AGA CGFM Study guide Exam Questions with Key Marking
Scheme Updated 2024/2025
In government reporting, how is a Homeless Initiative classified? -correct
answer program
All of the following are general criteria that a cost must meet to be allowable
under an intergovernmental cost-reimbursement contract or grant EXCEPT that
the cost must be -correct answer used to meet the matching requirement of
another award.
The Digital Accountability and Transparency Act combines which two pieces of
financial data to improve open reporting of government financial information? -
correct answer data standards and an on-line data exchange
Which of the following would be affected by both the measurement focus and the
basis of accounting? -correct answer a transaction involving legal and other
claims
Governments use cost accounting information to -correct answer monitor and
improve program economy, receive cost reimbursements, establish user fees and
identify efficiencies.
Which objective of federal financial reporting is exemplified by the statement that
"Federal financial reporting should help the reader determine whether future
budgetary resources will likely be sufficient to sustain public services and to meet
obligations as they become due."? -correct answer stewardship
If a proposed standard is moving through the due process phases of approval for
the GASB, FASB, and FASAB Standards, what is the final process document that
is published before the final standard is issued? -correct answer exposure draft
,The objective of the current financial resources measurement focus is to -correct
answer determine if there are sufficient current financial resources available to
pay for goods and services.
All of the following are requirements of FASAB SFFAS 4: Managerial Cost
Accounting Concepts and Standards EXCEPT that -correct answer each
reporting entity should accumulate and report the costs of its activities on a
regular basis for financial statement purposes.
When determining costs to recover through a user fee, expenses associated with
the salary of the program manager are considered -correct answer a direct cost.
Organizations that are legally-separate, tax-exempt entities, should be discretely
presented as component units if all of the following criteria are met EXCEPT -
correct answer the separately elected governing body determines the economic
resources received or held without the primary government's substantive
authority to approve and modify the budget.
The GASB members are appointed by the -correct answer Financial Accounting
Foundation.
What factors should be considered when determining the amount of depreciation
to record? -correct answer historical cost, depreciable life and salvage value
Which of the following is an example of interperiod equity? -correct answer
issuing a 30-year serial bond to finance the construction of a recreation center
The county recorder's office sells hunting licenses, which are valid for one
season. Licenses have been sold from this office for the past 20 years and have
seen relatively stable growth. To forecast sales in the upcoming year, the
recorder reviews receipts for the previous three years and adjusts for the
increase in the license fee. This method of forecasting revenues is called -
correct answer trend analysis.
, A county government operates on a July 2017-June 2018 fiscal year and has
budgeted $300 million in property tax revenue for the current fiscal year. As of
June 2018, the county had received $283.2 million in property tax revenue. The
following month, the county received an additional $7.2 million. In September
2018, the county received an additional $3.7 million. Using the modified accrual
approach to accounting, how much property tax revenue should be recognized in
fiscal year 2017-18? -correct answer $290.4 million
At the state and local level, government-wide financial statements -correct
answer include the statement of net assets or position.
A government that records a deferred inflow for revenue not received, within 60
days of the end of the fiscal year, is using -correct answer the modified accrual
basis of accounting.
The GASB standards for determining a reporting entity include consideration of
the entity's -correct answer financial accountability.
The general fund of a city provides a $100,000 annual subsidy to the city-owned
golf course. This subsidy is an example of -correct answer an interfund transfer.
An expenditure-driven, federal, three-year grant has a total award amount of
$600,000 and a first-year budget of $200,000. Actual first-year expenditures are
$195,000, of which $170,000 has been billed and received prior to the June 30
fiscal year end. The remaining $25,000 will be billed and received in July. What is
the total amount of grant revenue that should be recognized for the first fiscal
year, ending June 30? -correct answer $195,000
To record infrastructure using the modified approach, upgrading fiber cables of a
state's communication network to allow data to flow at higher speeds should be -
correct answer capitalized as an improvement to infrastructure.
Scheme Updated 2024/2025
In government reporting, how is a Homeless Initiative classified? -correct
answer program
All of the following are general criteria that a cost must meet to be allowable
under an intergovernmental cost-reimbursement contract or grant EXCEPT that
the cost must be -correct answer used to meet the matching requirement of
another award.
The Digital Accountability and Transparency Act combines which two pieces of
financial data to improve open reporting of government financial information? -
correct answer data standards and an on-line data exchange
Which of the following would be affected by both the measurement focus and the
basis of accounting? -correct answer a transaction involving legal and other
claims
Governments use cost accounting information to -correct answer monitor and
improve program economy, receive cost reimbursements, establish user fees and
identify efficiencies.
Which objective of federal financial reporting is exemplified by the statement that
"Federal financial reporting should help the reader determine whether future
budgetary resources will likely be sufficient to sustain public services and to meet
obligations as they become due."? -correct answer stewardship
If a proposed standard is moving through the due process phases of approval for
the GASB, FASB, and FASAB Standards, what is the final process document that
is published before the final standard is issued? -correct answer exposure draft
,The objective of the current financial resources measurement focus is to -correct
answer determine if there are sufficient current financial resources available to
pay for goods and services.
All of the following are requirements of FASAB SFFAS 4: Managerial Cost
Accounting Concepts and Standards EXCEPT that -correct answer each
reporting entity should accumulate and report the costs of its activities on a
regular basis for financial statement purposes.
When determining costs to recover through a user fee, expenses associated with
the salary of the program manager are considered -correct answer a direct cost.
Organizations that are legally-separate, tax-exempt entities, should be discretely
presented as component units if all of the following criteria are met EXCEPT -
correct answer the separately elected governing body determines the economic
resources received or held without the primary government's substantive
authority to approve and modify the budget.
The GASB members are appointed by the -correct answer Financial Accounting
Foundation.
What factors should be considered when determining the amount of depreciation
to record? -correct answer historical cost, depreciable life and salvage value
Which of the following is an example of interperiod equity? -correct answer
issuing a 30-year serial bond to finance the construction of a recreation center
The county recorder's office sells hunting licenses, which are valid for one
season. Licenses have been sold from this office for the past 20 years and have
seen relatively stable growth. To forecast sales in the upcoming year, the
recorder reviews receipts for the previous three years and adjusts for the
increase in the license fee. This method of forecasting revenues is called -
correct answer trend analysis.
, A county government operates on a July 2017-June 2018 fiscal year and has
budgeted $300 million in property tax revenue for the current fiscal year. As of
June 2018, the county had received $283.2 million in property tax revenue. The
following month, the county received an additional $7.2 million. In September
2018, the county received an additional $3.7 million. Using the modified accrual
approach to accounting, how much property tax revenue should be recognized in
fiscal year 2017-18? -correct answer $290.4 million
At the state and local level, government-wide financial statements -correct
answer include the statement of net assets or position.
A government that records a deferred inflow for revenue not received, within 60
days of the end of the fiscal year, is using -correct answer the modified accrual
basis of accounting.
The GASB standards for determining a reporting entity include consideration of
the entity's -correct answer financial accountability.
The general fund of a city provides a $100,000 annual subsidy to the city-owned
golf course. This subsidy is an example of -correct answer an interfund transfer.
An expenditure-driven, federal, three-year grant has a total award amount of
$600,000 and a first-year budget of $200,000. Actual first-year expenditures are
$195,000, of which $170,000 has been billed and received prior to the June 30
fiscal year end. The remaining $25,000 will be billed and received in July. What is
the total amount of grant revenue that should be recognized for the first fiscal
year, ending June 30? -correct answer $195,000
To record infrastructure using the modified approach, upgrading fiber cables of a
state's communication network to allow data to flow at higher speeds should be -
correct answer capitalized as an improvement to infrastructure.
