CGFM Governmental Financial Reporting Standards 2

Question 1

Which component of a state or local government's Annual Comprehensive Financial Report (ACFR) contains the independent auditor's report?

Accepted Answer

Financial section

Answer

The financial section of the ACFR contains the independent auditor's report, the MD&A, basic financial statements, notes, and required supplementary information.

Question 2

What is 'fiscal transparency' as it relates to governmental financial reporting?

Accepted Answer

Providing clear, complete, and accessible financial information to stakeholders

Answer

Fiscal transparency means providing clear, complete, and accessible financial information so citizens and stakeholders can hold governments accountable.

Question 3

Which GASB statement addresses pension reporting for state and local government employers?

Accepted Answer

GASB 68

Answer

GASB Statement No. 68 established accounting and financial reporting requirements for pensions provided through defined benefit plans by state and local government employers.

Question 4

In governmental accounting, what is a 'fiduciary fund'?

Accepted Answer

A fund used to account for resources held in trust or as an agent for others

Answer

Fiduciary funds account for resources held by the government in a trustee or agent capacity for others, such as pension trust funds and agency funds.

Question 5

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

Accepted Answer

Ensuring current-year revenues are sufficient to pay current-year costs

Answer

Interperiod equity means today's taxpayers are paying for today's services, not shifting the burden to future taxpayers.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM Governmental Financial Reporting Standards 2