CHPT 17 GNP

The Executive Office Building has historical significance, yet is also used as functioning office space. The cost of the building should be a. Depreciated, like that of other general assets b. Not accorded balance sheet recognition c. Allocated between general assets and heritage assets d. Reported on the balance sheet but not depreciated

a. Depreciated, like that of other general assets

The Government Performance and Results Act of 1993 (and updated in 2010) mandates that a. Each federal agency submit a performance plan to OMB b. All federal funds recipients be subject to an annual performance audit c. Each federal agency be subject to an annual performance audit d. Each federal agency prepare its budget using zero‐base budgeting or a comparable form of performance budgeting

a. Each federal agency submit a performance plan to OMB

Which of the following is an example of an "exchange" revenue? a. Proceeds from the sale of goods or services b. Transfers from another agency c. An increase in an OMB allotment d. Collections of taxes on liquor sales

a. Proceeds from the sale of goods or services

In the federal government, "proprietary accounts" are those that a. Provide the data required to prepare accrual‐basis financial statements b. Provide the data required to prepare budget‐basis financial statements c. Are used to account for business‐type activities d. Are used to account for classified information that cannot be made public for security reasons

a. Provide the data required to prepare accrual‐basis financial statements

The federal government's annual financial statements are issued by a. The Department of the Treasury b. The Office of Management and Budget c. The Department of Commerce d. The Government Accountability Office

a. The Department of the Treasury

The federal government should recognize revenue from income taxes a. As taxpayers earn their income b. As taxpayers report on their tax returns the amount of their tax or make periodic cash payments c. As soon as it is able to make a reasonable estimate of the amount that it will collect d. On the date the taxes are due

b. As taxpayers report on their tax returns the amount of their tax or make periodic cash payments

The federal government should recognize the expenses associated with a subsidized loan program a. In the period in which it establishes the program b. In the periods that it makes the loans c. In the periods in which the loan recipients disburse the funds that they borrow d. Over the periods the loans are outstanding

b. In the periods that it makes the loans

The cost of constructing and renovating the Washington Monument should be a. Reported on the balance sheet and depreciated b. Not accorded balance sheet recognition c. Reported on the balance sheet at a symbolic amount (e.g., $1) d. Reported on the balance sheet but not depreciated

b. Not accorded balance sheet recognition

In a particular year Congress establishes a program that entitles all senior citizens to reimbursements for eye examinations. a. The estimated actuarial cost of the program for a period of 75 years should be reported as a liability and corresponding expenditure in the year Congress authorized the program b. The cost of the program should be reported as a liability and corresponding expense as the payments are due to the senior citizens c. The cost of the program should be reported as an expense as the payments are made to the senior citizens d. The cost of the program should be reported as a liability and corresponding expense as the OMB issues an allotment authorizing the agency to make the required disbursements

b. The cost of the program should be reported as a liability and corresponding expense as the payments are due to the senior citizens

A hurricane strikes the Florida coast, and as required by law, the federal government provides finan- cial assistance to parties who suffer property losses. The federal government should recognize the assistance payments as expenditures in the period in which a. The hurricane occurred b. The department in charge of the program authorizes the payments and the amount is due and payable c. The Treasury Department issues the checks d. The department in charge of the program acknowledges that it is responsible for providing assistance to hurricane victims

b. The department in charge of the program authorizes the payments and the amount is due and payable

The Government Accountability Office is part of which of the following branches of government? a. The executive branch b. The legislative branch c. The judicial branch d. None of the above; it is an independent agency

b. The legislative branch

Which of the following is not a required element of federal government‐wide statements? a. Management's discussion and analysis b. Descriptions of stewardship assets c. A schedule comparing actual to anticipated nonmonetary performance measures d. A statement that shows, by major department or agency, the net cost of operations

c. A schedule comparing actual to anticipated nonmonetary performance measures

Per the FASAB a federal entity should be considered a reporting entity and thereby must issue annual reports if it a. Is listed in the OMB's Catalog of Federal Agencies b. Has been designated as a reporting entity by Congress c. Is controlled by the federal government with risk of loss or expectation of benefits d. Meets OMB minimum revenue requirements

c. Is controlled by the federal government with risk of loss or expectation of benefits

The actuarial liability for Social Security that the federal government discloses in its financial state- ments is based on a projection of a. One year b. Ten years c. Seventy‐five years d. A perpetuity

c. Seventy‐five years

Which of the following statements would report net cost of operations, appropriations, transfers, and revenues? a. Statement of net cost b. Statement of financing c. Statement of changes in financial position d. Statement of budgetary resources

c. Statement of changes in financial position

Military hardware should be accounted for as a. Stewardship assets b. Heritage assets c. National defense assets d. General assets

d. General assets

The "official" unified budget includes a. Both Social Security and U.S. Postal Service accounts b. Social Security accounts but not U.S. Postal Service accounts c. U.S. Postal Service accounts but not Social Security accounts d. Neither Social Security nor U.S. Postal Service accounts

d. Neither Social Security nor U.S. Postal Service accounts

The accounting standards established by the International Public Sector Accounting Standards Board (IPSASB) a. Must be adhered to by all national governments the debt of which is traded in international markets b. Must be adhered to by all national governments that are signatories to the United Nations International Commerce Treaty c. Must be adhered to by members of the European Economic Community d. Represent recommended "best practices" and are for guidance only

d. Represent recommended "best practices" and are for guidance only

The Chief Financial Officer of the United States reports directly to a. The Comptroller General b. The President c. The Majority Leader d. The head of the OMB

d. The head of the OMB

In the period in which it guarantees a loan, the federal government should recognize a liability in the amount of a. Zero, assuming that there are no defaults in that period b. The total amount of the loans that it guarantees c. The amount that it expects to pay owing to borrower defaults d. The present value of the amount that it expects to pay owing to borrower defaults

d. The present value of the amount that it expects to pay owing to borrower defaults