CGFM Trivia 2 — Questions and Answers
Question 1: Which federal law established the Chief Financial Officers (CFO) Act of 1990?
- Public Law 101-576 (Correct answer)
- Public Law 104-208
- Public Law 97-258
- Public Law 99-177
Correct answer: Public Law 101-576
The CFO Act of 1990 was enacted as Public Law 101-576, requiring major federal agencies to appoint CFOs and produce audited financial statements.
Question 2: What does the acronym 'CAFR' stand for in governmental accounting?
- Certified Annual Financial Report
- Comprehensive Annual Financial Report (Correct answer)
- Combined Accounting and Financial Review
- Consolidated Annual Fiscal Report
Correct answer: Comprehensive Annual Financial Report
CAFR stands for Comprehensive Annual Financial Report, the complete set of financial statements prepared by a state or local government.
Question 3: The Government Accountability Office (GAO) is headed by whom?
- The Secretary of the Treasury
- The Director of OMB
- The Comptroller General of the United States (Correct answer)
- The Inspector General
Correct answer: The Comptroller General of the United States
The GAO is led by the Comptroller General of the United States, who is appointed by the President for a 15-year, non-renewable term.
Question 4: Which governmental accounting standard addresses pension accounting for state and local governments?
- GASB Statement No. 34
- GASB Statement No. 54
- GASB Statement No. 68 (Correct answer)
- GASB Statement No. 77
Correct answer: GASB Statement No. 68
GASB Statement No. 68 established accounting and financial reporting requirements for pensions provided by state and local governmental employers.
Question 5: What is the primary mission of the Association of Government Accountants (AGA)?
- Regulating federal spending
- Advancing government accountability professionals (Correct answer)
- Auditing federal agencies
- Setting tax policy for municipalities
Correct answer: Advancing government accountability professionals
The AGA's mission is to advance government accountability professionals by providing education, certification (including the CGFM), and leadership opportunities.
Question 6: How many examinations make up the full CGFM certification?
- One comprehensive exam
- Two exams
- Three exams (Correct answer)
- Four exams
Correct answer: Three exams
The CGFM credential requires passing three separate examinations covering governmental environment, governmental accounting, and governmental financial management.
Question 7: Which document serves as the 'bible' of federal accounting standards, issued by FASAB?
- GAAFR
- GAAP Hierarchy for Federal Entities
- FASAB Handbook (Correct answer)
- OMB Circular A-123
Correct answer: FASAB Handbook
The FASAB Handbook consolidates all Federal Accounting Standards Advisory Board pronouncements and serves as the primary reference for federal accounting standards.
CGFM Trivia 2
Which federal law established the Chief Financial Officers (CFO) Act of 1990?