CGFM EXAM 2 SECTION 1 | COMPLETE
STUDY GUIDE, PRACTICE QUESTIONS AND
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Performance reports Inform users how well gov is operating and whether it is achieving goals in
effective/efficient manner
10th Amendment - Reserve Clause Establishes two levels of gov - federal and state based on delegation of powers
Interperiod Equity Current period taxpayer's are paying current period's services
Accountability Cornerstone of financial reporting
Gov accountability Based on belief that gov has responsibility to report, public has right to know, and
ultimate power belongs to people
Ballot box, referendum, initiatives How people exercise power
Legal accountability Need to comply with laws, rules, regulations
Performance accountability Ensuring government act in efficient, effective, or economic manner
Fiscal accountability Associated with raising of resources and allocation of those resources accomplish
objectives
Operational accountability Associated with stewardship of public resources. Public officials must ensure resources
are used appropriately
Performance measures and performance reporting Ways to address operational accountability
Executive branch Accountable to legislative branch and the public
Operating in efficient and effective manners, collecting and How is executive branch accountable to public
using revenues
Using resources in accordance with legislative mandates How is executive branch accountable to legislative branch
within fiscal constraints imposed by legislative branch
Legislative branch Accountable to public for raising of resources and for determining how those resources
are to be used
, Debt ceiling Accountability mechanism that allows congress to monitor financial effects of spending
and tax policies
Determine compliance with contractual agreements related to How do investors and creditors use financial reports
debt issues
Assess accountability and help make social, economic, and How do financial reports assist users
political decisions
Financial reporting Primary communication device for assessing accountability
GASB Concept Statement No 1 Contains hierarchy of objectives of financial operations and how the operations focus on
accountability
Accountbaility Overall goal listed in GASB Concept Statement No 1
Raising resources and for determining how resources are to Public officials are responsible for
be used
Enactment of budget Primary responsibility of public officials involves
Results of operations Financial reporting should provide info about
Point in time reports and period reports Two types of financial reports
Point in time reports Provides current info as of date of the report (balance sheet)
Period reports (flow reports) Covers entire FY (operating statement, cash flow statement)
General purpose external financial reports (GPEFR) Consist primarily of audited financial statements, including notes, RSI, and other info
Basic or principal financial statements Another name for audited financial statements
Summary/Popular reports Reports that are shorter and contain narrative, pictures, graphs
AGAs Citizen Centric Report Example of summary/popular report
STUDY GUIDE, PRACTICE QUESTIONS AND
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Performance reports Inform users how well gov is operating and whether it is achieving goals in
effective/efficient manner
10th Amendment - Reserve Clause Establishes two levels of gov - federal and state based on delegation of powers
Interperiod Equity Current period taxpayer's are paying current period's services
Accountability Cornerstone of financial reporting
Gov accountability Based on belief that gov has responsibility to report, public has right to know, and
ultimate power belongs to people
Ballot box, referendum, initiatives How people exercise power
Legal accountability Need to comply with laws, rules, regulations
Performance accountability Ensuring government act in efficient, effective, or economic manner
Fiscal accountability Associated with raising of resources and allocation of those resources accomplish
objectives
Operational accountability Associated with stewardship of public resources. Public officials must ensure resources
are used appropriately
Performance measures and performance reporting Ways to address operational accountability
Executive branch Accountable to legislative branch and the public
Operating in efficient and effective manners, collecting and How is executive branch accountable to public
using revenues
Using resources in accordance with legislative mandates How is executive branch accountable to legislative branch
within fiscal constraints imposed by legislative branch
Legislative branch Accountable to public for raising of resources and for determining how those resources
are to be used
, Debt ceiling Accountability mechanism that allows congress to monitor financial effects of spending
and tax policies
Determine compliance with contractual agreements related to How do investors and creditors use financial reports
debt issues
Assess accountability and help make social, economic, and How do financial reports assist users
political decisions
Financial reporting Primary communication device for assessing accountability
GASB Concept Statement No 1 Contains hierarchy of objectives of financial operations and how the operations focus on
accountability
Accountbaility Overall goal listed in GASB Concept Statement No 1
Raising resources and for determining how resources are to Public officials are responsible for
be used
Enactment of budget Primary responsibility of public officials involves
Results of operations Financial reporting should provide info about
Point in time reports and period reports Two types of financial reports
Point in time reports Provides current info as of date of the report (balance sheet)
Period reports (flow reports) Covers entire FY (operating statement, cash flow statement)
General purpose external financial reports (GPEFR) Consist primarily of audited financial statements, including notes, RSI, and other info
Basic or principal financial statements Another name for audited financial statements
Summary/Popular reports Reports that are shorter and contain narrative, pictures, graphs
AGAs Citizen Centric Report Example of summary/popular report
