Accounting and Reporting for the Federal Government
- What is the primary purpose of the Federal Financial Management Improvement Act (FFMIA)?
- A) To establish new tax regulations for federal agencies
- B) To improve the financial management and accountability of federal agencies
- C) To provide guidelines for federal budget allocations
- D) To monitor federal employee performance
- Which of the following is an example of an expense that should be recorded as a liability in federal government accounting?
- A) Salaries for federal employees
- B) A pending payment for contracted services not yet received
- C) The cost of office supplies purchased in the current year
- D) Depreciation of government-owned assets
- What does the acronym ‘SGL’ stand for in federal government accounting?
- A) Standard General Ledger
- B) Standard Government Ledger
- C) Single General Ledger
- D) Standard General Liability
- Under the Federal Accounting Standards Advisory Board (FASAB), which basis of accounting is used for federal budgetary reporting?
- A) Accrual basis
- B) Modified accrual basis
- C) Cash basis
- D) Budgetary basis
- What is the purpose of the Federal Financial Statement Audit?
- A) To review agency budgets for compliance with fiscal laws
- B) To evaluate and report the financial position and operations of federal agencies
- C) To ensure employees follow expense reporting procedures
- D) To audit federal grants distributed to private organizations
- Answer: B) To evaluate and report the financial position and operations of federal agencies
- Which financial statement provides a snapshot of the federal government’s assets, liabilities, and net position?
- A) Statement of Budgetary Resources
- B) Balance Sheet
- C) Statement of Net Cost
- D) Statement of Changes in Net Position
- What is the main purpose of the Statement of Budgetary Resources (SBR)?
- A) To detail cash inflows and outflows
- B) To report the financial status of an agency at year-end
- C) To provide information on how budgetary resources are used and managed
- D) To disclose a detailed summary of all assets and liabilities
- Which of the following statements about federal grants is true?
- A) Federal grants are treated as revenue when awarded.
- B) Federal grants should be recognized when earned, not when awarded.
- C) Federal grants are reported on the Statement of Net Cost.
- D) Federal grants are only recorded when cash is received.
- Under FASAB standards, which of the following would be considered a direct expense?
- A) Depreciation on buildings
- B) Salaries of employees directly working on a specific project
- C) Interest on government bonds
- D) Rent for office space used by administrative staff
- What does the term “budgetary accounting” refer to in the federal government context?
- A) The process of recording expenses for tax purposes
- B) The tracking of budgetary resources to determine compliance with budgetary laws and regulations
- C) The recording of assets and liabilities
- D) The preparation of financial statements for external audit
- What is the role of the Office of Management and Budget (OMB) in federal financial management?
- A) To manage federal agency payroll and salaries
- B) To oversee the preparation of the President’s budget and monitor its execution
- C) To audit financial statements of all federal agencies
- D) To compile a comprehensive financial report for Congress
- Which of the following is not considered a type of asset in federal government accounting?
- A) Cash
- B) Accounts Payable
- C) Equipment
- D) Investments in other federal agencies
- In federal financial reporting, what is the significance of the Statement of Changes in Net Position?
- A) It shows budgetary resources received by the government.
- B) It provides a summary of revenue collected and expenses incurred.
- C) It reports changes in the net position of federal entities over a period.
- D) It displays the cash flow of all federal agencies.
- Which of the following would be recorded as a contingent liability in federal accounting?
- A) Rent payable for government facilities
- B) Potential payments from lawsuits pending court decisions
- C) Salaries payable to federal employees
- D) Interest accrued on bonds payable
- Which statement accurately describes the difference between accrual accounting and budgetary accounting in the federal government?
- A) Accrual accounting focuses on cash flows, while budgetary accounting records obligations and outlays.
- B) Accrual accounting records expenses when incurred, while budgetary accounting focuses on when funds are obligated and spent.
- C) Accrual accounting is only used by the private sector, while budgetary accounting is used by the public sector.
- D) Accrual accounting records only actual revenue, while budgetary accounting records all anticipated revenue.
- What is the main difference between the Statement of Net Cost and the Statement of Budgetary Resources?
- A) The Statement of Net Cost reports on budgetary resources, while the Statement of Budgetary Resources reports on financial position.
- B) The Statement of Net Cost measures the costs of government operations, while the Statement of Budgetary Resources shows the use of budgetary resources.
- C) The Statement of Net Cost is used for tax reporting, while the Statement of Budgetary Resources is used for external audit.
- D) The Statement of Net Cost reports the cash balance, while the Statement of Budgetary Resources reports revenue collections.
- Which document outlines the accounting standards for federal entities?
- A) Government Accountability Office (GAO) Handbook
- B) Federal Accounting Standards Advisory Board (FASAB) Statements
- C) Office of Management and Budget (OMB) Circulars
- D) U.S. Code Title 31
- What is the purpose of the Statement of Custodial Activity?
- A) To record the amount of taxes owed by the federal government
- B) To report receipts and disbursements of federal funds collected on behalf of others
- C) To report the cash flow for custodial services provided by the government
- D) To disclose government investments in private corporations
- Which of the following best describes a “fund balance with Treasury”?
- A) Cash held by federal agencies that is not part of the budget
- B) The total revenue collected by the government in a fiscal year
- C) The unspent budget authority available to an agency
- D) The balance of funds held by the U.S. Treasury for use by federal agencies
- What is the definition of “obligations” in the context of federal budgetary accounting?
- A) Cash payments made by federal agencies
- B) Commitments made by federal agencies to spend funds for specific purposes
- C) Revenue collected from federal taxes
- D) Funds set aside for future expenditures
- Which of the following is considered an “imputed cost” in federal financial reporting?
- A) The salary paid to a federal employee
- B) The depreciation of government-owned assets
- C) Pension benefits provided to retired government employees
- D) The cost of materials for a government project
- In federal government accounting, what does “unobligated balance” refer to?
- A) The amount of funds spent by an agency that has not yet been reimbursed
- B) Funds that remain after all budget obligations have been fulfilled
- C) The balance of funds available for future obligations
- D) The difference between budgetary authority and actual spending
- What type of accounting basis does the U.S. federal government use for external financial reporting?
- A) Modified accrual basis
- B) Accrual basis
- C) Cash basis
- D) Budgetary basis
- Which of the following would be classified as a direct cost in federal financial reporting?
- A) Rent for government office space
- B) Salaries of employees working on specific research projects
- C) Administrative expenses for the entire agency
- D) Interest on government bonds
- What is the purpose of the Federal Financial Management Improvement Act (FFMIA)?
- A) To implement new tax regulations for the government
- B) To ensure financial management systems comply with federal standards
- C) To set up new financial management systems in private corporations
- D) To reduce the budget deficit through stricter expense controls
- Which statement correctly describes “net cost” in federal financial reporting?
- A) The total revenue collected by the federal government during a fiscal year
- B) The difference between gross revenue and total liabilities
- C) The difference between program costs and any related revenues
- D) The cash balance at the end of the fiscal year
- What type of reporting is required under the Federal Managers’ Financial Integrity Act (FMFIA)?
- A) Annual revenue and expenditure reports to Congress
- B) An internal control report to ensure program efficiency and effectiveness
- C) Quarterly financial statements for the Office of Management and Budget
- D) A report detailing all financial transactions within an agency
- Which document is used by federal agencies to outline and track their budgetary obligations and outlays?
- A) Statement of Financial Position
- B) Statement of Budgetary Resources (SBR)
- C) Statement of Net Cost
- D) Statement of Custodial Activity
- What is the primary purpose of the Statement of Financing in federal financial reports?
- A) To show the total revenues collected by federal agencies
- B) To reconcile the difference between budgetary and financial accounting results
- C) To report on budgetary resources obligated by agencies
- D) To provide a breakdown of administrative costs for each department
- Which of the following is an example of a “contingent asset” in federal accounting?
- A) An unpaid government grant due to be received in the next fiscal year
- B) Cash held in trust by the federal government
- C) A lawsuit settlement expected but not guaranteed to be won
- D) Buildings owned by federal agencies
- Which of the following is true about “unearned revenue” in federal financial statements?
- A) It is recorded when the service has been performed.
- B) It represents funds collected before the related service is provided.
- C) It is only recorded for grants that have been fully paid.
- D) It reflects expenditures made without a proper obligation.
- What does the “federal budget authority” refer to?
- A) The total amount of taxes collected during a fiscal year
- B) The legal authority provided to federal agencies to obligate funds
- C) The actual cash available in the Treasury for spending
- D) The total debt incurred by the federal government
- Under federal accounting principles, when should “obligations” be recognized?
- A) Only when cash is disbursed for the expense
- B) When a contract or agreement is signed to acquire goods or services
- C) When the budget authority is approved by Congress
- D) When an invoice is received by the federal agency
- What type of financial statement provides information on the costs incurred by federal programs and the revenue generated from them?
- A) Statement of Budgetary Resources
- B) Statement of Financial Position
- C) Statement of Net Cost
- D) Statement of Cash Flows
- Which of the following is true about “imputed costs” in federal financial reporting?
- A) They include expenses paid out of agency budgets.
- B) They are costs that represent government services provided at no charge to an agency.
- C) They reflect expenses that do not require cash outlay.
- D) They are only recorded when cash transactions occur.
- What does the “Treasury General Fund” represent?
- A) A fund set aside for special projects approved by Congress
- B) A collection of all funds that the Treasury uses for daily government expenses
- C) A reserve fund held for financial audits
- D) A fund only used for long-term investments by federal agencies
- Which type of federal financial statement is designed to report the financial position and changes in net position for government-wide activities?
- A) Statement of Budgetary Resources
- B) Statement of Net Cost
- C) Balance Sheet
- D) Statement of Changes in Net Position
- What is the purpose of “audit trails” in federal financial management?
- A) To track and prevent unauthorized access to financial data
- B) To verify that financial transactions have been properly recorded and supported
- C) To create a record of the budget planning process
- D) To calculate interest and dividends on federal bonds
- Which of the following is a requirement under the Federal Financial Management Improvement Act (FFMIA)?
- A) All federal agencies must conduct a yearly audit by a third-party firm.
- B) Federal agencies must implement financial systems that comply with applicable federal standards.
- C) Federal agencies must submit quarterly budget reports to Congress.
- D) Federal agencies must create annual financial reports in Excel format.
- What is “obligated balance” in federal budget terminology?
- A) The total cash balance that remains unspent at the end of the fiscal year
- B) The amount of funds that have been legally committed for future payment
- C) The difference between budget authority and actual spending
- D) The funds that have already been paid to contractors
- What is the primary function of the Statement of Budgetary Resources (SBR)?
- A) To report the federal government’s cash flows
- B) To summarize revenue and expenditure accounts for government programs
- C) To show how budgetary resources are allocated and used by federal agencies
- D) To disclose the financial position of government entities at year-end
- Which type of government financial reporting focuses on the stewardship of public funds?
- A) Budgetary financial reporting
- B) External financial reporting
- C) Internal financial reporting
- D) Compliance reporting
- What does “program costs” refer to in federal financial reporting?
- A) The total budget allocated to a federal agency
- B) Expenses incurred to support a federal program’s operations and objectives
- C) The cost of collecting and processing tax revenue
- D) Costs associated with the sale of government assets
- What is the term used for funds that have been appropriated but not yet spent or obligated?
- A) Unobligated balance
- B) Fund balance with Treasury
- C) Undistributed revenue
- D) Unfunded liability
- Which of the following is true regarding “funds from dedicated collections”?
- A) They are used only for administrative costs.
- B) They must be used for specific purposes defined by law.
- C) They represent general revenue collected by the Treasury.
- D) They can be used for any budgetary purpose at the discretion of the President.
- What is “budgetary accounting” primarily concerned with in federal financial management?
- A) Recording actual revenue received and expenses incurred
- B) Tracking the obligation and outlay of budgetary resources
- C) Preparing financial statements for external stakeholders
- D) Analyzing investment returns from government assets
- Which of the following would be reported as “earned revenue” in federal financial accounting?
- A) Grants received from other government agencies
- B) Fees charged for services provided by a federal agency
- C) Donations from private organizations
- D) Interest on government bonds
- Under federal accounting, what does “unexpended appropriation” refer to?
- A) Funds that have been allocated but not yet obligated or spent
- B) Government revenue that is yet to be recognized
- C) The amount spent on grants that were not used during the fiscal year
- D) Revenue that exceeds planned expenditures
- Which of the following is true about “current assets” in federal financial statements?
- A) They are assets that are expected to be converted to cash or used up within one year.
- B) They include long-term investments and equipment.
- C) They are only recognized when cash is collected.
- D) They reflect the value of federal bonds held by the Treasury.
- What is the primary objective of federal financial management systems according to the Federal Financial Management Improvement Act (FFMIA)?
- A) To streamline the budget process to cut costs
- B) To establish a framework for enhancing the reliability of financial information and compliance with laws
- C) To prepare monthly reports for Congress
- D) To ensure agencies only spend budgeted amounts without exceeding limits
- What does the term “deficit” refer to in federal financial reporting?
- A) The difference between budget authority and obligations incurred
- B) The amount by which government spending exceeds revenue in a fiscal year
- C) The total debt held by the U.S. Treasury
- D) The amount of revenue collected from taxes and fees
- Which of the following financial statements provides an overview of the revenues and expenses of a federal agency?
- A) Statement of Net Cost
- B) Statement of Budgetary Resources
- C) Balance Sheet
- D) Statement of Cash Flows
- What is the main purpose of the Statement of Changes in Net Position?
- A) To display the budgetary resources available to an agency
- B) To show how the net position of an entity changes during the reporting period
- C) To report the cash flow from operating activities
- D) To detail all financial transactions of the federal government
- In federal financial management, what is a “budgetary authority”?
- A) The amount of revenue that an agency can collect
- B) The power given to an agency to use budgetary resources for specific programs
- C) The total assets an agency holds
- D) The authority to manage federal employees
- What is the “accounting entity” in federal government accounting?
- A) A group of private-sector organizations that partner with the government
- B) A unit within a federal agency responsible for financial reporting
- C) A federal agency or department that prepares its own financial statements
- D) A government-wide body that oversees budgetary allocations
- Which of the following best describes “obligations incurred” in federal financial accounting?
- A) Payments that have been made and recorded in the financial statements
- B) Amounts that an agency has committed to spend for goods or services
- C) Revenue collected from taxes and fees
- D) Expenditures that exceed the budgeted amount for a given period
- In federal financial reporting, which of the following is an example of “non-exchange revenue”?
- A) Fees for government services
- B) Taxes collected from the public
- C) Interest earned on government bonds
- D) Grants awarded to state governments
- Which of the following is true about “appropriations” in federal accounting?
- A) They represent a legally authorized limit on how much an agency can spend.
- B) They are funds transferred from one agency to another for joint projects.
- C) They are used exclusively for investments in government bonds.
- D) They are only used for research and development expenses.
- What does “unearned revenue” represent on federal financial statements?
- A) Funds collected by the government before the related goods or services are provided
- B) Revenue earned during the fiscal year
- C) The total amount of tax refunds to be issued
- D) Interest income from federal investments
- Which financial statement would be most useful for assessing an agency’s ability to meet its current financial obligations?
- A) Statement of Net Cost
- B) Balance Sheet
- C) Statement of Budgetary Resources
- D) Statement of Changes in Net Position
- What type of asset would “accounts receivable” be classified as in federal financial statements?
- A) Current asset
- B) Non-current asset
- C) Intangible asset
- D) Investment asset
- Which of the following best describes “imputed financing sources” in federal financial reporting?
- A) Revenues generated from the sale of federal assets
- B) Contributions by the federal government to support programs in other agencies
- C) Amounts recognized as revenue without a cash transaction occurring
- D) Interest earned on federal loans
- How is “net position” defined in federal financial accounting?
- A) The total revenue earned by a government agency during the year
- B) The difference between an entity’s total assets and total liabilities
- C) The sum of all budgetary obligations and outlays for the year
- D) The amount of unrestricted cash on hand at year-end
- What type of revenue is considered “exchange revenue” in federal accounting?
- A) Taxes collected from the public
- B) Donations received by a government agency
- C) Fees charged for government services rendered
- D) Grants from other federal agencies
- Which of the following statements is true about the “cash basis” of accounting?
- A) It records revenue and expenses when earned or incurred, regardless of cash movement.
- B) It recognizes revenue when it is collected and expenses when they are paid.
- C) It is only used in federal financial statements for investment tracking.
- D) It is used to prepare the Statement of Net Cost.
- Which document is used to ensure compliance with the Federal Financial Management Improvement Act (FFMIA)?
- A) Annual financial statements prepared by the General Accounting Office (GAO)
- B) Monthly budget reports submitted to Congress
- C) Internal control reports provided by federal agencies
- D) Statements of Budgetary Resources submitted to OMB
- What is the term for the cost of federal programs that includes direct and indirect expenses incurred by an agency?
- A) Program cost
- B) Gross expense
- C) Budgetary outlay
- D) Administrative cost
- Which of the following best describes “restricted assets” in federal financial accounting?
- A) Assets that can be used for any budgetary purpose
- B) Assets that are set aside for specific programs or uses by law or regulation
- C) Assets that are only available to cover future debt obligations
- D) Assets that have been donated and cannot be liquidated
- What does “program integrity” refer to in federal financial management?
- A) The accuracy and reliability of budget forecasts
- B) The prevention of fraud and misuse of government resources
- C) The consistent tracking of non-budgetary financial transactions
- D) The use of technology to streamline budget processes
- Which of the following is a characteristic of “fixed assets” in federal accounting?
- A) They are always short-term in nature and can be liquidated quickly.
- B) They represent long-term investments or property used for operations.
- C) They include only cash held by the federal government.
- D) They do not depreciate over time.
- In federal financial reporting, what does “capitalization” refer to?
- A) The process of reducing agency expenditures to match budget limits
- B) The recording of an asset’s cost on the balance sheet over its useful life
- C) The allocation of revenue to different government programs
- D) The transfer of assets from one agency to another
- What is an “unfunded liability” in federal accounting?
- A) A cost that has been paid but not yet recorded in the budget
- B) A liability for which funds have not been specifically set aside
- C) A legal obligation that requires payment immediately
- D) A loan taken by the government from private financial institutions
- Which of the following best describes “financial audit” in the context of federal government reporting?
- A) An evaluation performed by the GAO to determine compliance with financial laws
- B) An independent examination of financial statements to ensure accuracy and compliance
- C) A review process to assess how funds are allocated to different departments
- D) A quarterly review conducted by OMB to track budget spending
- Which of the following is an example of “non-exchange transactions” in federal accounting?
- A) Charges for park entrance fees
- B) Payments received for government contracts
- C) Social Security benefits paid to eligible citizens
- D) Revenue from federal land leases
- What does “compliance reporting” in federal financial management ensure?
- A) That agencies create their own financial reports without oversight
- B) That all financial reporting aligns with laws and regulations
- C) That revenues collected match planned budget forecasts
- D) That audit results are posted on agency websites
- Which of the following statements is true regarding the “Statement of Net Cost”?
- A) It shows the total amount of revenue collected by the federal government.
- B) It provides information about the cost of services provided and the revenue generated from those services.
- C) It summarizes the cash flow within a specific period.
- D) It details the budgetary resources available to an agency.
- What is the role of the Office of Management and Budget (OMB) in federal financial reporting?
- A) To prepare the financial statements for each federal agency.
- B) To oversee the financial management and budgetary policies across the federal government.
- C) To conduct financial audits for the GAO.
- D) To collect taxes on behalf of the federal government.
- What is “budgetary outlay” in federal financial management?
- A) The total revenue collected during the fiscal year.
- B) The amount of money allocated to an agency by Congress.
- C) The actual expenditure of funds to fulfill obligations.
- D) The total budget authority available to an agency.
- In federal financial accounting, what is an example of a “contingent liability”?
- A) The future payment of a lease obligation.
- B) A pending lawsuit where the outcome is uncertain.
- C) Regular payments for employee benefits.
- D) Immediate costs of operations incurred during the fiscal year.
- What is the main purpose of the “Statement of Budgetary Resources”?
- A) To present the cash flow for the fiscal year.
- B) To show the sources and status of budgetary resources within an agency.
- C) To detail the assets and liabilities of an agency.
- D) To summarize the net cost of services provided.
- Which of the following best describes the concept of “full accrual accounting” in the context of federal financial reporting?
- A) Revenue and expenses are recognized only when cash is received or paid.
- B) Revenue is recorded when earned and expenses when incurred, regardless of when cash changes hands.
- C) Only financial transactions involving a federal agency’s direct cash flows are recorded.
- D) Only significant transactions that exceed a certain threshold are recorded.
- What is the main characteristic of “fund accounting” in federal financial management?
- A) It combines all revenue and expenses into a single account.
- B) It tracks funds by specific categories, each with its own set of regulations.
- C) It only applies to funds used for long-term investments.
- D) It is used to track cash flow within private-sector organizations.
- What does “offsetting receipts” refer to in the federal budget?
- A) The reduction in government spending due to revenue earned from a program.
- B) The interest earned from government investments.
- C) Payments made to government employees for overtime work.
- D) Money transferred to state governments for public programs.
- Which of the following is considered an “imputed cost” in federal financial reporting?
- A) Salaries paid to employees for direct services rendered.
- B) The cost of purchasing equipment.
- C) The value of services provided by another government entity at no charge.
- D) Revenue generated from user fees.
- What type of financial report would detail a federal agency’s liabilities and assets?
- A) Statement of Budgetary Resources
- B) Statement of Net Cost
- C) Balance Sheet
- D) Statement of Changes in Net Position
- Which of the following is a key feature of the Federal Financial Management Improvement Act (FFMIA)?
- A) It mandates that financial reporting be done only in cash-based terms.
- B) It requires agencies to establish a system of internal control and financial reporting standards.
- C) It eliminates the need for annual financial audits.
- D) It allows agencies to manage their own budget allocations without oversight.
- Which of the following is true regarding “fund balances with Treasury”?
- A) They represent the total revenue collected by the Treasury in a given fiscal year.
- B) They are funds held by federal agencies that can be spent without legislative approval.
- C) They reflect the available cash balance in the Treasury for government programs.
- D) They include all financial resources held in private bank accounts by federal agencies.
- Which of the following is considered “unaudited” financial information in federal agencies?
- A) Monthly budgetary reports submitted to OMB.
- B) Preliminary financial data that has not undergone an external audit.
- C) Final year-end financial statements certified by the GAO.
- D) Revenue and expense reports for public awareness.
- What is “net position” used for in the federal financial statements?
- A) To determine the total revenue generated by the government.
- B) To assess the difference between an agency’s assets and liabilities.
- C) To outline all financial transactions of the year.
- D) To track the cash balance held by the Treasury.
- Which of the following best describes “program income”?
- A) Income earned from government bonds.
- B) Revenue generated from services provided by an agency that supports its programs.
- C) Revenue from federal income taxes.
- D) Payments received from international organizations.
- What does the “Statement of Changes in Net Position” provide information about?
- A) Changes in the budgetary resources of an agency.
- B) The allocation of assets across different budget programs.
- C) How an agency’s net position has changed during the reporting period.
- D) Cash flows and expenditures for the fiscal year.
- Which type of federal expense is considered “discretionary spending”?
- A) Interest on national debt.
- B) Social Security benefits.
- C) Military and educational programs funded by the annual budget.
- D) Medicare expenditures.
- Which of the following financial statements is required by the Federal Financial Accounting Standards Advisory Board (FASAB) for federal entities?
- A) Statement of Activities.
- B) Statement of Financial Position.
- C) Statement of Financial Accounting Standards (SFAS).
- D) Statement of Net Cost.
- What is the role of the “General Fund” in the federal budget?
- A) To record all income received from private corporations.
- B) To manage restricted financial resources for specific programs.
- C) To hold the government’s general revenues that can be used for any purpose.
- D) To calculate the total budget deficit.
- In the context of federal financial management, what does “obligated balance” refer to?
- A) The amount of money collected in taxes that has not been spent.
- B) The total value of goods and services paid for in cash.
- C) The funds that have been committed but not yet paid out.
- D) The net cost of providing services to the public.
- Which of the following best describes “earned income” in the context of federal financial management?
- A) Revenue received from the sale of federal assets.
- B) Income generated from government programs, such as fees or charges for services.
- C) Interest income from government-held investments.
- D) Revenue from taxes collected on federal employees.
- What is meant by “unobligated balance” in the federal budget?
- A) The funds that have been committed but not yet used.
- B) The portion of budget authority that has not been spent or obligated.
- C) The portion of taxes that have not been collected.
- D) The amount by which revenue exceeds expenses for the fiscal year.
- Which of the following financial statements would show the government’s net cost of operations?
- A) Statement of Budgetary Resources.
- B) Statement of Net Cost.
- C) Balance Sheet.
- D) Statement of Cash Flows.
- What does “federal financial reporting” primarily focus on?
- A) Tracking expenses related to military operations only.
- B) Providing a detailed record of the revenues and expenditures of the federal government.
- C) Monitoring the stock market performance of federal investments.
- D) Calculating the total number of federal employees in a fiscal year.
- Which of the following best describes the concept of “full cost accounting” in federal financial management? –
- A) Only considering the direct expenses of a program. –
- B) Including both direct and indirect costs associated with a program. –
- C) Calculating revenue generated exclusively from direct transactions. –
- D) Determining the profit margin of federal agencies. –
Answer: B) Including both direct and indirect costs associated with a program. –
Explanation: Full cost accounting involves considering all costs, both direct and indirect, associated with a federal program or service. This approach provides a comprehensive view of the total expenses incurred.