CGFM Flashcards

Which GASB statement established the requirements for government-wide financial statements?

Answer: GASB Statement No. 34

GASB Statement No. 34 fundamentally changed governmental financial reporting by requiring government-wide statements alongside fund statements.

Under federal appropriations law, the 'bona fide needs rule' states that:

Answer: Funds may only be obligated for needs arising during the period of availability

The bona fide needs rule requires that appropriations only be obligated for genuine needs that exist during the appropriation's period of availability.

When a government issues general obligation bonds, the debt is secured by:

Answer: The full faith and credit and taxing power of the government

General obligation bonds are backed by the issuing government's full faith and credit, including its unlimited taxing authority.

A performance measure that tracks the number of pothole repairs completed per crew per day is an example of a:

Answer: Efficiency measure

Efficiency measures assess the ratio of outputs produced per unit of input, such as work completed per crew per day.

Under GAAP for state and local governments, which basis of accounting is used for governmental funds?

Answer: Modified accrual basis

Governmental funds use the modified accrual basis, recognizing revenues when measurable and available, and expenditures when the liability is incurred.

The Government Accountability Office (GAO) reports directly to:

Answer: Congress

The GAO is an independent, nonpartisan agency that works for Congress, supporting legislative oversight of the executive branch.

An agency that spends more than its appropriation has most likely violated which law?

Answer: Antideficiency Act

The Antideficiency Act prohibits federal agencies from obligating or expending funds in excess of the amount appropriated by Congress.