CGFM EXAM 1 STUDY
GUIDE QUESTIONS AND
CORRECT ANSWERS
GRADED A+2025-2026
AGA - ANS-Association of Government Accountants
CEAR - ANS-Certificate of Excellence in Accountability Reporting
CFO - ANS-Chief Financial Officer
CGFM - ANS-Certified Government Financial Manager
ERP - ANS-Enterprise Resource Planning
FASAB - ANS-Federal Accounting Standards Advisory Board
FASB - ANS-Financial Accounting Standards Board
FSIO - ANS-Financial Systems Integration Office (within GSA)
GAAP - ANS-Generally Accepted Accounting Principles
GAO - ANS-Government Accountibility Office
GASB - ANS-Government Accounting Standards Board
,GPRA - ANS-Government Performance and Results Act
OMB - ANS-Office of Management and Budget
PAR - ANS-Performance and Accountability Report
SEA - ANS-Service Efforts and Accomplishments
Accountability - ANS-Principle that in a democracy, government operates at the
consent of the people. Therefore it must answer to the people for its actions and
results, including the taking and using of the people's resources.
Allotments - ANS-In the federal government, an agency's distribution of apportioned
budgetary authority to various components within the agency. After the executive
agency receives its apportionment, it allots budgetary authority to specific components
within the agency.
Anti-Deficiency Act - ANS-At the federal level, a law stating that officials can be fined
and/or jailed if they obligate the government to spend funds beyond the legally
authorized purpose, time, or amount.
Apportionmnets - ANS-Definitions may vary at different levels of government. At the
federal level, OMB's approval to use a protion of the legislatively approved budgetary
authority.
Appropriated Budget - ANS-Budget that has been passed by the legistlative branch; has
effect of law.
Appropriation - ANS-A legistlative enactment (law, statute or ordinance) that creates
spending authority; the legal authority to incur expenses and spend money.
Attestation engagements - ANS-Engagement primarily concerned with examining or
performing agreed upon procedures on a subject matter, or an assertion about a
,subject matter, and reporting on the results. The subject matter may be financial or
nonfinancial and can be part of a financial audit or performance audit. Possible
subjects include reporting on an entity's internal controls, compliance with law or
performance measures.
Authorization - ANS-Legislative enactment that approves programs; prescribes what
activities an agency may pursue if funding is available.
Block grants - ANS-Intergovernmental provision of resources for broadly defined
purposes. Contrasts with category grants.
Capital Budget - ANS-Forecasts and controls spending for "big ticket" items that are
acquired and used over a period of several years, such as construction projects and
major equipment purchases. Used at state and local levels.
Capital lease - ANS-Capital leases is a lease fo real property that meets defined criteria
requiring the government to report the property as it purchased long term debt
Cash-flow budget - ANS-Forecasts the timing as well as amount of cash flows for the
year. Used to project required cash levels.
Category grants - ANS-Intergovernmental provision of resources to be used for
activities in a specific category of purpose. May be further classified as discretionary
grants or formula grants. Contrasts with block grants.
Central Management Agencies - ANS-Government agencies that provide central
management services to other components. Example would be a state government hr
office (that serves all state agencies) or the OMB at the federal level.
CEAR - ANS-An AGA program that helps federal agencies and their components to
produce effective, high-quality Performance and Accountability Reports
Certificate of Participation - ANS-Form of shared government financing. In a typical
form, several financial institutions share in a loan arrangement with a government
entity.
, Charter - ANS-Local government version of a constitution. States may provide for the
establishment of local governments through charters
checks and balances - ANS-Process by which one branch of government (legislative,
executiv or judicial) can constrain actions of the other branches. Flows from separation
of powers.
CFO Act - ANS-1990 law that, among other provisions, requires the federal
government's major executive branch agencies to have a CFO. Prescribes duties and
reporting requirements, and requires audited financial statements
Commissions - ANS-Government components established by law, statuted or
ordinance. May be permanent or temporary. Because they are established by law, may
have greater autonomy and authority than government components that are
administratively established. Ex. Federal Communication Commision
Components - ANS-Organized units of government such as agencies, offices and
departments. Found in all branches of government at all levels.
Conflict of interest - ANS-Arises when one has personal interest in matters relating to
official duties or activities. Such conflicts can destroy objectivity and independence
and prevent the exercise of due care
Consumption Taxes - ANS-Broad category of tax that includes sales, use, excise and
value-added taxes
Continuity of Operations - ANS-Refers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or
disruptions.
Covenant (bond) - ANS-Legal requirements pertaining to a specific bond issue.
Typically define the maturity date, revenue stream that will be used to repay the debt,
interest rate and repayment schedule. May require a sinking fund and may specify
conditions that must be met before new debt can be issued.
GUIDE QUESTIONS AND
CORRECT ANSWERS
GRADED A+2025-2026
AGA - ANS-Association of Government Accountants
CEAR - ANS-Certificate of Excellence in Accountability Reporting
CFO - ANS-Chief Financial Officer
CGFM - ANS-Certified Government Financial Manager
ERP - ANS-Enterprise Resource Planning
FASAB - ANS-Federal Accounting Standards Advisory Board
FASB - ANS-Financial Accounting Standards Board
FSIO - ANS-Financial Systems Integration Office (within GSA)
GAAP - ANS-Generally Accepted Accounting Principles
GAO - ANS-Government Accountibility Office
GASB - ANS-Government Accounting Standards Board
,GPRA - ANS-Government Performance and Results Act
OMB - ANS-Office of Management and Budget
PAR - ANS-Performance and Accountability Report
SEA - ANS-Service Efforts and Accomplishments
Accountability - ANS-Principle that in a democracy, government operates at the
consent of the people. Therefore it must answer to the people for its actions and
results, including the taking and using of the people's resources.
Allotments - ANS-In the federal government, an agency's distribution of apportioned
budgetary authority to various components within the agency. After the executive
agency receives its apportionment, it allots budgetary authority to specific components
within the agency.
Anti-Deficiency Act - ANS-At the federal level, a law stating that officials can be fined
and/or jailed if they obligate the government to spend funds beyond the legally
authorized purpose, time, or amount.
Apportionmnets - ANS-Definitions may vary at different levels of government. At the
federal level, OMB's approval to use a protion of the legislatively approved budgetary
authority.
Appropriated Budget - ANS-Budget that has been passed by the legistlative branch; has
effect of law.
Appropriation - ANS-A legistlative enactment (law, statute or ordinance) that creates
spending authority; the legal authority to incur expenses and spend money.
Attestation engagements - ANS-Engagement primarily concerned with examining or
performing agreed upon procedures on a subject matter, or an assertion about a
,subject matter, and reporting on the results. The subject matter may be financial or
nonfinancial and can be part of a financial audit or performance audit. Possible
subjects include reporting on an entity's internal controls, compliance with law or
performance measures.
Authorization - ANS-Legislative enactment that approves programs; prescribes what
activities an agency may pursue if funding is available.
Block grants - ANS-Intergovernmental provision of resources for broadly defined
purposes. Contrasts with category grants.
Capital Budget - ANS-Forecasts and controls spending for "big ticket" items that are
acquired and used over a period of several years, such as construction projects and
major equipment purchases. Used at state and local levels.
Capital lease - ANS-Capital leases is a lease fo real property that meets defined criteria
requiring the government to report the property as it purchased long term debt
Cash-flow budget - ANS-Forecasts the timing as well as amount of cash flows for the
year. Used to project required cash levels.
Category grants - ANS-Intergovernmental provision of resources to be used for
activities in a specific category of purpose. May be further classified as discretionary
grants or formula grants. Contrasts with block grants.
Central Management Agencies - ANS-Government agencies that provide central
management services to other components. Example would be a state government hr
office (that serves all state agencies) or the OMB at the federal level.
CEAR - ANS-An AGA program that helps federal agencies and their components to
produce effective, high-quality Performance and Accountability Reports
Certificate of Participation - ANS-Form of shared government financing. In a typical
form, several financial institutions share in a loan arrangement with a government
entity.
, Charter - ANS-Local government version of a constitution. States may provide for the
establishment of local governments through charters
checks and balances - ANS-Process by which one branch of government (legislative,
executiv or judicial) can constrain actions of the other branches. Flows from separation
of powers.
CFO Act - ANS-1990 law that, among other provisions, requires the federal
government's major executive branch agencies to have a CFO. Prescribes duties and
reporting requirements, and requires audited financial statements
Commissions - ANS-Government components established by law, statuted or
ordinance. May be permanent or temporary. Because they are established by law, may
have greater autonomy and authority than government components that are
administratively established. Ex. Federal Communication Commision
Components - ANS-Organized units of government such as agencies, offices and
departments. Found in all branches of government at all levels.
Conflict of interest - ANS-Arises when one has personal interest in matters relating to
official duties or activities. Such conflicts can destroy objectivity and independence
and prevent the exercise of due care
Consumption Taxes - ANS-Broad category of tax that includes sales, use, excise and
value-added taxes
Continuity of Operations - ANS-Refers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or
disruptions.
Covenant (bond) - ANS-Legal requirements pertaining to a specific bond issue.
Typically define the maturity date, revenue stream that will be used to repay the debt,
interest rate and repayment schedule. May require a sinking fund and may specify
conditions that must be met before new debt can be issued.
