CGFM EXAM 2 2025 Questions and
Answers
Special assessments are used to ensure that - --Answer --individuals
benefiting from the project are the ones who will pay for it
imputed costs - --Answer --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 - --Answer --contra
asset
Preferred Costing Methodology - --Answer --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 - --
Answer --discussion memorandum
What is the correct accounting entry when one government agency receives a grant
from another government agency? - --Answer --The grantor agency
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,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 - --Answer --AICPA
Federal appropriations provide a legal authority for undertaking programs,
allocating resources, and - --Answer --expending funds
Federal appropriations law can be categorized into which three topical areas? - --
Answer --Purpose, time, and amount (PTA)
What are the basic types of budget authority used in the Federal Government? (6) -
--Answer --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 - --Answer --if
accounting principles have changed or if the financial reporting entity has changed,
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, 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? - --Answer --fiscal
Another term for the federal government baseline budget is - --Answer --a
current level of service budget.
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 - -
-Answer --citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal entry required is
a debit to - --Answer --Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element? - --Answer --program
Which of the following sources of accounting principles is at the top of the GASB
hierarchy? - --Answer --Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board is to - --
Answer --set standards for the general purpose financial statements of
international public sector entities.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Answers
Special assessments are used to ensure that - --Answer --individuals
benefiting from the project are the ones who will pay for it
imputed costs - --Answer --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 - --Answer --contra
asset
Preferred Costing Methodology - --Answer --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 - --
Answer --discussion memorandum
What is the correct accounting entry when one government agency receives a grant
from another government agency? - --Answer --The grantor agency
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,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 - --Answer --AICPA
Federal appropriations provide a legal authority for undertaking programs,
allocating resources, and - --Answer --expending funds
Federal appropriations law can be categorized into which three topical areas? - --
Answer --Purpose, time, and amount (PTA)
What are the basic types of budget authority used in the Federal Government? (6) -
--Answer --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 - --Answer --if
accounting principles have changed or if the financial reporting entity has changed,
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, 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? - --Answer --fiscal
Another term for the federal government baseline budget is - --Answer --a
current level of service budget.
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 - -
-Answer --citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal entry required is
a debit to - --Answer --Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element? - --Answer --program
Which of the following sources of accounting principles is at the top of the GASB
hierarchy? - --Answer --Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board is to - --
Answer --set standards for the general purpose financial statements of
international public sector entities.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
