Which of the following federal collections are typically accounted for in a deposit fund?
Answer(s): C
Deposit funds are a type of fiduciary fund used by federal agencies to account for monies held temporarily for others and where the government does not have ownership. These funds are not available for general government use and are excluded from budgetary resources.Examples include:Unidentified remittancesBid deposits or earnest moneyCollections awaiting resolution of ownershipThese do not represent revenue to the federal government and are instead liabilities until disbursed.Relevant
Treasury Financial Manual (TFM), Volume I, Part 2, Chapter 1500 Deposit Fund AccountsGAO Red Book Federal Appropriations LawFASAB SFFAS No. 1 Accounting for Selected Assets and LiabilitiesAnswer : C. funds held temporarily until ownership is determined
A special-purpose government is considered a primary government when it has any of the following characteristics EXCEPT that it
Answer(s): A
A special-purpose government (e.g., a school district, utility authority) is considered a primary government when it meets at least one of the following conditions:Has a separately elected governing bodyIs legally separateIs fiscally independent of other governmentsThe reliance on revenue projections from another entity does not preclude a government from being a primary government. What matters is legal and fiscal independence.Relevant
GASB Statement No. 14 The Financial Reporting EntityGASB Statement No. 39 and No. 61 (Amendments to Statement 14)GASB Codification Section 2100 Defining the Financial Reporting EntityAnswer : A . relies on revenue projections from another government entity
Which federal agency activities would most likely use a trust fund to account for funds received and paid?
Answer(s): B
Comprehensive DetailedTrust funds in the federal government are used to account for assets held in a fiduciary capacity for specific purposes. These funds typically involve revenue dedicated by law for particular programs and purposes, such as:Social Security Trust FundMedicare Trust FundUnemployment Trust FundThese involve collections from earmarked taxes or contributions and are used to provide specific benefits or services.Relevant
FASAB SFFAS No. 27 Identifying and Reporting Earmarked FundsTreasury Financial Manual Trust Fund AccountsOMB Circular A-11, Section 20 Federal Fund and Trust Fund DefinitionsAnswer : B . provisions of benefits, goods or services financed by specific revenue sources
Which type of cost is generally allowed for a grant under the OMB Uniform Guidance?
Under OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), allowable costs under federal grants must be:Necessary and reasonable for program performanceAllocable to the grantIn accordance with generally accepted accounting principlesNot otherwise unallowableMaterials and supplies directly benefiting the grant are generally allowable. In contrast, lobbying, interest payments, and general governmental costs not tied to the grant are explicitly unallowable.Relevant
2 CFR Part 200 Uniform Guidance (Subpart E Cost Principles)2 CFR §200.403 Factors affecting allowability of costs2 CFR §200.422 Lobbying2 CFR §200.449 InterestAnswer : C . materials and supplies
The quarterly inventory record below has been provided for use in preparing the organization's financial statements. Based upon the information provided, what method of inventory valuation is used by the organization?
The organization's inventory records show that the beginning and ending amounts and values change each month, and the relationship between units and dollar values suggests that the cost per unit is averaged, not fixed (as with FIFO or LIFO). Let's evaluate January:Beginning: 1,200 units / $2,400 $2.00 per unitPurchased: 800 units / $2,000 $2.50 per unitEnding: 600 units / $1,500 $2.50 per unitThe ending value of $1,500 for 600 units gives a per-unit cost of $2.50, matching the purchase cost in January. This suggests the system uses a weighted average cost method rather than tracking the specific cost layers (as FIFO or LIFO would).Relevant
FASAB SFFAS No. 3 Accounting for Inventory and Related PropertyGAAP and GASB guidelines on inventory valuationGFOA Best Practices Inventory and Supply Chain ManagementAnswer : B . average cost
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