Not sure when exactly the Fed accounts for USD printed – i.e. only once distributed to somebody else, or as soon as they're printed and still owned by the Fed – but even in the latter case, asset and liability work out to exactly zero.

So this million USD might or might not have been accounted for, but it definitely does not need to be budgeted for.

So, in your mind, when the Federal Reserve prints a dollar bill - what's happening in accounting terms? I don't think your understanding of the way this works is consistent with the concept of money supply.

For the Fed though that liability is just a line in a spreadsheet.

Yes the Fed creates an entry in the balance sheet by convention but it’s basically just a formality to the currency creator.

I'm not really familiar with accounting in English but is it really a liability in double-entry accounting? Wouldn't generating money basically be income? So if you sell $1000 worth of stuff, you credit the sales account for $1000 and debit your cash/bank account for $1000, and the account's basically a bottomless pit where you can draw as long as you're generating income.

I’m certain there’s policy that allows for national mint to create non-spendable exemplars of currency in a way that does not count as cash.

Yes, but the liability account in the Fed's case is /dev/null, isn't it?

Does the USG not use quad entry?

I mean, that's a very corporate accounting way of looking at it. But countries are not corporations, or even banks, and the abstraction is so leaky it's pretty much never worth using.