Question

Select the best answer.
1. Military hardware should be accounted for as
a. Stewardship assets
b. Heritage assets
c. National defense assets
d. General assets

2. 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

3. 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

4. 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

5. A hurricane strikes the Florida coast and, as required by law, the federal government provides financial 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
c. The Treasury Department issues the checks
d. The department in charge of the program acknowledges that it is responsible for providing assistance to the hurricane victims and the amount is due and payable

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

7. 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

8. 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

9. The Government Performance and Results Act of 1993 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

10. 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 subject to voluntarily adoption by sovereign nations



$1.99
Sales0
Views128
Comments0
  • CreatedAugust 13, 2014
  • Files Included
Post your question
5000