CGAP Government Financial Management 2

Question 1

What is the primary purpose of a government's Comprehensive Annual Financial Report (CAFR), now called Annual Comprehensive Financial Report (ACFR)?

Accepted Answer

To provide a complete audited picture of a government's financial position and results

Answer

To present the approved operating budget

Answer

To summarize federal grant expenditures only

Answer

To report on program performance outcomes

Question 2

Under GASB standards, which measurement focus and basis of accounting applies to governmental funds?

Accepted Answer

Current financial resources / modified accrual

Answer

Economic resources / accrual

Answer

Cash / cash basis

Answer

Economic resources / modified accrual

Question 3

Which type of government fund accounts for activities financed by user fees and intended to be self-supporting?

Accepted Answer

Enterprise Fund

Answer

General Fund

Answer

Special Revenue Fund

Answer

Capital Projects Fund

Question 4

What does a government's 'fund balance' in the General Fund primarily represent?

Accepted Answer

Difference between current financial resources and current liabilities

Answer

Total net assets of the government

Answer

Cash on hand at year-end

Answer

Amount available for capital projects

Question 5

Which federal act requires agencies to produce audited financial statements and links performance to budget?

Accepted Answer

Chief Financial Officers Act of 1990

Answer

Government Performance and Results Act

Answer

Federal Managers' Financial Integrity Act

Answer

Inspectors General Act

Question 6

What is 'interperiod equity' in government financial reporting?

Accepted Answer

The concept that current-year revenues should finance current-year services

Answer

Equal treatment of all fund types in financial statements

Answer

Consistent application of accounting policies across periods

Answer

Fair distribution of tax burdens among citizens