CGFM CGFM 3

Question 1

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

Accepted Answer

GASB Statement No. 34

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

The full faith and credit and taxing power of the government

Answer

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

Question 4

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

Accepted Answer

Efficiency measure

Answer

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

Question 5

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

Accepted Answer

Modified accrual basis

Answer

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

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM CGFM 3