The Entry to Record Appropriations Is Notable Because It Involves

question 68

Multiple Choice

The entry to record appropriations is notable because it involves the use of account titles that are unique to the federal government. Which of the following statements is not correct?

• A) The account Unexpended Appropriations is credited at the time of an appropriation.
• B) Unexpended Appropriations is an asset on the federal agency's balance sheet is called "Due from Treasury.
• C) Federal agencies do not typically maintain cash balances. Instead, the ability to draw cash from the Treasury is recognized as an asset at the time of an appropriation with the account Fund Balance with Treasury.
• D) Payments made by Treasury on behalf of the agency are reflected with a credit to Fund Balance with Treasury.

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Definitions:

Operation of Law

A way in which rights or liabilities are automatically transferred or changed due to existing legal rules, rather than the action of the parties.

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum level of quality and will perform as expected, even though it is not explicitly stated in a contract.

Merchantability

A warranty that goods sold will meet a minimum level of quality and will be fit for the purpose for which they are sold.

Implied Warranty

A legal assurance that goods or services meet a minimum level of quality, irrespective of whether it has been explicitly stated.