CGFM REVIEW SHEET TEST 2 2026
FULL QUESTIONS AND ACCURATE
ANSWERS
◉ Restricted Fund Balance. Answer: Subject to constraints imposed by
external parties or law. Debt covenants (such as a requirement for a
sinking fund) or constraints imposed by legislation or federal and state
agencies, creditors, contributors or granting agencies
◉ Three Categories of net position section of the government-wide
Statement of Net Position. Answer: Restricted, Committed & Assigned
◉ Committed Fund Balance. Answer: Governing body formally
committed net resources to specific activities. Contractual obligations
outstanding. Board approval of large construction contracts would
typically represent commitment of the funds.
◉ Assigned Fund Balance. Answer: Residual balances in funds other
than the General Fund or in the general fund that are intended for
identified purposes
◉ Difference between Committed and Restricted. Answer: Committed
constraint is imposed by a government upon itself
◉ GASB standards state that rainy day funds may be classified as
committed only under specific circumstances which are. Answer: they
,are created by a resolution or ordinance that identifies the specific
circumstances under which the resources may be expended
◉ Other financing sources consist of. Answer: transfers in from other
funds and proceeds of long-term borrowing
◉ Fund Revenues consist of. Answer: taxes, charges for services,
amounts provided by other entities such as state or federal government
◉ Other fund uses. Answer: Transfers of cash out of one fund to other
funds
◉ To recognize revenue from the General Fund transferred to a debt
service fund to record payments of interest and principal on general
obligation debt. Answer: Credit General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
◉ Fund Budgetary Accounts. Answer: Estimated Revenues,
Appropriations, Estimated Other Financing Sources, Estimated Other
Financing Uses, Encumbrances
◉ Fund Activity Accounts. Answer: Revenues, Expenditures, Other
Financing Sources, Other Financing Uses
, ◉ Fund Revenues. Answer: Tax Revenues, Charges for Services
◉ Fund Expenditures. Answer: Current, Capital Outlay, Debt Service
◉ Other Financing Sources. Answer: Transfers In, Debt Proceeds
◉ Other Financing Uses. Answer: Transfers Out
◉ When a PO or Contract is issued as authorized by an appropriation the
government recognizes this commitment as. Answer: An encumbrance
(not yet a liability)
◉ JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts. Answer: DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
◉ JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts. Answer: DR Encumbrances
Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish
the Encumbrance)
FULL QUESTIONS AND ACCURATE
ANSWERS
◉ Restricted Fund Balance. Answer: Subject to constraints imposed by
external parties or law. Debt covenants (such as a requirement for a
sinking fund) or constraints imposed by legislation or federal and state
agencies, creditors, contributors or granting agencies
◉ Three Categories of net position section of the government-wide
Statement of Net Position. Answer: Restricted, Committed & Assigned
◉ Committed Fund Balance. Answer: Governing body formally
committed net resources to specific activities. Contractual obligations
outstanding. Board approval of large construction contracts would
typically represent commitment of the funds.
◉ Assigned Fund Balance. Answer: Residual balances in funds other
than the General Fund or in the general fund that are intended for
identified purposes
◉ Difference between Committed and Restricted. Answer: Committed
constraint is imposed by a government upon itself
◉ GASB standards state that rainy day funds may be classified as
committed only under specific circumstances which are. Answer: they
,are created by a resolution or ordinance that identifies the specific
circumstances under which the resources may be expended
◉ Other financing sources consist of. Answer: transfers in from other
funds and proceeds of long-term borrowing
◉ Fund Revenues consist of. Answer: taxes, charges for services,
amounts provided by other entities such as state or federal government
◉ Other fund uses. Answer: Transfers of cash out of one fund to other
funds
◉ To recognize revenue from the General Fund transferred to a debt
service fund to record payments of interest and principal on general
obligation debt. Answer: Credit General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
◉ Fund Budgetary Accounts. Answer: Estimated Revenues,
Appropriations, Estimated Other Financing Sources, Estimated Other
Financing Uses, Encumbrances
◉ Fund Activity Accounts. Answer: Revenues, Expenditures, Other
Financing Sources, Other Financing Uses
, ◉ Fund Revenues. Answer: Tax Revenues, Charges for Services
◉ Fund Expenditures. Answer: Current, Capital Outlay, Debt Service
◉ Other Financing Sources. Answer: Transfers In, Debt Proceeds
◉ Other Financing Uses. Answer: Transfers Out
◉ When a PO or Contract is issued as authorized by an appropriation the
government recognizes this commitment as. Answer: An encumbrance
(not yet a liability)
◉ JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts. Answer: DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
◉ JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts. Answer: DR Encumbrances
Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish
the Encumbrance)
