CGFM CGFM 5

Question 1

Under GASB 68, state and local government employers must report their proportionate share of a cost-sharing pension plan's:

Accepted Answer

Net pension liability on the face of the financial statements

Answer

GASB 68 requires employers to recognize their proportionate share of the collective net pension liability directly on the Statement of Net Position.

Question 2

Which internal audit standard requires that internal auditors be free from conditions that threaten their ability to carry out their responsibilities objectively?

Accepted Answer

The standard of independence

Answer

The IIA standard on independence requires that internal audit functions be free from organizational and individual impairments that compromise objectivity.

Question 3

A government's 'fund balance' in a governmental fund represents:

Accepted Answer

The difference between assets/deferred outflows and liabilities/deferred inflows

Answer

Fund balance equals assets plus deferred outflows of resources minus liabilities minus deferred inflows of resources in governmental fund statements.

Question 4

A federal agency's 'obligation' under budget law is best defined as:

Accepted Answer

A legally binding commitment that will require payment

Answer

An obligation is a binding legal commitment — such as a signed contract — that will result in outlays immediately or in the future.

Question 5

Which approach to governmental performance measurement compares program outcomes to pre-established targets or benchmarks?

Accepted Answer

Results-based accountability

Answer

Results-based accountability (RBA) focuses on measuring and reporting actual outcomes against predetermined performance targets.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM CGFM 5