Module 3 Competency 3: Accounting Flashcards
Which act required audited financial statements for the business activities of 24 designated CFO agencies?
Chief Financial Officers (CFO) Act
Which act amended the CFO act to require audited financial statements for the 24 CFO agencies and an audited Financial Report of the United States Government commencing with FY1997?
The Government Management Reform Act of 1994
Which act required the direct deposit of federal wages, salary, and retirement payments?
The Government Management Reform Act of 1994
As amended in the GMRA act of 1994, who prepares the consolidated financial statements for the executive branch?
The Treasury
As amended in the GMRA act of 1994, who audits the consolidated financial statements for the executive branch?
The GAO
In which year shall audited financial statements as dictated in the GMRA act of 1994 commence?
FY 1997
Who conducts continuous programs for improving accounting and financial reporting?
OMB
Who audit the financial performance of the executive branch and is referred to as “watchdog” of congress?
GAO
Who manages balances and flow of funds required to support the Government formulates and recommends economic, tax, and fiscal policies?
Department of Treasury
Who published the USSGL for the government?
Department of Treasury
What was established in 1990 by Comptroller General, Secretary of Treasury, and director of OMB, and is responsible for codifying GAAP for Federal Government?
Federal Accounting Standards Advisory Board (FASAB)
Who issues standards of accounting, referred to as Generally Accepted Accounting Principles (GAAPs) for non-governmental, not-for-profit entities?
Financial Accounting Standards Board (FASB)
Who issues Generally Accepted Accounting Principles for state and local governmental, not-for-profit entities?
Government Accounting Standards Board (GASB)
Who was recognized as the body designated to establish GAAP for the Federal Government in October 1999 by the American Institute of Certified Public Accountants (AICPA) governing council?
Federal Accounting Standards Advisory Board (FASAB)
Who are the three agencies responsible for implementing Federal Accounting Standards?
1) OMB
2) GAO
3) Department of Treasury
What is OMB’s role in implementing Federal Accounting Standards?
Publishing and Updating OMB Circular A-136
What is GAO’s role in implementing Federal Accounting Standards?
Formulates the Generally Accepted Government Auditing Standards (GAGAS)
What is the Department of Treasury’s role in implementing Federal Accounting Standards?
Publishing and Updating the USSGL and make changes to the financial statement crosswalks that may be required in changes to OMB Circular A-136
What focuses on the uses, user needs, and objectives of Federal Financial Reporting?
SFFAC No. 1
What are the SFFAS objectives?
1) Budgetary Integrity
2) Operating Performance
3) Systems and Controls
4) Concept of Stewardship
“Federal financial reporting should assist in fulfilling the government’s duty to be publicly accountable for monies raised through taxes and other means and for their expenditure in accordance with appropriation laws that establish the government’s budget for a particular FY and related laws and regulations” is found in which Accounting Standard?
SFFAC No. 1
In the Statements of Federal Financial Accounting Standards which Standard is found in Statement #4 and when was it issued?
Managerial Cost Accounting Standards and Concepts; July 1995
What is the Federal GAAP Hierarchy?
1) FASAB Statements and Interpretations
2) FASAB Technical Bulletins
3) AICPA Accounting Standards Executive Committees Practice Bulletins
4) Implementation guides published by FASAB Staff
5) Standards and guides published by other authoritative standard setting bodies
Who is the principle advisor to the SECDEF and DEPSECDEF and the CFO of the DoD?
Under Secretary of Defense (Comptroller) (USD(C)
______ represent the DoD on the Chief Financial Officers council and is a part of the office _______
Deputy CFO; USD(C)
What are the responsibilities of USD(C)?
1) Formulated DoD-wide financial management policies
2) Directs DFAS
3) Directs Defense Contract Audit Agency (DCAA)
Who is the accounting entity for DoD and maintains a central general ledger?
DFAS
Which type of funds are the greater part of the budget and record receipts NOT EARMARKED BY LAW FOR A SPECIFIC PURPOSE?
General Funds
What type of funds are receipt accounts for Federal Fund receipts that laws have earmarked for specific purposes and associated APPN accounts for expenditures of the earmarked receipts?
Special Funds
What type of funds are revolving funds used for programs authorized by law to conduct a cycle of business-type operations primarily with the public in which outlays general collects?
Public Enterprise Funds
What type of funds are revolving funds that conduct business type operations primarily within and between government agencies?
Intragovernmental Funds
The budget records the collections and outlays of revolving funds in what?
The Same Account
What type of funds account for the receipt and expenditure of monies by the government for carrying out specific purposes and programs in accordance with the terms of a statue that designates the funds as a trust fund (such as a highway trust fund) or carrying out stipulations of a trust agreement where the nation is a beneficiary?
Trust Funds
What type of funds are provided by congress to fund an agency’s budget request? These funds have a limited life for obligations and expenditures.
Appropriation Funds
What type of funds are funds in addition to APPN funds, provided by customers for work performed in addition to normal mission work?
Reimbursable Funds
In order to accept reimbursable funds, an agency must have what in its budget request?
Reimbursable Work
What type of funds work like a for-profit business and sell products and services to customers at a price that covers the cost incurred? They are initially established with funds appropriated by congress, however they normally receive no additional funding from congress.
Revolving Funds
Military Retirement Fund and Foreign Military Sales are known as what type of funds?
Trust Funds
What type of funds are not appropriated by congress and come from a sale of a good or service?
Non-Appropriated Funds
What type of funds are used to support morale, welfare, recreation, and certain other functions such as religious and educational program?
Non-Appropriated Funds
Non-appropriated funds are _______ from funds that are recorded in the books of the treasury.
Separate
Amounts of orders placed, contracts awarded, services rendered and other transactions during a given period that would require payments during the same or future period are known as what?
Obligations
What are the two types of obligating documents?
1) Contracts
2) MIPR
What are the two types of MIPRs?
1) Project Order
2) Economy Act Order
Interest on Debt, Federal Retirement, Social Security, and Judgement Fund are known as what type of appropriations?
Permanent (Indefinite) Appropriations
When a judgement is made in which year monies do you pay the judgement amount with?
The year the judgement was made
What is an enforceable agreement between the Government and commercial vendor (supplier) to provide specific goods and/or services to the Federal Government?
Contract
When contracting with a vendor when does the obligation occur?
When the contract has been accepted and signed by the government
Purchase requests for requesting work or services from another government entity are known as what?
MIPRs
When should an obligation occur when performing a MIPR?
When performing activity accepts the order
What type of MIPR order can cross FYs?
Project Order
What type of MIPR orders are used for routine work or services of recurring nature usually within one FY?
Economy Act Order
Economy Act orders are usually made with what type of appropriation authority?
Annual
True or False:
An entity may take funds set to expire and apply it to a project order that will have work performed in future FY?
False
Issuance of checks, disbursements of cash, or electronic transfer to liquidate an obligation is known as what?
Outlays
What are the three separate by interrelated accounting systems?
1) Budgetary
2) Proprietary
3) Managerial
________ and _______ sets of GL accounts are independently self-balancing
Proprietary and Budgetary
What type of GL accounts are known as resource accounts and typically debit accounts?
4000-4299
What type of GL accounts are known as supplemental resource accounts and typically credit accounts?
4300-4999
4119 is what account?
Other APPN Realized
4201 is what account?
Total Actual Resources Collected
4450 is what account?
Unapportioned
4510 is what account?
Apportioned
4610 is what account?
Allotments
4700 is what account?
Committments
4801 is what account?
Undelivered Order, unpaid
4901 is what account?
Delivered order, unpaid
4902 is what account?
Delivered order, paid
4650 is what account?
Expired Authority
4350 is what account?
Canceled Authority
1000 series accounts are what type of account and have a normal balance of what?
Assets; Debit
2000 series accounts are what type of account and have a normal balance of what?
Liabilities; Credit
3000 series accounts are what type of account and have a normal balance of what?
Net Position; Credit
4000 series accounts are what type of account and have a normal balance of what?
Budgetary; Both
5000 series accounts are what type of account and have a normal balance of what?
Revenues and Financing Sources; Credit
6000 series accounts are what type of account and have a normal balance of what?
Expenses; Debit
7000 series accounts are what type of account and have a normal balance of what?
Gains and Losses; Both
8000 series accounts are what type of account and have a normal balance of what?
Memorandum; N/A
______ = Liabilities + Net Position
Assets
Expenses - ______ = Net Cost of Ops
Exchange Revenue
If an account has a 9 at the end it is considered what?
Contra Account
What are the Selected Asset Accounts?
1) FBwT
2) Undistributed
3) Imprest Fund
4) A/R
5) Advances
What type of asset accounts are paid but not yet identified to a specific organization?
Undistributed Disbursement
What type of asset account would you find a petty cash fund?
Imprest Fund
What type of asset accounts would be owed to entity as a result of reimbursable agreement?
Accounts Receivable
What type of asset account would be used to give funds to other in anticipation of future benefit?
Advances
FBwT is found in which FMR Volume
Volume 4, Ch.2
Undistributed Disbursement is found in which FMR Volume
Volume 3, Ch.11
Imprest Funds is found in which FMR Volume
Volume 4, Ch.3
A/R is found in which FMR Volume
Volume 4, Ch.2
Advances are found in which FMR Volume?
Volume 4, Ch.5
Fixed assets are also known as?
Property, Plant, and Equipment
Amount Paid for asset plus transportation, installation, and other related costs of obtaining asset and preparing it for use is what?
Acquisition Cost
What term refers to allocation of full acquisition value over expected life?
Depreciation
Ammunition is considered what type of asset?
OM&S
Museum collections, monuments, assets acquired in formation of a nation are known as what?
Heritage Assets
Assets that are in performance of a defense mission, such as the Pentagon, or Ft. Monroe are referred to as what?
Multi-Use Heritage Assets
Land and Land rights acquired for in connection with GPP&E land acquired via public domain or land acquired at not cost is referred to as what?
Stewardship Land
What are the 4 different financial statements?
1) Balance Sheet
2) Statement of Net Cost
3) Statement of Changes in Net Position
4) Statement of Budgetary Resources
Significant accounting principles and policies used by organization should be summarized where?
Footnotes
Balance sheet shows financial for a?
Specific Point in Time
Managerial Cost Accounting Standards are found in which SFFAS?
SFFAS 4
Is managerial cost accounting what are the four categories that dictate full cost?
1) Direct Cost
2) Indirect Costs
3) Intra-entity Costs
4) Inter-entity Costs
Direct Labor and materials are known as what type of costs?
Direct Costs
Overhead costs are known as what type of costs?
Indirect Costs
General and Administrative Costs are known as what type of costs?
Intra-entity Costs
Costs of goods and services received from other entities are known as what type of costs?
Inter-entity costs
For inter-entity costs who is responsible for providing cost data?
Providing entity
For inter-entity costs, identification of costs are limited to what?
Material Amounts
What are the two most common ratios used for ratio analysis?
1) Current Ratio
2) Quick Ratio
What measures entities ability to meet its current obligations?
Current Ratio
What is a test to an entity’s immediate solvency?
Quick Ratio
What do you compare when considering the quick ratio?
Sum of Cash, Aged A/R (known as quick assets) to current liabilities
What are the two main ways to use ratios?
1) Trend Analysis
2) Comparative Analysis
Which analysis determines how entity is performing at a single point in time relative to like entities?
Comparative Analysis
Which analysis involves determining how ratio behaved across time and can predict where entity is heading?
Trend Analysis
Quick ratio is also known as what type of test?
Acid
What is the formula for the current ratio?
Cash + A/R + Inventory / Current Liabilites
What is the formula for the quick ratio?
Cash + A/R / Current Liabilities
What ratio do you desire for a strong current ratio?
2:1
What ratio do you desire for a strong quick ratio?
1:1
