GAC Cheat Sheet 2026

The 30 highest-yield GAC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the hierarchy of controls in GAC risk management? → Elimination, substitution, engineering, administrative, then PPE
2. Which document formally establishes the legal relationship, terms, and conditions between a federal awarding agency and a grant recipient? → Federal Award Agreement
3. How does segregation of duties improve internal controls in government? → By reducing the risk of errors and fraud.
4. What are consequences of non-compliance in GAC practice? → Fines, license revocation, legal liability, and reputation damage
5. What is active listening in GAC practice? → Fully concentrating on the speaker and providing thoughtful feedback
6. What does ROI measure in GAC financial analysis? → Gain or loss relative to the investment amount
7. Why is data visualization important in GAC reporting? → It makes complex patterns easier to understand and communicate
8. What is cash flow management in GAC practice? → Optimizing the timing of money coming in and going out
9. The concept of 'fund' in governmental accounting primarily serves to: → Ensure fiscal and legal compliance by segregating resources for specific purposes
10. Why is regular review important in GAC risk management? → Conditions change and new risks emerge requiring updates
11. Why is documentation critical in GAC compliance? → It provides evidence of compliance and defensible records
12. What is the first step in GAC risk assessment? → Identifying potential hazards and threats
13. How do regulations differ from standards in GAC practice? → Regulations are legally binding; standards are typically voluntary
14. How do regulations differ from standards in GAC practice? → Regulations are legally binding; standards are typically voluntary
15. What is the significance of a government’s internal audit function? → To review and improve government operations and financial controls.
16. A revenue bond issued by a municipal water utility would typically be repaid from: → User charges collected from water customers
17. What role does feedback play in GAC professional development? → Identifying strengths and improvement areas to guide growth
18. What is the significance of the Comprehensive Annual Financial Report (CAFR) in governmental accounting? → It is a required public document that helps ensure accountability and transparency.
19. What is financial forecasting in GAC practice? → Predicting future conditions based on historical data and trends
20. What role does transparency play in governmental financial reporting? → It is crucial for public trust and accountability.
21. What is the primary goal of regulatory compliance in GAC practice? → Ensuring adherence to laws and standards governing professional practice
22. What is budget variance analysis in GAC financial management? → Comparing actual spending against budgeted amounts to explain differences
23. What is cash flow management in GAC practice? → Optimizing the timing of money coming in and going out
24. What does the Governmental Funds Financial Statements section of the CAFR report on? → The specific funds allocated for public services.
25. What is trend analysis in GAC reporting? → Examining data over time to identify patterns and changes
26. What is stakeholder mapping in GAC practice? → Identifying parties with project interest and assessing their influence
27. How do governments typically control expenditures during the budgeting process? → By setting expenditure limits and tracking spending.
28. Which of the following is an example of a governmental fund type? → Both a and c.
29. What is financial forecasting in GAC practice? → Predicting future conditions based on historical data and trends
30. Which of the following is an example of a preventative control in government accounting? → Background checks on government employees.