1. Operating Expense: Contracted Services is an example of which type of federal government account?

Budgetary Proprietary

Account Account A) No Yes B) Yes No C) No No

D) Yes Yes

2. Which of the following is (are) accurate regarding a federal agencys Statement of Net Costs?

1. Net costs reported on the Statement of Net Costs may differ from those appearing in the Statement of Changes in Net Position, since the latter are measured on the budgetary basis.
2. The Statement of Net Costs provides greater detail about the cost of the Agencys programs, but agrees in total net cost reported on the Statement of Changes in Net Position
3. Both (a) and (b) above
4. Neither (a) nor (b) above
5. The purpose of the FASAB is to develop and issue federal accounting standards.

3. Which of the following is NOT accurate?

1. FASAB has developed a conceptual framework to guide the Board in the development of new standards. The Concept Statements are authoritative and must be followed when reporting the financial results for federal government entities.
2. The Board is considered advisory in that the standards must be approved by the three founding organizations (Treasury, OMB, and GAO).
3. The Concept Statements developed by the FASAB are not authoritative, but they identify user needs, the objectives of the financial reports, and definitions of the reporting entity and the elements of the financial statements.
4. The standards (called Statements of Federal Financial Accounting Standards) are recognized as the highest level of authoritative standard in the AICPAs Code of Professional Conduct.