CGFM MCQ 2

Question 1

Under the Antideficiency Act, a federal agency that obligates funds in excess of its appropriation must:

Accepted Answer

Report the violation to the President and Congress

Answer

The Antideficiency Act requires agencies to report violations to the President and Congress and take corrective action.

Question 2

Which financial statement is unique to state and local governments and presents the fiscal accountability of governmental activities?

Accepted Answer

Statement of Revenues, Expenditures, and Changes in Fund Balances

Answer

The Statement of Revenues, Expenditures, and Changes in Fund Balances is a governmental fund statement that shows fiscal accountability.

Question 3

The primary purpose of the Single Audit Act is to:

Accepted Answer

Provide for audits of non-federal entities expending federal awards

Answer

The Single Audit Act requires non-federal entities (states, local governments, nonprofits) expending $750,000+ in federal awards to undergo a single organization-wide audit.

Question 4

In government budgeting, an 'allotment' is best described as:

Accepted Answer

A subdivision of an apportionment used by an agency to control expenditures

Answer

An allotment is an agency's internal subdivision of an apportionment, used to further control the rate of spending within the agency.

Question 5

Which GASB concept requires governments to report infrastructure assets using the modified approach as an alternative to depreciation?

Accepted Answer

The infrastructure preservation system under GASB 34

Answer

GASB 34 allows governments to use the modified approach for eligible infrastructure assets if they maintain an asset management system and preserve assets at a condition level.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM MCQ 2