Accounting and Finance Flashcards

Under DoD accounting standards, which fund type is used to finance operations that provide goods or services to other government agencies on a cost-reimbursable basis?

Answer: Revolving Fund

Revolving funds (working capital funds) finance business-like operations that sell goods or services to other agencies and recover costs through user charges.

The Statement of Budgetary Resources (SBR) reports which of the following?

Answer: Budgetary resources available and their status

The SBR presents budgetary resources available to an agency and the status of those resources at period end.

Which accounting basis does the federal government use for budgetary accounting versus proprietary accounting?

Answer: Cash for budgetary; accrual for proprietary

Federal budgetary accounting uses a cash/obligation basis while proprietary (financial) accounting uses the full accrual basis.

A DoD component records an expense for a utility bill received but not yet paid. This is an example of which accounting principle?

Answer: Accrual accounting

Accrual accounting records expenses when incurred regardless of when cash is paid.

What is the primary purpose of subsidiary ledgers in DoD financial management?

Answer: To provide transaction-level detail supporting general ledger control accounts

Subsidiary ledgers provide detailed transaction records that support and reconcile to the control account totals in the general ledger.

Under the Treasury Financial Manual, an entity must reconcile its Fund Balance with Treasury (FBWT) account to the Treasury's records at what minimum frequency?

Answer: Monthly

Agencies are required to reconcile their FBWT account with Treasury records at least monthly.

Which DoD financial statement reports the entity's assets, liabilities, and net position at a specific point in time?

Answer: Balance Sheet

The Balance Sheet (Consolidated Balance Sheet) presents assets, liabilities, and net position as of a specific date.