Choose the best answer.
1. Which of the following represents one of the roles of the Government Accountability Office in federal financial accounting and reporting?
a. Providing an independent assessment of the financial reports of the federal government.
b. Providing the chart of accounts for the standard general ledger used by federal agencies.
c. Providing forward-looking financial information, such as estimated future revenues.
d. Providing information to federal agencies on financial reporting requirements.
2. Which of the following is an important aid in assisting federal agencies in preparing their performance and accountability reports?
a. Statement of Federal Financial Accounting Concepts No. 1.
b. Statement of Federal Financial Accounting Concepts No. 6.
c. OMB Circular A-134.
d. OMB Circular A-136.
3. Which of the following is the highest level of GAAP for the federal government?
a. The FASAB’s technical bulletins.
b. The FASAB’s concepts statements.
c. The FASAB’s interpretations.
d. The FASB standards if adopted by FASAB.
4. Objectives that are identified by Statement of Federal Financial Accounting Concepts (SFFAC) No. 1 for federal financial reporting include all of the following except
a. Budgetary integrity.
b. Adequacy of controls.
c. Stewardship.
d. Relevance and reliability of information.
5. Which of the following is a required basic financial statement for federal agencies?
a. Balance sheet.
b. Statement of cash flows.
c. Statement of operations.
d. Statement of budgetary revenues and expenditures.
6. Assuming that an agency’s unused appropriations expire at year-end but appropriations continue in effect for obligated amounts (purchase orders, etc.), which of the following budgetary accounts would likely be found in the agency’s post closing trial balance at year-end?
a. Commitments and Other Appropriations Realized.
b. Undelivered Orders and Other Appropriations Realized.
c. Expended Authority and Undelivered Orders.
d. Commitments and Undelivered Orders.
7. Which of the following is a correct mathematical relationship among proprietary account balances?
a. Net Position equals Total Assets minus Total Liabilities.
b. Fund Balance with Treasury equals Un-expended Appropriations.

c. Cumulative Results of Operations equals Revenues and Financing Sources minus Operating/Program Expenses.
d. Disbursements in Transit equals Fund Balance with Treasury minus Accounts Payable and Other Current Liabilities.
8. Which of the following is not a component of a consolidated performance and accountability report (PAR)?
a. MD&A.
b. The basic financial statements.
c. Statistical information section.
d. A transmittal letter from the agency head.
9. Fund Balance with the Treasury would be considered equivalent to which of the following accounts?
a. Cash.
b. Other Appropriations Realized.
c. Allotments.
d. Both a and b.
10. Which of the following is not a true statement about the difference between accounting and reporting for federal government agencies versus state and local governments?
a. State and local governments record material amounts of inventory at the fund and government-wide level, as does the federal government at the budgetary and proprietary levels.
b. State and local governments use accrual accounting in the government wide statements as well as proprietary and fiduciary funds; federal agencies use only the cash basis of accounting.
c. The budget is recorded in the general ledger of a state or local government and a federal agency.
d. State and local governments do not account for apportionment's and most do not account for allotments.
11. Which of the following federal funds is most similar to a custodial fund used by state and local governments?
a. Trust fund.
b. Special fund.
c. Deposit fund.
d. General fund.