CGFM Exam 2 Questions and Correct Answers/ Latest Update / Already Graded

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CGFM Exam 2 Questions and Correct
Answers/ Latest Update / Already Graded
I 1.The Defense Logistics Agency holds jet fuel as inventory, which it
sells to support flight operations. The table on the left provides
beginning/ending fiscal year 2017 inventory levels and purchase
information. Assuming the agency uses the FIFO inventory valuation
method, what was the cost of goods sold for jet fuel in fiscal year 2017?

Ans: Correct Answer: $133.50


I 2.In financial reporting, consistency of communication means

Ans: Correct Answer: if accounting principles have changed or
if the financial reporting entity has changed, the nature and
reason for the change, as well as the effect of the change,
should be disclosed.


I 3.Budgeting is an element of which policy?

Ans: Correct Answer: fiscal


I 4.Another term for the federal government baseline budget is

Ans: Correct Answer: a current level of service budget.




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I 5.As described by FASAB, the four groups of people to whom the
government is accountable and are, therefore, potential users of
federal financial statements are

Ans: Correct Answer: citizens, Congress, executives, and
program managers.


I 6.When establishing an allowance for doubtful accounts, the journal
entry required is a debit to

Ans: Correct Answer: Bad Debts Expense and a credit to the
Allowance for Doubtful Accounts.


I 7.Street resurfacing is a type of which budget element?

Ans: Correct Answer: program


I 8.Which of the following is a correct accounting entry when one
government agency receives a grant from another government
agency?

Ans: Correct Answer: The grantor agency recognizes liability
and the recipient agency recognizes non-exchange revenue
when the recipient agency meets all eligibility requireme nts.




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I 9.Which of the following sources of accounting principles is at the top
of the GASB hierarchy?

Ans: Correct Answer: Generally Accepted Accounting
Principles


I 10.The role of the International Public Sector Accounting Standards
Board is to

Ans: Correct Answer: set standards for the general purpose
financial statements of international public sector entities.


I 11.A state needs to determine its indirect cost rate for fringe benefits
as a function of direct salaries costs of $3 million. Based on the
information shown on the left, the indirect cost is

Ans: Correct Answer: 10.8%


I 12.Non-exchange revenue includes inflows of resources arising from

Ans: Correct Answer: taxes, fines and penalties from the
private sector.


I 13.A group of activities within a function are known as

Ans: Correct Answer: a program.


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I 14.In financing capital projects, special assessments are used to
ensure that

Ans: Correct Answer: the individuals benefiting from the
project are the ones who pay for it.


I 15.The organizations that establish the standards used by their
constituents for external reporting purposes include FASB, FASAB,
GASB and

Ans: Correct Answer: International Public Sector Accounting
Standards Board.


I 16.Which of the following terms describes costs an agency incurs on
behalf of another agency?

Ans: Correct Answer: inter-entity


I 17.State and local governments need cost information to receive
reimbursements for allowable costs for federal grants, while federal
agencies are required to have cost accounting concepts in the
preparation of what type of statements?

Ans: Correct Answer: financial statements



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