CGFO Revenue Administration 3

Question 1

A government finance officer is reviewing the revenue forecast for the upcoming budget year. Which forecasting technique uses historical revenue data and statistical regression to project future collections?

Accepted Answer

Trend analysis / econometric modeling

Answer

Econometric/trend analysis applies regression and statistical methods to historical data to project future revenue streams objectively.

Question 2

Impact fees charged to developers for new residential construction are legally required to:

Accepted Answer

Be proportional to the infrastructure demand created by the development

Answer

Impact fees must be roughly proportional to the burden a new development places on public infrastructure to withstand legal challenges.

Question 3

Which statement best describes the difference between a license fee and a regulatory fee in government revenue?

Accepted Answer

License fees are for the privilege of conducting an activity; regulatory fees recover the cost of oversight

Answer

A license fee grants permission for an activity, while a regulatory fee is designed to recoup the government's cost of regulating that activity.

Question 4

A county government has an agreement where the state collects the county's sales tax and remits it monthly. This arrangement is called:

Accepted Answer

Piggyback tax or tax sharing agreement

Answer

A piggyback tax allows local governments to add their rate to the state rate, with the state collecting and remitting the combined revenue.

Question 5

When a government issues a Revenue Anticipation Note (RAN), the repayment source is:

Accepted Answer

Specific anticipated revenues not yet collected

Answer

RANs are short-term borrowings backed by and repaid from identified revenues expected to be collected later in the fiscal year.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Revenue Administration 3