CGFM MCQ 5

Question 1

The Government Performance and Results Act (GPRA) Modernization Act of 2010 requires federal agencies to publish strategic plans covering a period of at least:

Accepted Answer

Four years

Answer

The GPRA Modernization Act requires agencies to publish strategic plans covering a four-year period aligned with the presidential term, updated every four years.

Question 2

Under GASB standards, a government's enterprise fund reports a transaction where it sells water to the General Fund at standard rates. This is classified as a:

Accepted Answer

Quasi-external transaction reported as revenues and expenditures/expenses

Answer

Quasi-external transactions occur when one fund provides goods or services to another fund at arm's-length prices and are reported as revenues in the providing fund and expenditures/expenses in the receiving fund.

Question 3

A federal agency obligates funds in October for a contract to be completed in March of the next fiscal year. The obligation should be recorded:

Accepted Answer

In October when the contract is signed

Answer

Federal accounting records obligations when the government enters into a binding commitment (e.g., signs a contract), regardless of when work is performed or payment is made.

Question 4

Which FASAB standard establishes the hierarchy of accounting standards for federal entities?

Accepted Answer

SFFAS No. 34

Answer

SFFAS No. 34 establishes the FASAB hierarchy, identifying the authoritative sources of generally accepted accounting principles for federal entities.

Question 5

Under the Improper Payments Elimination and Recovery Act (IPERA), an agency's program is considered 'high-priority' if its improper payment rate exceeds:

Accepted Answer

2.5% with payments over $10 million, or total improper payments over $100 million

Answer

A program is deemed high-priority when its improper payment rate exceeds 2.5% of total program payments AND payments exceed $10 million, or total improper payments exceed $100 million regardless of rate.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM MCQ 5