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Question 1

Which type of cost is generally allowed for a grant under the OMB Uniform Guidance?

Options :

A : interest payments

B : general government expenses

C : materials and supplies

D : lobbying expenses

Answer: C

Question 2

Separate fund financial statements should be presented for

Options :

A : net assets and activities.

B : governmental and proprietary funds.

C : long-term debt.

D : capital assets.

Answer: B

Question 3

A legally separate organization for which the elected officials of the primary government are financially accountable describes a

Options :

A : fiscally dependent organization.

B : component unit.

C : joint venture entity.

D : jointly governed organization.

Answer: B

Question 4

Which of the following events is an example of an expenditure but not an expense?

Options :

A : At the end of the fiscal year, the government signs a contract to buy office furniture.

B : At the end of the fiscal year, the government pays its employees for work performed.

C :

At the end of the fiscal year, the government pays for ten vehicles which will be depreciated over five years.

D :

At the end of the fiscal year, the government receives and pays its electric bill for the previous month.

Answer: C

Question 5

A state department has been developing a new computer system for managing federal grants. The project has the following costs:

What amount should be recorded as the value of the intangible asset?

Options :

A : $575.000

B : $705.000

C : $755,000

D : $915.000

Answer: C