CGFM Exam: Section 1, Chapter 1 Exam
Questions with 100% Correct Answers
(Graded A+)
Difference between a budget in public vs. private sector? - Answer-Public sector =
Law/Private sector = benchmark for performance and goals for growth
Primary control device in Govt? - Answer-budget
Financial Reports - Answer-primary mechanism by which public officials are able to
demonstrate accountability. They show how much was raised, how it was spent, and
whether spending was in compliance with the budget.
State Authority - Answer-All the powers not set forth in the constitution are left to the
states
Govt Revenues are - Answer-involuntary revenue source - tax assessments, licenses,
fees, permits and user fees
legal accountability - Answer-the need to comply with various laws, rules and
regulations
performance accountability - Answer-ensuring that governments act in an efficient,
effective or economic manner
Fiscal Accountability - Answer-raising of resources and the allocation of those resources
to accomplish objectives. Officials are accountable for the resources raised and how
they are used.
Operational Accountability - Answer-Involves stewardship of public resources. Public
officials must ensure resources are used appropriately
Which branch is accountable to public for raising of resources and for determining how
those resources are to be used? - Answer-legislative
Tax equity - Answer-current generation of citizens are accountable for paying for
current-yr services; can't shift burden to future-yr taxpayers
debt ceiling - Answer-an accountability mechanism that allows Congress to monitor the
financial effects of spending and tax policies
Govt Financial Reporting assists with: - Answer-(1) assess accountability & (2) helps
make economic, social, and political decisions
, point-in-time reports - Answer-provides current information as of the date of the report.
Ex) Balance Sheet
period reports/flow reports - Answer-period report covers the entity's entire fiscal year.
Ex) operating statement or cash slow statement
characteristics of financial reports - Answer-(1) Understand-ability (2) Reliability (3)
Relevance (4) Timeliness (5) Consistency (6) Comparability
"Sunshine Laws" - Answer-freedom of information laws; govt should operate in the
sunshine
DATA Act 2014 - Answer-established govt-wide financial data standards and the
increased availability, accuracy, and usefulness of federal spending info
the Federal Funding Accountability and Transparency Act of 2006 (FFATA) - Answer-
enacted to enable taxpayers and policy makers to track federal spending more
effectively; precursor to DATA ct 2014
Financial Accounting Foundation (FAF) - Answer-granted the authority to promulgate
accounting and reporting standards from the SEC. Appoints members of the FASB.
Financial Accounting Standards Board - Answer-has the authority to establish
accounting and reporting standards for private sector companies, including not-for-profit
organizations.
Govt Accounting Standards Board (GASB) - Answer-established in 1984, establishes
accounting rules for state and local govts
Federal Accounting Standards Advisory Board (FASAB) - Answer-Established in 1990;
responsible for issuing accounting standards for FED govt
International Public Sector Accounting Standards Board (IPSASB) - Answer-develops
international public sector accounting standards for use by public sector entities around
the world for preparation of general purpose financial statements
due process - Answer-designed to permit a timely, thorough and open study of
accounting and financial reporting issues.
discussion memorandum (DM) - Answer-defines the accounting and reporting issues for
a particular project. At this point, a board has no particular view on the issue and
respondents are asked to comment on the issues
Questions with 100% Correct Answers
(Graded A+)
Difference between a budget in public vs. private sector? - Answer-Public sector =
Law/Private sector = benchmark for performance and goals for growth
Primary control device in Govt? - Answer-budget
Financial Reports - Answer-primary mechanism by which public officials are able to
demonstrate accountability. They show how much was raised, how it was spent, and
whether spending was in compliance with the budget.
State Authority - Answer-All the powers not set forth in the constitution are left to the
states
Govt Revenues are - Answer-involuntary revenue source - tax assessments, licenses,
fees, permits and user fees
legal accountability - Answer-the need to comply with various laws, rules and
regulations
performance accountability - Answer-ensuring that governments act in an efficient,
effective or economic manner
Fiscal Accountability - Answer-raising of resources and the allocation of those resources
to accomplish objectives. Officials are accountable for the resources raised and how
they are used.
Operational Accountability - Answer-Involves stewardship of public resources. Public
officials must ensure resources are used appropriately
Which branch is accountable to public for raising of resources and for determining how
those resources are to be used? - Answer-legislative
Tax equity - Answer-current generation of citizens are accountable for paying for
current-yr services; can't shift burden to future-yr taxpayers
debt ceiling - Answer-an accountability mechanism that allows Congress to monitor the
financial effects of spending and tax policies
Govt Financial Reporting assists with: - Answer-(1) assess accountability & (2) helps
make economic, social, and political decisions
, point-in-time reports - Answer-provides current information as of the date of the report.
Ex) Balance Sheet
period reports/flow reports - Answer-period report covers the entity's entire fiscal year.
Ex) operating statement or cash slow statement
characteristics of financial reports - Answer-(1) Understand-ability (2) Reliability (3)
Relevance (4) Timeliness (5) Consistency (6) Comparability
"Sunshine Laws" - Answer-freedom of information laws; govt should operate in the
sunshine
DATA Act 2014 - Answer-established govt-wide financial data standards and the
increased availability, accuracy, and usefulness of federal spending info
the Federal Funding Accountability and Transparency Act of 2006 (FFATA) - Answer-
enacted to enable taxpayers and policy makers to track federal spending more
effectively; precursor to DATA ct 2014
Financial Accounting Foundation (FAF) - Answer-granted the authority to promulgate
accounting and reporting standards from the SEC. Appoints members of the FASB.
Financial Accounting Standards Board - Answer-has the authority to establish
accounting and reporting standards for private sector companies, including not-for-profit
organizations.
Govt Accounting Standards Board (GASB) - Answer-established in 1984, establishes
accounting rules for state and local govts
Federal Accounting Standards Advisory Board (FASAB) - Answer-Established in 1990;
responsible for issuing accounting standards for FED govt
International Public Sector Accounting Standards Board (IPSASB) - Answer-develops
international public sector accounting standards for use by public sector entities around
the world for preparation of general purpose financial statements
due process - Answer-designed to permit a timely, thorough and open study of
accounting and financial reporting issues.
discussion memorandum (DM) - Answer-defines the accounting and reporting issues for
a particular project. At this point, a board has no particular view on the issue and
respondents are asked to comment on the issues
