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75 Cards in this Set
- Front
- Back
- 3rd side (hint)
The budget and accounting act of 1921 established the GAO (legislative) to audit financial transactions of which branch of the government? |
Executive branch |
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The GPRA requires agencies to define goals set performance targets and report what? |
Actual performance |
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Any enforceable agreement between an agency and a business concern for the acquisition of property or services is called what? |
A contract |
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What term is used to describe federal government funds that have been paid but have not yet been identified to a specific organization |
Undistributed disbursements |
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What term is used in SFFAS #4 to describe the process of accumulating, measuring, analyzing, interpreting, and reporting cost? |
Managerial cost accounting |
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What are the two self-balancing sets of accounts in the US standard general ledger (USSGL)? |
Budgetary and proprietary |
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In proprietary accounting, assets equal liabilities plus what? |
Net position |
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The aggregate amount of an entity's funds in the treasury is in what account? |
Fund balance with treasury |
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PP&E defines tangible assets with an estimated useful life of more than how many years? |
2 years |
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What is the statement of budgetary resources equation? |
Budgetary resources = status of budgetary resources |
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Which financial statement shows the components of the net cost of the reporting entities operation for the period? |
Statement of net cost |
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What DoD accounting entity maintains a central general ledger? |
DFAS |
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Which three federal agencies establish the FASAB? |
GAO Department of Treasury OMB |
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What does the US Constitution article 1, section 9, clause 7 say? |
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 |
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Are dividends included in the assets or liabilities section of the balance sheet? |
Assets |
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Is the land owned by the government considered an asset on the balance sheet? |
No because there's no intention to resell |
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Are benefits that are due and payable considered an asset or liability on the balance sheet? |
Liability |
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The US government statement of net cost with similar to what industry financial document? |
Income statement |
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What are the four main sections of the government statement of changes in net position document? |
1. Revenue 2. Net cost of government operations 3. Net operating cost/revenue 4. Net position, end of period |
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What did the 1921 Budget and Accounting Act establish? |
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 |
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Which act required agencies to pay bills when due or pay interest and to not pay in advance unless advantageous to the government? |
1982 prompt payment Act |
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What did the 1982 Federal Managers Financial Integrity Act accomplish? |
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 |
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Which act required appointment of a chief financial officer in 24 major federal agencies and required financial reports for business operations? |
1990 Chief Financial officers (CFO) Act |
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The 1993 government performance and results act (GPRA) and subsequent modernization amendment in 2010 required agencies to do what three things? |
1. Define long-term goals 2. Set performance targets 3. Report actual performance |
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Which act required the federal government to have auditable statements? |
1994 government management reform Act (GMRA) |
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What are the three main things the 1996 Federal Financial Management improvement Act FFMIA required? |
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 |
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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? |
2002 Accountability of Tax Dollars Act |
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What did the 2010 National Defense authorization Act (P.L. 111-84, Section 1003) require? |
DOD Financial statements be validated as ready for audit by 30 September 2017 |
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Which entity is responsible for codifying the generally accepted accounting principles for the federal government? |
Federal accounting standards advisory board (FASAB) |
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Which entity issue standards of accounting for non-governmental, not-for-profit entities? |
The financial accounting standards board (FASB) |
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Which entity issues (GAAP) for state and local government, not for profit entities? |
Government accounting standards board (GASB) |
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Which 3 entities set the standards for accounting in government and industry? |
1. FASB (Industry) 2. GASB (State & Local Govt) 3. FASAB (Federal Govt) |
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Which three entities are responsible for implementing federal accounting standards? |
1. OMB 2. GAO 3. Dept of Treasury |
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List what each circular provide guidance on: A-11 A-76 A-94 A-123 A-136 |
A-11: Execution & budget formulation A-76: Commerical activities A-94: Discounts & present value rates A-123: Internal controls A-136: Federal financial reporting |
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The statement of federal financial accounting concept (SFFAC) NO. 1 focuses on what? |
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 |
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The concept of SFFAC NO. 2 is implemented by which guidance document? |
OMB Circular A-136 |
This guidance prescribes the form and content of financial statements |
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Name the title and date issued for the following statements of federal financial accounting standards (SFFAS) #1, 4, 6, 48 |
#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) |
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What are the four levels in the Federal GAAP hierarchy? |
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 |
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DFAS maintains a general ledger for the federal government to do what three tasks? |
1. Account for DOD resources 2. Determined cost of operations 3. Report on DOD financial position and cost of operations |
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How many volumes are in the DOD FMR? |
16 |
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Volume 6A and 6B in the FMR are a subset of which OMB circular? |
A-136 |
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What is in volume 14 of the DOD FMR? |
Administrative control of funds and antideficiency act violations |
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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? |
General funds |
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True or false: special funds, trust funds, and trust revolving funds are earmarked for a specific purpose |
True |
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What is the difference between public Enterprise funds and intragovernmental funds? |
Public Enterprise Funds: revolving funds to conduct business primarily with the public Intragovernmental: revolving funds to conduct business with primarily government agencies |
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What are permanent appropriations? And give an example |
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 |
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True or false: A commitment is a binding intent to procure or purchase goods or services |
False, it is a non-binding intent |
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When should obligations happen ? |
When government becomes liable for material or service |
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What do each of the following accounting codes mean? 1000 2000 3000 4000 5000 6000 7000 8000 |
1000: Assets 2000: Liabilities 3000: Net position 4000: Budgetary 5000: Revenues 6000: Expenses 7000: Gains & Losses 8000: Memorandum |
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Which accounting code refers to budgetary transactions? |
4000 series |
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Accounting codes 4000-4299 and 4300-4999 referred to what categories? |
Resources 4000-4299 and Status of resources 4300-4999 |
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How do you calculate the DoD balance sheet? Include associated accounting codes in your answer |
Assets = liabilities + net position 1000 = 2000 + 3000 |
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How do you calculate the DoD statement of net cost (SNC)? Include associated accounting codes in your answer |
Expenses - exchange revenue = net cost 6000 - 5000 = net cost |
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Name the 7 transaction codes (T-codes) related to budgetary and proprietary (financial) accounting in the DOD |
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) |
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Which accounting transaction code issues credits to accounts payable? |
Transaction code T-6 |
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Which of the 7 transaction codes require both budgetary and proprietary (aka financial) entries? |
T-1 T-6 T-7 |
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In what cases is a proprietary entry required in DOD accounting? |
Only when the government has received or given up anything of tangible value (transaction codes T-1, T-6, T-7) |
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In proprietary accounting, the net cost of operations is also known as what? |
Net operating result (NOR) |
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Undistributed unmatched disbursements are a subset of which account in the general ledger? |
Assets Account (1010) |
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What are the three categories of property, plant, and equipment (PP&E) defined for accounting and reporting purposes? |
General PP&E Heritage assets Stewardship land |
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What does the acquisition value of a general PP&E asset consist of? |
1. The amount paid for the asset 2. Transportation, installation and other costs of obtaining the asset 3. Costs to prepare it for use |
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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? |
Depreciation |
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Which entity issues SFFAS direction? |
Federal accounting standards advisory board (FASAB) |
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What is the threshold depreciation of a capital asset for general property, plant, and equipment? |
$250K |
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If the DOD consolidated statement of budgetary resources is not balanced, is the budget authority or agency outlay usually a greater dollar value? |
Budget authority |
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Which statement of federal financial accounting concept (SFFAC) defines managerial cost accounting? |
SFFAC #4 (SFFAC #30 issued in 2006 required implemention with reporting effective FY2009) |
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What type of accounting is defined as the process of accumulating, measuring, analyzing, interpreting, and reporting cost? |
Managerial cost accounting |
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What are the two types of ratio analysis in regards to managerial cost accounting? |
Trend analysis and comparative analysis |
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What is the purpose of a ratio analysis for managerial cost accounting? |
Shows how "liquid" an agency is |
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What is the equation for determining a current ratio and what is the ideal DOD current ratio? |
(Cash + accounts receivable + inventory) / (current liabilities) Ideal current ratio is 2:1 (2/1) |
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The current ratio of an agency can also be referenced as what? |
An agency's "net working capital" |
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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? |
Same as Current Ratio but excluding inventory. Ideal ratio is 1:1 or greater |
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What test can be done to identify an entities immediate solvency status? |
A quick ratio (aka acid test ratio) |
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What information can a quick ratio provide greater detail of then a current ratio can? |
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) |
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Which type of DOD appropriations would a current ratio or quick ratio be applied to? |
Working Capital Funds since they conduct business type operations. (Not applicable to appropriated fund activities) |
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