Reference no: EM131704195

Questions: (True or False) State whether the following assertions are true or false. If false, explain why.

1. Depreciation of general property, plant, and equipment is reported as an expense in the consolidated U.S. government statement of net cost, but not in the statement of net cost prepared by individual agencies.

2. Abraham Lincoln's face appears on Mount Rushmore, but Mount Rushmore's cost does not appear on the face of the consolidated U.S. balance sheet.

3. A year-to-year increase in an agency's liability for vacation leave may not be accrued in the agency's proprietary accounts unless sufficient budgetary resources are available to finance the accrual.

4. The ending balance in the account Expended appropriations is used to report a financing source in an agency's statement of changes in net position.

5. The ending balance in the account Delivered orders-obligations, unpaid remains open at yearend because it is available for payment in the following year; however, the ending balance in the account Undelivered orders-obligations, unpaid is closed out because it is not available for payment in the following year.

6. In the federal government, trust funds are accounted for separately from other funds, but they are not "fiduciary" in nature, so the federal government may borrow from them.