CGFM Government Financial Management and Cash Management

Question 1

Which federal law requires agencies to collect receivables promptly and deposit collections into the Treasury as quickly as possible?

Accepted Answer

The Cash Management Improvement Act of 1990

Answer

The Debt Collection Improvement Act of 1996

Answer

The Federal Claims Collection Act

Answer

The Prompt Payment Act

Question 2

What is the primary purpose of the Prompt Payment Act in federal government?

Accepted Answer

Requiring federal agencies to pay vendors by specified due dates or pay interest penalties

Answer

Requiring vendors to submit invoices within 30 days

Answer

Requiring immediate payment of all tax refunds

Answer

Requiring same-day processing of payroll

Question 3

What is 'cash management' in government financial management?

Accepted Answer

Optimizing the timing of cash inflows and outflows to minimize borrowing costs and maximize investment income

Answer

Managing currency in government vaults

Answer

Balancing the government's checkbook monthly

Answer

Issuing government bonds to fund operations

Question 4

Which U.S. Treasury system serves as the federal government's central accounting system for recording receipts and disbursements?

Accepted Answer

CARS (Central Accounting Reporting System)

Answer

GFRS (Government Financial Reporting System)

Answer

IPAC (Intra-governmental Payment and Collection)

Answer

SAM (System for Award Management)

Question 5

What is an 'Intra-governmental transaction' in federal financial management?

Accepted Answer

A financial transaction between two federal agencies where one acts as buyer and the other as seller

Answer

A transaction between federal agencies within the same department

Answer

A transfer of funds from federal to state governments

Answer

A payment between federal contractors

Question 6

What does 'working capital' mean in the context of government financial management?

Accepted Answer

The difference between current assets and current liabilities, indicating short-term financial health

Answer

Funds available for capital construction projects

Answer

Congressional appropriations for operating expenses

Answer

Revolving fund balances available for operations