AGA CGFM Proficiency knowledge test Exam Questions and
certified Answers 2024/2025
Which GASB statement established the MD and A as RSI? - correct answer
GASB 34
According to GASB Statement No. 39, which potential component unit could be
reported as a component unit to the primary reporting entity? - correct answer
legally separate, tax-exempt entities
In government accounting, capital assets are reported in all of the following
EXCEPT - correct answer governmental funds.
A law was passed and signed by the governor, which required the first
$1,000,000 received from cigarette taxes to be used for a smoking cessation
program in the subsequent year. In which category, in the fund balance section
of the Governmental Fund Balance Sheet, should this amount be reflected? -
correct answer Committed Fund Balance
Where is the reconciliation between federal budgetary and proprietary accounting
reported? - correct answer on a separate schedule or in the notes
A situation where a government's potential losses are heightened because a
significant portion of its resources are invested with a single issuer is - correct
answer a concentration of credit risk.
Governmental funds use the - correct answer current financial resources
measurement focus and modified accrual basis of accounting
,A public school district located in eastern Kansas is considered a primary
government because - correct answer it has a separately elected governing
body.
A city and county combine operations, which results in the city ceasing to exist
because the city operations are now provided by the county; there is no
significant consideration exchanged. This is an example of - correct answer a
merger.
Amounts owed to fiduciary funds should be reported as - correct answer
payable to external parties.
Where in the ACFR should management describe the scope of the audit
engagement? - correct answer the Letter of Transmittal in the Introductory
Section
A government that needs to reconcile its budgetary basis of accounting to
generally accepted accounting principles would make which of these entries at
the start of its fiscal year? - correct answer Expenditures paid for goods
received the prior year need to be subtracted from Uses of Resources.
A school district with a fiscal year ending on 30 June pays teachers on a 186 day
contract over a 12-month period beginning in September. How should the district
report the two months of salaries earned in the fiscal year that aren't paid until
the following fiscal year? - correct answer The payroll for June is recorded as
an expense and the July and August amounts are recorded as encumbrances in
June.
In state government, for which of the following funds must RSI be produced? -
correct answer major special revenue fund
All of the following are required to be included in the MD and A EXCEPT -
correct answer the auditor's opinion on the MD and A.
, Which of the following is commonly included in the notes to the financial
statement? - correct answer Schedule of short-term debt and purpose.
In addition to the Balance Sheet, which of the following financial statements are
required for governmental funds? - correct answer the Statement of Revenues,
Expenditures, and Changes in Fund Balance
The notes to the financial statements can be found in which portion of the CAFR?
- correct answer basic financial statements
Under the Federal Credit Reform Act of 1990, the difference between the
outstanding principal of direct loans and the present value of estimated net cash
inflows is recognized as - correct answer a subsidy cost allowance on the
balance sheet and an expense on the statement of net cost.
A citizen gives money to a city with the stipulation that the principal remain intact,
and that the investment earnings be used to provide scholarships for city
residents to go to a university of their choice. Based on this information, the
money would be accounted for in which of the following funds? - correct answer
private-purpose trust fund
Where would a reader of an ACFR find the auditor's report? - correct answer in
the financial section
Note disclosure for government combinations should include - correct answer
a description of the primary reason for the combination
A state is preparing the statement of net position and has the following interfund
receivables and payables: 1) The Department of Natural Resources receives
revenues from camping fees. The funding received has legal restrictions
requiring receipts to be used solely for maintaining the parks. At the end of the
certified Answers 2024/2025
Which GASB statement established the MD and A as RSI? - correct answer
GASB 34
According to GASB Statement No. 39, which potential component unit could be
reported as a component unit to the primary reporting entity? - correct answer
legally separate, tax-exempt entities
In government accounting, capital assets are reported in all of the following
EXCEPT - correct answer governmental funds.
A law was passed and signed by the governor, which required the first
$1,000,000 received from cigarette taxes to be used for a smoking cessation
program in the subsequent year. In which category, in the fund balance section
of the Governmental Fund Balance Sheet, should this amount be reflected? -
correct answer Committed Fund Balance
Where is the reconciliation between federal budgetary and proprietary accounting
reported? - correct answer on a separate schedule or in the notes
A situation where a government's potential losses are heightened because a
significant portion of its resources are invested with a single issuer is - correct
answer a concentration of credit risk.
Governmental funds use the - correct answer current financial resources
measurement focus and modified accrual basis of accounting
,A public school district located in eastern Kansas is considered a primary
government because - correct answer it has a separately elected governing
body.
A city and county combine operations, which results in the city ceasing to exist
because the city operations are now provided by the county; there is no
significant consideration exchanged. This is an example of - correct answer a
merger.
Amounts owed to fiduciary funds should be reported as - correct answer
payable to external parties.
Where in the ACFR should management describe the scope of the audit
engagement? - correct answer the Letter of Transmittal in the Introductory
Section
A government that needs to reconcile its budgetary basis of accounting to
generally accepted accounting principles would make which of these entries at
the start of its fiscal year? - correct answer Expenditures paid for goods
received the prior year need to be subtracted from Uses of Resources.
A school district with a fiscal year ending on 30 June pays teachers on a 186 day
contract over a 12-month period beginning in September. How should the district
report the two months of salaries earned in the fiscal year that aren't paid until
the following fiscal year? - correct answer The payroll for June is recorded as
an expense and the July and August amounts are recorded as encumbrances in
June.
In state government, for which of the following funds must RSI be produced? -
correct answer major special revenue fund
All of the following are required to be included in the MD and A EXCEPT -
correct answer the auditor's opinion on the MD and A.
, Which of the following is commonly included in the notes to the financial
statement? - correct answer Schedule of short-term debt and purpose.
In addition to the Balance Sheet, which of the following financial statements are
required for governmental funds? - correct answer the Statement of Revenues,
Expenditures, and Changes in Fund Balance
The notes to the financial statements can be found in which portion of the CAFR?
- correct answer basic financial statements
Under the Federal Credit Reform Act of 1990, the difference between the
outstanding principal of direct loans and the present value of estimated net cash
inflows is recognized as - correct answer a subsidy cost allowance on the
balance sheet and an expense on the statement of net cost.
A citizen gives money to a city with the stipulation that the principal remain intact,
and that the investment earnings be used to provide scholarships for city
residents to go to a university of their choice. Based on this information, the
money would be accounted for in which of the following funds? - correct answer
private-purpose trust fund
Where would a reader of an ACFR find the auditor's report? - correct answer in
the financial section
Note disclosure for government combinations should include - correct answer
a description of the primary reason for the combination
A state is preparing the statement of net position and has the following interfund
receivables and payables: 1) The Department of Natural Resources receives
revenues from camping fees. The funding received has legal restrictions
requiring receipts to be used solely for maintaining the parks. At the end of the
