d. 9ebit to unapportioned authority and credit to expended appropriations?unpaid
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+. :hich of the following @ournal entries would you expect to see for a federal agency;
a. 9ebit to commitments and credit to unappropriated authority.
!. 9ebit to commitments and credit to allotments?reali5ed resources
c. 3e!it to commitments and credit to undeliered orders4unpaid
d. 9ebit to commitments and credit to expended appropriations?unpaid
1. /reviously purchased materials costing *)+,+++ were used by a federal agency. !he
proprietary entry to record this transaction would be>
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a. 5perating60rogram /xpenses4Materials "'%$%%%
Inentory for )gency 5perations "'%$%%%
b. 6peratingA/rogram 0xpenses?Baterials *)+,+++
Appropriations Used *)+,+++
c. Appropriation 4eali5ed *)+,+++
1nventory for Agency 6perations *)+,+++
d. 1nventory for Agency 6perations *)+,.+++
Accounts /ayable *)+,+++
e. None of the above.
2. :hich of the following proprietary accounts of a federal agency would be closed at year"
end;
a. Appropriations reali5ed.
b. Apportionments.
c. )ppropriations used.
d. Unexpended appropriations.
. :hich of the following would not be included as part of the consolidated financial
statements of the federal government;
a. &alance sheet
!. Statement of custodial actiity
c. $tatement of net cost
d. $tatement of social insurance
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