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

The ACFR provides a complete, audited financial overview of a state or local government, including financial statements, notes, and statistical data.

Question 2

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

Accepted Answer

Current financial resources / modified accrual

Answer

Governmental funds use the current financial resources measurement focus and modified accrual basis of accounting under GASB standards.

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

Enterprise funds (a type of proprietary fund) account for government business-type activities that are financed primarily through user charges.

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

Fund balance is the difference between governmental fund assets/deferred outflows and liabilities/deferred inflows, reflecting available current financial resources.

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

The Chief Financial Officers Act of 1990 requires 24 major federal agencies to produce annual audited financial statements and establishes CFO positions.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Government Financial Management 2