GAC Regulatory Compliance & Standards 2

Question 1

Which GASB standard established the framework for measuring fair value in governmental financial reporting?

Accepted Answer

GASB 72

Answer

GASB Statement 72 established guidance on fair value measurement and application for state and local governments.

Question 2

Under the Single Audit Act, which threshold requires a non-federal entity to undergo a single audit?

Accepted Answer

$750,000 in federal expenditures

Answer

The 2 CFR Part 200 Uniform Guidance requires a single audit when federal expenditures equal or exceed $750,000 in a fiscal year.

Question 3

A government entity must recognize an on-behalf payment for fringe benefits when:

Accepted Answer

Another entity makes payments directly to third parties for the government's employees

Answer

GASB 24 requires recognition of on-behalf payments when another entity pays fringe benefits or salary supplements directly on behalf of the government's employees.

Question 4

Which type of federal award requires the recipient to contribute a specified percentage of non-federal resources?

Accepted Answer

Matching grant

Answer

A matching grant requires the recipient to provide a non-federal cost-share or matching contribution as a condition of receiving federal funds.

Question 5

Under 2 CFR Part 200, what is the purpose of an indirect cost rate agreement?

Accepted Answer

To establish the rate at which indirect costs are charged to federal awards

Answer

An indirect cost rate agreement, negotiated with a cognizant agency, establishes the approved rate for allocating indirect costs to federal awards.

(GAC) Governmental Accounting Certification Practice Test

(GAC) Governmental Accounting Certification Practice Test

GAC Regulatory Compliance & Standards 2