CGFM EXAM 1 STUDY GUIDE | COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,FASAB Federal Accounting Standards Advisory Board
FASB Financial Accounting Standards Board
FSIO Financial Systems Integration Office (within GSA)
GAAP Generally Accepted Accounting Principles
GAO Government Accountibility Office
GASB Government Accounting Standards Board
GPRA Government Performance and Results Act
OMB Office of Management and Budget
PAR Performance and Accountability Report
SEA Service Efforts and Accomplishments
Accountability 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 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 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 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 Budget that has been passed by the legistlative branch; has effect of law.
,Appropriation A legistlative enactment (law, statute or ordinance) that creates spending authority; the
legal authority to incur expenses and spend money.
Attestation engagements 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 Legislative enactment that approves programs; prescribes what activities an agency may
pursue if funding is available.
Block grants Intergovernmental provision of resources for broadly defined purposes. Contrasts with
category grants.
Capital Budget 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 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 Forecasts the timing as well as amount of cash flows for the year. Used to project
required cash levels.
Category grants 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 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 An AGA program that helps federal agencies and their components to produce effective,
high-quality Performance and Accountability Reports
Certificate of Participation Form of shared government financing. In a typical form, several financial institutions share
in a loan arrangement with a government entity.
, Charter Local government version of a constitution. States may provide for the establishment of
local governments through charters
checks and balances 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 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 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 Organized units of government such as agencies, offices and departments. Found in all
branches of government at all levels.
Conflict of interest 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 Broad category of tax that includes sales, use, excise and value-added taxes
Continuity of Operations Refers to the efforts to ensure the organization can sustain essential operations
regardless of planned or unplanned incidents or disruptions.
Covenant (bond) 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.
Credit-rating agencies Independent organizations that assess the credit worthiness of debt. Three major rating
agenciew are Standard & Poors, Moody's Investor Service and Fitches rating
Data mining Using special, computer-based techniques such as filters and algorithms to extract
meaningful information from large bodies of data
QUESTIONS AND CORRECT DETAILED
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,FASAB Federal Accounting Standards Advisory Board
FASB Financial Accounting Standards Board
FSIO Financial Systems Integration Office (within GSA)
GAAP Generally Accepted Accounting Principles
GAO Government Accountibility Office
GASB Government Accounting Standards Board
GPRA Government Performance and Results Act
OMB Office of Management and Budget
PAR Performance and Accountability Report
SEA Service Efforts and Accomplishments
Accountability 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 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 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 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 Budget that has been passed by the legistlative branch; has effect of law.
,Appropriation A legistlative enactment (law, statute or ordinance) that creates spending authority; the
legal authority to incur expenses and spend money.
Attestation engagements 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 Legislative enactment that approves programs; prescribes what activities an agency may
pursue if funding is available.
Block grants Intergovernmental provision of resources for broadly defined purposes. Contrasts with
category grants.
Capital Budget 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 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 Forecasts the timing as well as amount of cash flows for the year. Used to project
required cash levels.
Category grants 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 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 An AGA program that helps federal agencies and their components to produce effective,
high-quality Performance and Accountability Reports
Certificate of Participation Form of shared government financing. In a typical form, several financial institutions share
in a loan arrangement with a government entity.
, Charter Local government version of a constitution. States may provide for the establishment of
local governments through charters
checks and balances 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 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 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 Organized units of government such as agencies, offices and departments. Found in all
branches of government at all levels.
Conflict of interest 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 Broad category of tax that includes sales, use, excise and value-added taxes
Continuity of Operations Refers to the efforts to ensure the organization can sustain essential operations
regardless of planned or unplanned incidents or disruptions.
Covenant (bond) 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.
Credit-rating agencies Independent organizations that assess the credit worthiness of debt. Three major rating
agenciew are Standard & Poors, Moody's Investor Service and Fitches rating
Data mining Using special, computer-based techniques such as filters and algorithms to extract
meaningful information from large bodies of data
