Section 3, Chapter 2 and 3

Question 1

What are budgetary resource?

Answer 1

amounts available to incur obligations in a given year

Question 2

What is an obligation?

Answer 2

binding agreement that will result in outlays

Question 3

What is an outlay?

Answer 3

a payment to liquidate an obligation. Outlays are a measure of government spending.

Question 4

What is an allotment?

Answer 4

formal delegation of authority, by the head of a federal entity to other entity employees, to incur obligations within the allotted amount.

Question 5

What is a commitment?

Answer 5

to enhance planning and control, agencies reserve budgetary authority through recognition of commitments for planned spending based on estimates. These entries do not legally encumber the allotment.

Question 6

What is the difference between proprietary accounting and budgetary accounting?

Answer 6

Proprietary accounting focuses on the financial consequences of operations during the period and financial position of the entity.

Budgetary accounting focuses on planning and control of spending.

Question 7

What is the CFO Act?

Answer 7

• bring more effective general and financial management practices to government
• provide for the improvement of systems accounting, financial management, and internal controls
• provide complete, reliable, timely and consistent financial info.
• est OMB director

Question 8

Who does FASAB believe are users of financial reports

Answer 8

1. ) Citizens
2. ) Congress
3. ) Executives
4. ) Program Managers

Question 9

What are federal financial reporting objectives?

Answer 9

1. ) budgetary integrity
2. ) operating performance
3. ) stewardship
4. ) system and control