CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Major Purpose of Government -
correct answer ✅to address public policy issues and provide
services effectively
What does the budget do? -
correct answer ✅Establishes spending authorizations, outlines
programs and services to be provided, and defines the sources of
revenues that will be used to fund them.
Anti-Deficiency Act -
correct answer ✅Prohibits federal agencies from obligating or
expending federal funds in advance or in excess of an appropriation
enacted in law.
Purpose of Financial Reports -
correct answer ✅* show how much money was raised
* how it was spent
* and whether the spending was compliant to the budget
,CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
10th Amendment of the Constitution -
correct answer ✅The powers not delegated to the United States
by the Constitution, nor prohibited by it to the States, are reserved
to the States respectively, or to the people. (Establishes levels of
government)
Compare and contrast stakeholders of government vs. private
company -
correct answer ✅In summary, stockholders, investors, and
creditors of a commercial entity are interested in the profit to be
generated by a company. Taxpayers, investors, service recipients,
and creditors of a government are interested in the delivery of
services and the ability to meet future obligations.
Accountability -
correct answer ✅the cornerstone of financial reporting. Public
officials must be accountable to the citizens to justify the raising of
public resources and the purposes for which they are used.
,CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Legal Accountability -
correct answer ✅The need to comply with various laws, rules, and
regulations.
Performance Accountability -
correct answer ✅ensuring that governments act in an efficient,
effective or economic manner. Ensuring that goals and objectives
are met for programs.
Fiscal Accountability -
correct answer ✅associated with the raising of resources and the
allocation of those resources to accomplish objectives. Accountable
for how resources are raised and how they are used.
Operational Accountability -
correct answer ✅the stewardship of public resources-- this is
often evaluated through performance measures and performance
reporting.
, CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Interperiod Equity -
correct answer ✅A concept that is based on the notion that goods
and services received by current-year taxpayers should not be a
burden on taxpayers in future years. The GASB believes that a
major reason for financial reporting by state and local governments
is to enable users to assess whether future-year taxpayers will be
required to pay for services received by current-year taxpayers.
How is interperiod equity enforced at the state and local level? -
correct answer ✅Balanced budgets-- unfortunately the definitions
of revenue allow government entities to borrow either short or
long term funds for current operations.
What level of government has not been subjected to balanced
budget laws? -
correct answer ✅The Federal Government. Debt ceilings are
required to be elevated through action of the president and
Congress.
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Major Purpose of Government -
correct answer ✅to address public policy issues and provide
services effectively
What does the budget do? -
correct answer ✅Establishes spending authorizations, outlines
programs and services to be provided, and defines the sources of
revenues that will be used to fund them.
Anti-Deficiency Act -
correct answer ✅Prohibits federal agencies from obligating or
expending federal funds in advance or in excess of an appropriation
enacted in law.
Purpose of Financial Reports -
correct answer ✅* show how much money was raised
* how it was spent
* and whether the spending was compliant to the budget
,CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
10th Amendment of the Constitution -
correct answer ✅The powers not delegated to the United States
by the Constitution, nor prohibited by it to the States, are reserved
to the States respectively, or to the people. (Establishes levels of
government)
Compare and contrast stakeholders of government vs. private
company -
correct answer ✅In summary, stockholders, investors, and
creditors of a commercial entity are interested in the profit to be
generated by a company. Taxpayers, investors, service recipients,
and creditors of a government are interested in the delivery of
services and the ability to meet future obligations.
Accountability -
correct answer ✅the cornerstone of financial reporting. Public
officials must be accountable to the citizens to justify the raising of
public resources and the purposes for which they are used.
,CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Legal Accountability -
correct answer ✅The need to comply with various laws, rules, and
regulations.
Performance Accountability -
correct answer ✅ensuring that governments act in an efficient,
effective or economic manner. Ensuring that goals and objectives
are met for programs.
Fiscal Accountability -
correct answer ✅associated with the raising of resources and the
allocation of those resources to accomplish objectives. Accountable
for how resources are raised and how they are used.
Operational Accountability -
correct answer ✅the stewardship of public resources-- this is
often evaluated through performance measures and performance
reporting.
, CGFM Exam 2 Review- Section 1
(General Discussion of
Accounting, Financial Reporting,
and Budgeting in Government)
Questions & Answers (Grade
A+)
Interperiod Equity -
correct answer ✅A concept that is based on the notion that goods
and services received by current-year taxpayers should not be a
burden on taxpayers in future years. The GASB believes that a
major reason for financial reporting by state and local governments
is to enable users to assess whether future-year taxpayers will be
required to pay for services received by current-year taxpayers.
How is interperiod equity enforced at the state and local level? -
correct answer ✅Balanced budgets-- unfortunately the definitions
of revenue allow government entities to borrow either short or
long term funds for current operations.
What level of government has not been subjected to balanced
budget laws? -
correct answer ✅The Federal Government. Debt ceilings are
required to be elevated through action of the president and
Congress.
