FREE CGFM MCQ Questions and Answers

Question 1

The accrual basis of accounting and the economic resources measurement focus are used by proprietary and fiduciary funds.
Like private sector companies, proprietary funds concentrate on changes in economic resources and pose the following questions:

Accepted Answer

What transactions and events, as determined by changes in net assets, increased or diminished the fund's overall financial resources during the reporting period?

Answer

What actions and occurrences, as determined by changes in net assets like revenues, lowered the fund's overall economic resources throughout the reporting period?

Answer

What transactions and events, as shown by changes in net assets like revenues, have boosted the fund's overall financial resources throughout the reporting period?

Answer

None of these

Question 2

Interfund transfers of assets (such as money or goods) without repayment and _____________ are examples of non-reciprocal interfund transactions.

Accepted Answer

Interfund reimbursement

Answer

Both Interfund reimbursement and Interfund exchange

Answer

Interfund Exchange

Answer

Cost Allocation

Question 3

Due to the Governmental Funds' present emphasis on financial measurement, they do not report:

Accepted Answer

Either Capital Assets or Long-term debt

Answer

Capital Assets

Answer

Long-term debt

Answer

Cash equivalents

Question 4

A modified depreciation strategy is applied in government organizations. This updated method does not record depreciation costs, but it capitalizes upgrades and additions and spends maintenance costs. The modified strategy's reasoning is as follows:

Accepted Answer

That buildings have an indefinite useful life, making depreciated charges unnecessary.

Answer

All of these

Answer

Changes in fiduciary assets

Answer

Changes in proprietary fund statement of revenues, expenses, and charges in fund assets.

Question 5

Every year, the city of Mudville consumes 1600 oil filters. The order placement fee is $5.00. The price per unit is $3.50. The carrying cost per unit is &0.70(0.20x$3.50), and the carrying cost as a percentage is 20%. Additionally, each order requires a lead time of three working days, and there are 255 working days in a year. Where does the reordering begin?

Accepted Answer

19

Answer

18

Answer

17

Answer

15

Question 6

Governments may also report on an interim basis in addition to financial interim reports:

Accepted Answer

The status of construction projects and cash flows

Answer

All of there

Answer

The growth status of GDP

Answer

The capital investment by foreign counties

Question 7

All unrestricted contributions, gifts, and other sources of money that may be utilized for any purpose are collectively referred to as funds, right?

Accepted Answer

All of there

Answer

General funds

Answer

Current restricted funds

Answer

Current funds