ACCOUNTING 405 PRACTICE EXAM 2026
QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● C. Unanimous approval by the FASAB.
Answer: Which of the following is not a part of the FASAB due process
for establishing a federal financial accounting standard?
●● A. Congress, executives, program managers, and citizens.
Answer: As identified by FASAB, which of the following are major user
groups of federal financial reports?
●● D. Fund balance with U.S. Treasury.
Answer: The "net position" of a federal agency may include all of the
following components, except:
●● B. To assist report users in evaluating the extent to which tax burdens
have changed.
Answer: Which of the following is not an objective identified in FASAB
Statement of Accounting and Reporting Concepts No. 1?
, ●● C. Maintaining self-balancing sets of proprietary and budgetary
accounts and recording the effects of transactions on both available
budgetary resources and proprietary accounts.
Answer: Which of the following statements most accurately describes
the dual-track accounting system used in federal agency accounting?
●● C. Commitment
Answer: Under federal government accounting, recording the estimated
amount of equipment prior to actually placing an order or entering into a
contract is called a(an):
●● B. Budgetary accounts: $14,400; Proprietary accounts: $0.
Answer: A certain federal agency placed an order for office supplies at
an estimated cost of $14,400. Later in the same fiscal year these supplies
were received at an actual cost of $14,800. Assume commitment
accounting is not used by this agency. At the time the order is placed,
what is the net effect on the budgetary and proprietary track accounts?
●● C. Budgetary Accounts: $400; Proprietary Accounts: $14,800.
Answer: A certain federal agency placed an order for office supplies at
an estimated cost of $14,400. Later in the same fiscal year these supplies
were received at an actual cost of $14,800. Assume commitment
accounting is not used by this agency. At the time the order is received,
what is the net effect on the budgetary and proprietary track accounts?
●● B. Statement of cash flows.
QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● C. Unanimous approval by the FASAB.
Answer: Which of the following is not a part of the FASAB due process
for establishing a federal financial accounting standard?
●● A. Congress, executives, program managers, and citizens.
Answer: As identified by FASAB, which of the following are major user
groups of federal financial reports?
●● D. Fund balance with U.S. Treasury.
Answer: The "net position" of a federal agency may include all of the
following components, except:
●● B. To assist report users in evaluating the extent to which tax burdens
have changed.
Answer: Which of the following is not an objective identified in FASAB
Statement of Accounting and Reporting Concepts No. 1?
, ●● C. Maintaining self-balancing sets of proprietary and budgetary
accounts and recording the effects of transactions on both available
budgetary resources and proprietary accounts.
Answer: Which of the following statements most accurately describes
the dual-track accounting system used in federal agency accounting?
●● C. Commitment
Answer: Under federal government accounting, recording the estimated
amount of equipment prior to actually placing an order or entering into a
contract is called a(an):
●● B. Budgetary accounts: $14,400; Proprietary accounts: $0.
Answer: A certain federal agency placed an order for office supplies at
an estimated cost of $14,400. Later in the same fiscal year these supplies
were received at an actual cost of $14,800. Assume commitment
accounting is not used by this agency. At the time the order is placed,
what is the net effect on the budgetary and proprietary track accounts?
●● C. Budgetary Accounts: $400; Proprietary Accounts: $14,800.
Answer: A certain federal agency placed an order for office supplies at
an estimated cost of $14,400. Later in the same fiscal year these supplies
were received at an actual cost of $14,800. Assume commitment
accounting is not used by this agency. At the time the order is received,
what is the net effect on the budgetary and proprietary track accounts?
●● B. Statement of cash flows.
