Practice Test GeeksCGFM - Certified Government Financial Manager Practice Test
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CGFM Flashcards

7 cards from real CGFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which of the following best describes 'inter-period equity' in governmental financial reporting?

    Answer: Current-year revenues sufficient to pay for current-year services

    Inter-period equity means that current taxpayers pay for services they receive today, rather than shifting costs to future taxpayers.

  2. In a Cost-Benefit Analysis (CBA), which discount rate is typically recommended by OMB Circular A-94 for federal regulatory analysis?

    Answer: 7%

    OMB Circular A-94 recommends a 7% real discount rate for regulatory cost-benefit analyses, representing the opportunity cost of capital.

  3. A state government's Statement of Net Position must classify assets and liabilities as current and noncurrent under which reporting model?

    Answer: Both government-wide and proprietary fund statements

    Both the government-wide statements and proprietary fund statements present assets and liabilities using the economic resources measurement focus, requiring current/noncurrent classification.

  4. Which activity is part of the federal budget 'execution' phase?

    Answer: Apportioning funds by OMB after appropriations are enacted

    Budget execution begins after appropriations are enacted; OMB apportions funds to agencies to control the rate of spending.

  5. Which type of governmental audit opinion indicates that financial statements are presented fairly in all material respects?

    Answer: Unmodified opinion

    An unmodified (clean) opinion means the auditor found the financial statements conform to GAAP with no material misstatements.

  6. Under the Uniform Guidance (2 CFR Part 200), 'administrative costs' of federal grants that benefit multiple programs are classified as:

    Answer: Indirect costs

    Indirect costs (overhead) benefit multiple programs and cannot be easily assigned to a single award without undue effort.

  7. Which financial ratio measures a government's ability to meet short-term obligations using liquid assets?

    Answer: Current ratio

    The current ratio (current assets ÷ current liabilities) assesses short-term liquidity and a government's ability to pay near-term obligations.

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Sources & references

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  1. pearsonvue.com — Registration deadline · verified Oct 2026
  2. agacgfm.org — Renewal, eligibility, fees, exam format, test dates, score validity, test delivery, passing score, retake fee, score release · verified Oct 2026