1. Which funds are used by federal agencies to account for receipts of resources from specific sources, earmarked by law for special purposes?
a. Special Revenue Funds
b. Trust Funds
c. Revolving Funds
d. Deposit Funds
2. Who sets federal accounting standards?
b. Financial Accounting Standards Board (FASB)
c. Federal Accounting Standards Advisory Board (FASAB)
d. Governmental Accounting Standards Board (GASB)
3. What does an unliquidated obligation represent?
a. Resources that cannot be spent for any purpose
b. Resources that have already been disbursed
c. Resources that must be returned to the Treasury
d. Resources earmarked for a specific purpose
4. Who makes apportionments of appropriations?
b. Office of Management and Budget (OMB)
c. The agency
d. The department of which the agency is a part
5. What is the function of commitments?
a. To legally encumber an allotment
b. To formally disclose purchase requests before actual orders are placed
c. To represent the authority to spend money for a particular project
d. To represent legally enforceable promises to specific vendors
6. What account is used to show that an agency has requested payment by the Treasury to vendors?
a. Fund balance with Treasury
b. Accounts payable
c. Disbursements in transit
d. Processed invoices
7. To prepare the “Status of Budgetary Resources” section of the Statement of Budgetary Resources, you would use the balances in which of the following accounts?
a. Expended authority, undelivered orders, and commitments
b. Cumulative results of operations, undelivered orders, and disbursements in transit
c. Fund balance with Treasury, expended authority, and undelivered orders
d. Fund balance with Treasury, undelivered orders, and commitments
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...