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CGFM Exam 3: Section 1, Chapter 1 -
Financial Management Functions
Questions and Correct Answers/ Latest
Update / Already Graded
Financial management functions
Ans: 1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities
Ans: 1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal)
Ans: enacted to ensure the federal government makes timely
payments and pay interest if late. Bills are to be paid within 30
All rights reserved © 2025/ 2026 |
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days after receipt and acceptance of material and/or services -
or - after receipt of a proper invoice whichever is later. Whe n
payments are not made timely, interest should be automatically
paid. Notes that govt should take discounts on their payables
via timely invoices when possible.
Cash management improvement act 1990
Ans: enacted to improve the transfer of federal funds between
federal and states and territories. Objectives are to (1) minimize
the time of transfer and payout for program purposes, (2)
ensure funds are available when requested, and (3) assess an
interest liability to the Fed govt and/or states for the lost value
of funds.
31 CFR Part 208 Management of Federal Agency Disbursements
Ans: requires Fed agencies to disburse payments via electronic
funds transfer
"float"
Ans: the period between the time the check is issued and the
time it is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt?
All rights reserved © 2025/ 2026 |
CGFM Exam 3: Section 1, Chapter 1 -
Financial Management Functions
Questions and Correct Answers/ Latest
Update / Already Graded
Financial management functions
Ans: 1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities
Ans: 1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal)
Ans: enacted to ensure the federal government makes timely
payments and pay interest if late. Bills are to be paid within 30
All rights reserved © 2025/ 2026 |
, Page |2
days after receipt and acceptance of material and/or services -
or - after receipt of a proper invoice whichever is later. Whe n
payments are not made timely, interest should be automatically
paid. Notes that govt should take discounts on their payables
via timely invoices when possible.
Cash management improvement act 1990
Ans: enacted to improve the transfer of federal funds between
federal and states and territories. Objectives are to (1) minimize
the time of transfer and payout for program purposes, (2)
ensure funds are available when requested, and (3) assess an
interest liability to the Fed govt and/or states for the lost value
of funds.
31 CFR Part 208 Management of Federal Agency Disbursements
Ans: requires Fed agencies to disburse payments via electronic
funds transfer
"float"
Ans: the period between the time the check is issued and the
time it is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt?
All rights reserved © 2025/ 2026 |
