Cdfm 3.3

Front 1

The budget and accounting act of 1921 established the GAO (legislative) to audit financial transactions of which branch of the government?

Back 1

Executive branch

Front 2

The GPRA requires agencies to define goals set performance targets and report what?

Back 2

Actual performance

Front 3

Any enforceable agreement between an agency and a business concern for the acquisition of property or services is called what?

Back 3

A contract

Front 4

What term is used to describe federal government funds that have been paid but have not yet been identified to a specific organization

Back 4

Undistributed disbursements

Front 5

What term is used in SFFAS #4 to describe the process of accumulating, measuring, analyzing, interpreting, and reporting cost?

Back 5

Managerial cost accounting

Front 6

What are the two self-balancing sets of accounts in the US standard general ledger (USSGL)?

Back 6

Budgetary and proprietary

Front 7

In proprietary accounting, assets equal liabilities plus what?

Back 7

Net position

Front 8

The aggregate amount of an entity's funds in the treasury is in what account?

Back 8

Fund balance with treasury

Front 9

PP&E defines tangible assets with an estimated useful life of more than how many years?

Back 9

2 years

Front 10

What is the statement of budgetary resources equation?

Back 10

Budgetary resources = status of budgetary resources

Front 11

Which financial statement shows the components of the net cost of the reporting entities operation for the period?

Back 11

Statement of net cost

Front 12

What DoD accounting entity maintains a central general ledger?

Back 12

DFAS

Front 13

Which three federal agencies establish the FASAB?

Back 13

GAO

Department of Treasury

OMB

Front 14

What does the US Constitution article 1, section 9, clause 7 say?

Back 14

No money can be taken from the treasury unless an appropriations law is enacted and requires a statement and account of receipts and expenditures for all public money be published

Front 15

Are dividends included in the assets or liabilities section of the balance sheet?

Back 15

Assets

Front 16

Is the land owned by the government considered an asset on the balance sheet?

Back 16

No because there's no intention to resell

Front 17

Are benefits that are due and payable considered an asset or liability on the balance sheet?

Back 17

Liability

Front 18

The US government statement of net cost with similar to what industry financial document?

Back 18

Income statement

Front 19

What are the four main sections of the government statement of changes in net position document?

Back 19

1. Revenue

2. Net cost of government operations

3. Net operating cost/revenue

4. Net position, end of period

Front 20

What did the 1921 Budget and Accounting Act establish?

Back 20

1. GAO

2. Bureau of the Budget (now OMB)

3. Gave GAO authority to approve Federal Financial Systems

4. GAO to establish GAAP for Federal Government

Front 21

Which act required agencies to pay bills when due or pay interest and to not pay in advance unless advantageous to the government?

Back 21

1982 prompt payment Act

Front 22

What did the 1982 Federal Managers Financial Integrity Act accomplish?

Back 22

Required agencies to set up an internal control program and financial systems that:

1. Operate efficiently

2. Comply with applicable laws

3. Reliable financial reporting

Front 23

Which act required appointment of a chief financial officer in 24 major federal agencies and required financial reports for business operations?

Back 23

1990 Chief Financial officers (CFO) Act

Front 24

The 1993 government performance and results act (GPRA) and subsequent modernization amendment in 2010 required agencies to do what three things?

Back 24

1. Define long-term goals

2. Set performance targets

3. Report actual performance

Front 25

Which act required the federal government to have auditable statements?

Back 25

1994 government management reform Act (GMRA)

Front 26

What are the three main things the 1996 Federal Financial Management improvement Act FFMIA required?

Back 26

1. Systems to support the control of cost

2. Apply accounting standards to produce consistent financial reporting

3. Financial management systems to support cost reporting and full disclosure of financial data

Front 27

Which Act requires executive agencies that are not otherwise required to submit annual audited financial statements (excluding Government corporations) to submit such statements to Congress and OMB?

Back 27

2002 Accountability of Tax Dollars Act

Front 28

What did the 2010 National Defense authorization Act (P.L. 111-84, Section 1003) require?

Back 28

DOD Financial statements be validated as ready for audit by 30 September 2017

Front 29

Which entity is responsible for codifying the generally accepted accounting principles for the federal government?

Back 29

Federal accounting standards advisory board (FASAB)

Front 30

Which entity issue standards of accounting for non-governmental, not-for-profit entities?

Back 30

The financial accounting standards board (FASB)

Front 31

Which entity issues (GAAP) for state and local government, not for profit entities?

Back 31

Government accounting standards board (GASB)

Front 32

Which 3 entities set the standards for accounting in government and industry?

Back 32

1. FASB (Industry)

2. GASB (State & Local Govt)

3. FASAB (Federal Govt)

Front 33

Which three entities are responsible for implementing federal accounting standards?

Back 33

1. OMB

2. GAO

3. Dept of Treasury

Front 34

List what each circular provide guidance on:

A-11

A-76

A-94

A-123

A-136

Back 34

A-11: Execution & budget formulation

A-76: Commerical activities

A-94: Discounts & present value rates

A-123: Internal controls

A-136: Federal financial reporting

Front 35

The statement of federal financial accounting concept (SFFAC) NO. 1 focuses on what?

Back 35

The concept of stewardship; financial reporting that assists in keeping the government publicly accountable of money raised through taxes, and other means, in accordance with financial laws and regulations

Front 36

The concept of SFFAC NO. 2 is implemented by which guidance document?

Back 36

OMB Circular A-136

Hint 36

This guidance prescribes the form and content of financial statements

Front 37

Name the title and date issued for the following statements of federal financial accounting standards (SFFAS) #1, 4, 6, 48

Back 37

#1 Accounting for selected assets and liabilities (Mar 93)

#4 Managerial cost accounting standards and concepts (Jul 95)

#6 Accounting for property, plant and equipment (PP&E) (Nov 95)

#48 Opening balances for inventory, OM&S and stockpile materials (Jan 16)

Front 38

What are the four levels in the Federal GAAP hierarchy?

Back 38

1. FASAB standards and interpretations

2. FASAB technical bulletins

3. FASAB technical releases of the accounting and auditing policy (committee)

4. Implemention guides by the FASAB staff

Front 39

DFAS maintains a general ledger for the federal government to do what three tasks?

Back 39

1. Account for DOD resources

2. Determined cost of operations

3. Report on DOD financial position and cost of operations

Front 40

How many volumes are in the DOD FMR?

Back 40

16

Front 41

Volume 6A and 6B in the FMR are a subset of which OMB circular?

Back 41

A-136

Front 42

What is in volume 14 of the DOD FMR?

Back 42

Administrative control of funds and antideficiency act violations

Front 43

In regards to the federal budget, what type of funds make up the greater part of the budget and record receipts not earmarked by law for a specific purpose?

Back 43

General funds

Front 44

True or false: special funds, trust funds, and trust revolving funds are earmarked for a specific purpose

Back 44

True

Front 45

What is the difference between public Enterprise funds and intragovernmental funds?

Back 45

Public Enterprise Funds: revolving funds to conduct business primarily with the public

Intragovernmental: revolving funds to conduct business with primarily government agencies

Front 46

What are permanent appropriations? And give an example

Back 46

Funds covered by basic laws that allow the secretary of treasury to pay without further enactment by Congress. Ex) Federal retirement, social security, and the judgement fund

Front 47

True or false: A commitment is a binding intent to procure or purchase goods or services

Back 47

False, it is a non-binding intent

Front 48

When should obligations happen ?

Back 48

When government becomes liable for material or service

Front 49

What do each of the following accounting codes mean?

1000

2000

3000

4000

5000

6000

7000

8000

Back 49

1000: Assets

2000: Liabilities

3000: Net position

4000: Budgetary

5000: Revenues

6000: Expenses

7000: Gains & Losses

8000: Memorandum

Front 50

Which accounting code refers to budgetary transactions?

Back 50

4000 series

Front 51

Accounting codes 4000-4299 and 4300-4999 referred to what categories?

Back 51

Resources 4000-4299 and

Status of resources 4300-4999

Front 52

How do you calculate the DoD balance sheet? Include associated accounting codes in your answer

Back 52

Assets = liabilities + net position

1000 = 2000 + 3000

Front 53

How do you calculate the DoD statement of net cost (SNC)? Include associated accounting codes in your answer

Back 53

Expenses - exchange revenue = net cost

6000 - 5000 = net cost

Front 54

Name the 7 transaction codes (T-codes) related to budgetary and proprietary (financial) accounting in the DOD

Back 54

T-1: Appropriation

T-2: OMB apportionment

T-3: allotment

T-4: commitment of funds

T-5: obligation of funds

T-6: receipt of materials

T-7: invoice payment (outlay)

Front 55

Which accounting transaction code issues credits to accounts payable?

Back 55

Transaction code T-6

Front 56

Which of the 7 transaction codes require both budgetary and proprietary (aka financial) entries?

Back 56

T-1

T-6

T-7

Front 57

In what cases is a proprietary entry required in DOD accounting?

Back 57

Only when the government has received or given up anything of tangible value (transaction codes T-1, T-6, T-7)

Front 58

In proprietary accounting, the net cost of operations is also known as what?

Back 58

Net operating result (NOR)

Front 59

Undistributed unmatched disbursements are a subset of which account in the general ledger?

Back 59

Assets Account (1010)

Front 60

What are the three categories of property, plant, and equipment (PP&E) defined for accounting and reporting purposes?

Back 60

General PP&E

Heritage assets

Stewardship land

Front 61

What does the acquisition value of a general PP&E asset consist of?

Back 61

1. The amount paid for the asset

2. Transportation, installation and other costs of obtaining the asset

3. Costs to prepare it for use

Front 62

The rational allocation of the full acquisition value of a general PP&E asset over its expected useful life (recovery period) Is known as what?

Back 62

Depreciation

Front 63

Which entity issues SFFAS direction?

Back 63

Federal accounting standards advisory board (FASAB)

Front 64

What is the threshold depreciation of a capital asset for general property, plant, and equipment?

Back 64

$250K

Front 65

If the DOD consolidated statement of budgetary resources is not balanced, is the budget authority or agency outlay usually a greater dollar value?

Back 65

Budget authority

Front 66

Which statement of federal financial accounting concept (SFFAC) defines managerial cost accounting?

Back 66

SFFAC #4

(SFFAC #30 issued in 2006 required implemention with reporting effective FY2009)

Front 67

What type of accounting is defined as the process of accumulating, measuring, analyzing, interpreting, and reporting cost?

Back 67

Managerial cost accounting

Front 68

What are the two types of ratio analysis in regards to managerial cost accounting?

Back 68

Trend analysis and comparative analysis

Front 69

What is the purpose of a ratio analysis for managerial cost accounting?

Back 69

Shows how "liquid" an agency is

Front 70

What is the equation for determining a current ratio and what is the ideal DOD current ratio?

Back 70

(Cash + accounts receivable + inventory) / (current liabilities)

Ideal current ratio is 2:1 (2/1)

Front 71

The current ratio of an agency can also be referenced as what?

Back 71

An agency's "net working capital"

Front 72

What is the equation to determine a quick ratio for an agency's managerial cost accounting? What is the ideal value for a quick ratio?

Back 72

Same as Current Ratio but excluding inventory. Ideal ratio is 1:1 or greater

Front 73

What test can be done to identify an entities immediate solvency status?

Back 73

A quick ratio (aka acid test ratio)

Front 74

What information can a quick ratio provide greater detail of then a current ratio can?

Back 74

The immediate solvency of an entity. (For example a strong current ratio may be due to large inventory. This level of liquidity is revealed by the quick ratio)

Front 75

Which type of DOD appropriations would a current ratio or quick ratio be applied to?

Back 75

Working Capital Funds since they conduct business type operations. (Not applicable to appropriated fund activities)