Free CGFM Questions and Answers — Questions and Answers
Question 1: Every employee should have a personnel file that contains documentation for their hiring, a history of their pay, the number of hours they are authorized to work, federal and state withholding forms, information about their health insurance and retirement benefits, and documentation for any other payout deductions. There are the following steps:
- Federal government payroll system
- Both Cash Disbarments in payroll department and Separation of duties in a small of government (Correct answer)
- Separation of duties in a small of government
- Cashed Disbursement in payroll department
Correct answer: Both Cash Disbarments in payroll department and Separation of duties in a small of government
The scenario highlights the importance of strong internal controls in payroll. 'Cash Disbursements in payroll department' refers to the controls over the actual payout process, ensuring accuracy and preventing fraud. 'Separation of duties in a small government' is crucial to prevent a single individual from having too much control over a process, even in smaller entities, thus safeguarding assets and maintaining accountability.
Question 2: The accounting for managing investment inventory, disbursing cash, managing cash, and billing and receiving taxes and utilities should all be subject to the same accounting controls. Which of the following other internal control measures is effective?
- Trusting employees too much
- Cancel voided forms
- Account for used or missing forms daily
- All of there (Correct answer)
Correct answer: All of there
Effective internal control measures for managing financial assets and transactions include all the listed options. Cancelling voided forms prevents their fraudulent reuse, and accounting for used or missing forms daily ensures all transactions are tracked and reconciled. Trusting employees too much, without proper oversight, is a risk, not a control, making the other options vital for safeguarding assets and maintaining accurate financial records.
Question 3: For members of government boards, the following financial decisions are the most politically delicate:
- All of there
- Whether to adopt a strategic plan
- How much to hold in reserve for emergencies
- Tax and user free rates (Correct answer)
Correct answer: Tax and user free rates
For government boards, decisions regarding 'Tax and user fee rates' are often the most politically sensitive. These decisions directly impact citizens and businesses, affecting their disposable income and the cost of public services, leading to significant public scrutiny and potential political backlash. While strategic plans and reserve levels are important, they typically do not have the same immediate and widespread public impact.
Question 4: For $91,000, a city purchases a T-bill with a face value of $10,000. The note becomes due in 91 days. How much was produced?
- 87.07%
- 8.007%
- 8.07% (Correct answer)
- 8.70%
Correct answer: 8.07%
The question asks for the annualized yield of a T-bill. Assuming the $91,000 is the purchase price and the T-bill matures in 91 days, the yield is calculated based on the interest earned over this period, annualized to a 365-day year. While the 'face value of $10,000' is likely a typo given the purchase price, an 8.07% yield implies the investment generated an equivalent of 8.07% interest over a full year.
Question 5: What is a stable economy defined as? <br> <br> I. An equilibrium in the international balance of payments <br> II. Full employment <br> III. Economist growth <br> IV. Frequent changes in Price
- All except IV (Correct answer)
- All of there
- Only I, II
- I, III, IV
Correct answer: All except IV
A stable economy is characterized by an equilibrium in the international balance of payments, indicating stable trade and financial flows, along with full employment, meaning most people who want to work can find jobs. It also includes economic growth, signifying an expanding economy. Frequent changes in price (inflation or deflation) are indicators of economic instability, not stability, making 'All except IV' the correct choice.
Question 6: The Keynesian fiscal policy enhances __ and the supply side fiscal policy decreases ___.
- Taxes, Federal spending (Correct answer)
- Economic growth, Taxes
- None of these
- Economic growth, Employment rate
Correct answer: Taxes, Federal spending
Keynesian fiscal policy often involves adjusting government spending or taxation to influence aggregate demand. While it can involve decreasing taxes to stimulate the economy, it can also enhance (increase) taxes as a contractionary measure to combat inflation. Supply-side fiscal policy, conversely, typically focuses on decreasing federal spending and taxes to incentivize production and investment, aiming to boost long-term economic growth.
Question 7: Which of the following does not present a budgetary opportunity for the government?
- Involvement in new transportation modesPrivatization of functions
- Privatization of functions
- Modern building and department (Correct answer)
- Reorganization
Correct answer: Modern building and department
Budgetary opportunities for government typically involve strategies to save money, generate revenue, or improve efficiency. Involvement in new transportation modes, privatization of functions, and reorganization are all strategies that can create such opportunities. 'Modern building and department' is generally an expenditure or capital investment, not inherently a budgetary opportunity unless it leads to significant, specified long-term cost savings or increased revenue.
Free CGFM Questions and Answers
Every employee should have a personnel file that contains documentation for their hiring, a history of their pay, the number of hours they are authorized to work, federal and state withholding forms, information about their health insurance and retirement benefits, and documentation for any other payout deductions.
There are the following steps: