CGFM CGFM 2

Question 1

Under GASB standards, which fund type uses the economic resources measurement focus?

Accepted Answer

Proprietary funds

Answer

Proprietary funds use the economic resources measurement focus and accrual basis of accounting, similar to business enterprises.

Question 2

Which of the following is NOT a component of the federal government's Comprehensive Annual Financial Report (CAFR)?

Accepted Answer

Program budget justification

Answer

Program budget justifications are budget documents submitted to Congress, not components of a CAFR.

Question 3

The Single Audit Act requires audits of federal award recipients that expend at least how much in federal awards in a fiscal year?

Accepted Answer

$750,000

Answer

The 2016 OMB threshold requires a single audit when federal expenditures reach $750,000 or more in a fiscal year.

Question 4

A government agency estimates it will receive $2 million in tax revenue but only $1.8 million is actually collected. The $200,000 variance is best described as:

Accepted Answer

A budget shortfall

Answer

A budget shortfall occurs when actual revenues fall below estimated revenues, resulting in a negative variance.

Question 5

Which internal control component in the COSO framework addresses the organization's response to identified risks?

Accepted Answer

Control activities

Answer

Control activities are the policies and procedures that help ensure management's risk responses are carried out effectively.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM CGFM 2