CGFM Exam 2 questions with correct answers

I 1.The Defense Logistics Agency holds jet fuel as inventory, which it sells to support flight operations. The table on the left provides beginning/ending fiscal year 2017 inventory levels and purchase information. Assuming the agency uses the FIFO inventory valuation method, what was the cost of goods sold for jet fuel in fiscal year 2017? CORRECT ANSWER Correct Answer: $133.50 I 2.In financial reporting, consistency of communication means CORRECT ANSWER Correct Answer: if accounting principles have changed or if the financial reporting entity has changed, the nature and reason for the change, as well as the effect of the change, should be disclosed. I 3.Budgeting is an element of which policy? CORRECT ANSWER Correct Answer: fiscal I 4.Another term for the federal government baseline budget is CORRECT ANSWER Correct Answer: a current level of service budget. I 5.As described by FASAB, the four groups of people to whom the government is accountable and are, therefore, potential users of federal financial statements are CORRECT ANSWER Correct Answer: citizens, Congress, executives, and program managers. I 6.When establishing an allowance for doubtful accounts, the journal entry required is a debit to CORRECT ANSWER Correct Answer: Bad Debts Expense and a credit to the Allowance fo