CGFM Practice Test

CGFM Exam at a Glance

What changed for CGFM in 2026

• Oct 26, 2026: Delivery changed to Pearson VUE test centers or OnVUE online proctoring (previously Year-round via Pearson VUE test centers or OnVUE online proctoring).^[2]
• Oct 26, 2026: Testing window changed to Year-round (no fixed testing windows) (previously Administered year-round (no fixed windows)).^[1]
• Oct 26, 2026: Eligibility changed to Bachelor's degree + 2 years government financial management experience (experience not needed to sit the exams) (previously Bachelor's degree + 2 years U.S. government financial management experience; application fee $90 members ($36 students) / $120 nonmembers).^[1]
• Oct 26, 2026: Passing score changed to 500 on a 200–700 scaled score (previously 500 on a 200–700 scale).^[2]
• Oct 26, 2026: Renewal changed to Annual fee $40 members / $85 nonmembers, due March 31; 80 CPE hours per 2-year cycle (incl. 4 ethics) (previously 80 CPE hours every 2 years (incl. 4 ethics) + annual fee $40 members / $85 nonmembers, due March 31).^[3]

CGFM Pass Rate

The CGFM exam consists of three rigorous examinations that evaluate the candidate’s abilities in governmental accounting, auditing, financial reporting, internal controls, and budgeting at the federal, state, and local levels. The CGFM examinations are offered by the Association of Government Accountants (AGA). Success on these exams is an indicator that a candidate has the academic, practical, and ethical skills required for government financial management at the highest level. Practice with the free CGFM - Certified Government Financial Manager practice test on PracticeTestGeeks (7 questions with answer explanations).

The AGA CGFM exam is designed to be as objective as possible. Therefore, it’s important to familiarize yourself with the exam content outline and practice questions before you take the exam. It is also a good idea to network with other CGFM candidates to learn from their experiences.

The AGA CGFM exam is offered in both online and in-person formats. To take the exam, you must register with the AGA and pay the exam fee. Once you have registered, you will be able to locate a testing center and schedule your exam. Once you have passed all three CGFM examinations, you will receive your certification.

Free CGFM - Certified Government Financial Manager Study Tools

Interactive CGFM - Certified Government Financial Manager resources on PracticeTestGeeks, free to start:

• CGFM - Certified Government Financial Manager flashcards — review key terms and concepts card by card
• CGFM - Certified Government Financial Manager study guide — topic-by-topic overview of what the exam covers
• CGFM - Certified Government Financial Manager cheat sheet — one-page printable summary for last-minute review

According to AGA (Association of Government Accountants), Professional Certification Board, “CGFM examinations use a scale of 200-700, with 500 as the passing score.”^[2]

Worked examples: how to reason through CGFM questions

These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.

Example 1

Question: What does GASB's concept of 'interperiod equity' mean in the context of governmental accounting?

1. Equal treatment of all government departments
2. Ensuring current-year revenues are sufficient to pay current-year costs
3. Distributing funds equally among jurisdictions
4. Balancing the budget across multiple years

Answer: B. Ensuring current-year revenues are sufficient to pay current-year costs

Explanation:

The correct answer is that interperiod equity means current-year revenues are enough to pay current-year costs. The idea is about fairness across time: the taxpayers who receive a service this year should be the ones who pay for it, instead of pushing the cost onto future taxpayers.

Equal treatment of all government departments is wrong because interperiod equity is not about how departments are treated relative to each other. Distributing funds equally among jurisdictions is wrong for the same reason, since it is about geography, not time. Balancing the budget across multiple years is tempting because it mentions time, but it describes a planning approach, while interperiod equity is a test of whether a single year's revenues cover that year's costs.

Rule to remember: when you see equity with the prefix inter-period, think about which generation of taxpayers is paying.

Example 2

Question: What is an 'attestation engagement' under government auditing standards?

1. A commitment by auditors to find fraud
2. An engagement in which the auditor issues a report on subject matter or assertions made by another party
3. A contract between the government and an audit firm
4. An agreement to provide consulting services

Answer: B. An engagement in which the auditor issues a report on subject matter or assertions made by another party

Explanation:

The correct answer is an engagement in which the auditor issues a report on subject matter or assertions made by another party. In an attestation engagement the auditor does not produce the information; someone else does, and the auditor gives a conclusion about it. Examinations, reviews and agreed-upon procedures are the usual forms.

A commitment by auditors to find fraud is wrong because audit and attestation work is not a promise to detect all fraud. A contract between the government and an audit firm describes an engagement letter or agreement, not the type of work performed. An agreement to provide consulting services is wrong because consulting advises or helps management, while attestation reports on another party's subject matter or assertions.

Rule to remember: attestation means the auditor reports on someone else's assertion, and the key word is another party.

Example 3

Question: Encumbrances in governmental accounting represent:

1. Expenditures already paid
2. Commitments related to unperformed contracts for goods or services
3. Long-term liabilities for capital leases
4. Accrued payroll not yet paid

Answer: B. Commitments related to unperformed contracts for goods or services

Explanation:

The correct answer is commitments related to unperformed contracts for goods or services. An encumbrance is recorded when a purchase order or contract is issued. It reserves part of the appropriation so the money is not spent twice, even though nothing has been received or paid yet.

Expenditures already paid is wrong because once goods or services are received and paid for, the encumbrance is replaced by an actual expenditure. Long-term liabilities for capital leases is wrong because those are recognized as debt-type obligations, not as reservations of the current appropriation. Accrued payroll not yet paid is wrong because the work has already been performed, so it is a liability, not a commitment for something still to be delivered.

Rule to remember: an encumbrance is a promise to buy, an expenditure is a purchase that has happened.

How to use these practice tests

Start with the official AGA material so you know what each exam covers, then use the practice sets to find your weak spots. AGA has not given us a verified topic list for this page, so rely on its site for the exact content areas.

Begin with a mixed set such as CGFM to see where you stand. Then work topic by topic: governmental and fund accounting, financial reporting standards, federal budget process and execution, internal controls and government auditing, financial and cash management, and ethics and accountability.

After each set, read the explanation for every question you missed and for any you guessed right. Write down the rule behind the answer in your own words. Use CGFM MCQ and CGFM Trivia for quick review sessions, and the free question and answer set for a final run-through.

Since each exam is a separate sitting, plan them in an order that fits your work experience, and keep the 18-month window in mind. These sets are written by us and are not real exam questions, so treat them as practice, not a preview.

CGFM Courses

The CGFM exam is a comprehensive test that assesses a candidate’s competencies in the areas of governmental accounting, auditing, financial reporting, and internal controls at the federal, state, and local levels. The exam is administered by the Association of Government Accountants (AGA). It requires a bachelor’s degree and two years of experience.

The exam is a series of three rigorous examinations covering all aspects of government finance and management. The first exam consists of 115 questions and takes two hours and 15 minutes to complete. It is followed by a second exam, and then the third. The exams are computerized, and results are delivered immediately upon completion. Pass/fail results include a scaled score and specific scores for each content area.

CGFM CPE courses can be in a variety of formats, including Internet webcasts, televised presentations, DVD, CD-ROM, audio cassette tapes and videotapes. Determining whether a course qualifies for CGFM CPE is a matter of professional judgment, and the CGFM must make a clear connection between the subject and its role in government financial management.

CGFM Questions and Answers

A CGFM certification may be thought to be worthwhile for those considering a career in governmental financial management.

Depending on your existing knowledge and experience in government financial management, the time it takes to study for the CGFM exam can vary.

The CGFM Exam is very difficult, so effective exam preparation is crucial for success.

CGFM stands for Certified Government Financial Manager.

AGA’s professional certification, known as Certified Government Financial Manager® (CGFM®), attests to a person’s proficiency in governmental accounting, auditing, financial reporting, internal controls, and budgeting at the federal, state, and municipal levels.

You can pursue a career in government finance at the state, local, or federal levels with the aid of a CGFM certification.

Pros and Cons at a Glance

Sample CGFM - Certified Government Financial Manager Practice Questions

Try these questions from our free CGFM - Certified Government Financial Manager practice tests. The correct answer and an explanation follow each question.

1. What are the three CGFM examination areas?

   • A. Budgeting, Auditing, and Tax Policy
   • B. Governmental Environment; Governmental Accounting, Financial Reporting, and Budgeting; Governmental Financial Management and Control
   • C. Federal Finance, State Finance, and Local Finance
   • D. Accounting, Management, and Leadership

Answer: B. Governmental Environment; Governmental Accounting, Financial Reporting, and Budgeting; Governmental Financial Management and Control

The CGFM certification requires passing three exams: Exam 1 (Governmental Environment), Exam 2 (Governmental Accounting, Financial Reporting, and Budgeting), and Exam 3 (Governmental Financial Management and Control).

Answer: C. Three exams

The CGFM credential requires passing three separate examinations covering governmental environment, governmental accounting, and governmental financial management.

Answer: B. Association of Government Accountants (AGA)

The Certified Government Financial Manager (CGFM) designation is awarded by the Association of Government Accountants (AGA) to professionals who pass three exams and meet experience requirements.

Answer: B. Advancing government accountability professionals

The AGA's mission is to advance government accountability professionals by providing education, certification (including the CGFM), and leadership opportunities.

Take the full CGFM - Certified Government Financial Manager practice test

Sources & last verified

1. AGA (Association of Government Accountants), Professional Certification Board — number of questions, exam fee, validity, eligibility (official source). “Each examination has 115 questions.” Verified Oct 26, 2026.
2. AGA (Association of Government Accountants), Professional Certification Board — exam fee, passing score, retake fee, delivery (official source). “The examination fee of $150 per examination must be paid by credit card at the time of scheduling.” Verified Oct 26, 2026.
3. AGA (Association of Government Accountants), Professional Certification Board — renewal (official source). “Annual CGFM renewal payments are due by March 31. Current renewal fees are: $40 for AGA members or $85 for nonmembers.” Verified Oct 26, 2026.
4. pearsonvue.com — registration deadline (official source). “Appointments at Pearson test centers may be made up to one business day in advance.” Verified Oct 27, 2026 · source checked Oct 27, 2026.

How we verify: editorial & fact-checking policy. Report an error: contact us.