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CGFM EXAM 2 Questions and Correct
Answers/ Latest Update / Already Graded
Special assessments are used to ensure that
Ans: individuals benefiting from the project are the ones who
will pay for it
imputed costs
Ans: costs incurred by a federal entity for goods and services
provided and paid for in total, or in part, by other federal
entities
Accumulated Depreciation is which type of account
Ans: contra asset
Preferred Costing Methodology
Ans: Directly tracing costs wherever feasible and economically
practical
due process document describing various methods of accounting for a
transaction and asks respondents to provide their views on the
preferred method
All rights reserved © 2025/ 2026 |
, Page |2
Ans: discussion memorandum
What is the correct accounting entry when one government agency
receives a grant from another government agency?
Ans: The grantor agency recognizes liability and the recipient
agency recognizes non-exchange revenue when the recipient
agency meets all eligibility requirements.
GASB, FASB, and FASAB have been designated standard-setting
bodies for accounting and reporting standards by the
Ans: AICPA
Federal appropriations provide a legal authority for undertaking
programs, allocating resources, and
Ans: expending funds
Federal appropriations law can be categorized into which three topical
areas?
Ans: Purpose, time, and amount (PTA)
All rights reserved © 2025/ 2026 |
, Page |3
What are the basic types of budget authority used in the Federal
Government? (6)
Ans: 1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
In financial reporting, consistency of communication means
Ans: 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.
Budgeting is an element of which policy?
Ans: fiscal
Another term for the federal government baseline budget is
Ans: a current level of service budget.
All rights reserved © 2025/ 2026 |
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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: citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal
entry required is a debit to
Ans: Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element?
Ans: program
Which of the following sources of accounting principles is at the top of
the GASB hierarchy?
Ans: Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board
is to
Ans: set standards for the general purpose financial statements
of international public sector entities.
All rights reserved © 2025/ 2026 |
CGFM EXAM 2 Questions and Correct
Answers/ Latest Update / Already Graded
Special assessments are used to ensure that
Ans: individuals benefiting from the project are the ones who
will pay for it
imputed costs
Ans: costs incurred by a federal entity for goods and services
provided and paid for in total, or in part, by other federal
entities
Accumulated Depreciation is which type of account
Ans: contra asset
Preferred Costing Methodology
Ans: Directly tracing costs wherever feasible and economically
practical
due process document describing various methods of accounting for a
transaction and asks respondents to provide their views on the
preferred method
All rights reserved © 2025/ 2026 |
, Page |2
Ans: discussion memorandum
What is the correct accounting entry when one government agency
receives a grant from another government agency?
Ans: The grantor agency recognizes liability and the recipient
agency recognizes non-exchange revenue when the recipient
agency meets all eligibility requirements.
GASB, FASB, and FASAB have been designated standard-setting
bodies for accounting and reporting standards by the
Ans: AICPA
Federal appropriations provide a legal authority for undertaking
programs, allocating resources, and
Ans: expending funds
Federal appropriations law can be categorized into which three topical
areas?
Ans: Purpose, time, and amount (PTA)
All rights reserved © 2025/ 2026 |
, Page |3
What are the basic types of budget authority used in the Federal
Government? (6)
Ans: 1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
In financial reporting, consistency of communication means
Ans: 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.
Budgeting is an element of which policy?
Ans: fiscal
Another term for the federal government baseline budget is
Ans: a current level of service budget.
All rights reserved © 2025/ 2026 |
, Page |4
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: citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal
entry required is a debit to
Ans: Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element?
Ans: program
Which of the following sources of accounting principles is at the top of
the GASB hierarchy?
Ans: Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board
is to
Ans: set standards for the general purpose financial statements
of international public sector entities.
All rights reserved © 2025/ 2026 |
