For Governments That Expend Less Than $3 Million of Federal

question 32

Multiple Choice

For governments that expend less than $3 million of federal awards during a year, each federal program for which it expended $300,000 or more is

• A) Always treated as a major federal program.
• B) Treated as a major federal program if it is a high risk Type B program.
• C) Treated as a major federal program if it has not been audited as a major program in either of the two previous years.
• D) Treated as a major federal program only if needed to meet the 50% test.

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Definitions:

Guaranteed Payment

A payment type in partnerships where a partner is assured a certain amount regardless of the firm's profitability.

Accounting Process

The systematic series of steps followed in the accounting profession to track and record financial transactions and prepare financial statements.

Systematic Recording

The organized and consistent documentation of data or observations according to a defined procedure or method.

Traveler's Checks

A form of preprinted, fixed-amount cheques used by travelers to safely carry money; they can be exchanged for local currency.