CGFM Exam 1 – Governmental Environment | 2024/2025 LATEST
EDITION | 200 Prep Questions with 100% Correct Verified Answers
| NEW! | GRADED A+
This 2024/2025 CGFM Exam 1 prep guide covers the Governmental
Environment section of the Certified Government Financial Manager (CGFM)
exam. It includes 200 exam-style questions with 100% correct and verified
answers, reflecting the latest AGA standards. Topics include the foundations of
government accountability, roles of government branches, legal and regulatory
frameworks, intergovernmental relationships, ethics in government, and public
sector responsibilities. This NEW and A+ graded resource is essential for
candidates aiming to master CGFM Exam 1 and advance in public financial
management.
What does CGFM stand for? - CORRECT ANSWER-Certified Government Financial Manager
What are the three core sections of the CGFM exam? - CORRECT ANSWER-Governmental
Environment, Governmental Accounting, Financial Reporting and Budgeting, and Governmental
Financial Management and Control
What is the primary role of the Government Accountability Office (GAO)? - CORRECT ANSWER-
Auditing and evaluating federal government operations to ensure efficiency, effectiveness, and
accountability.
What legislation established the GAO? - CORRECT ANSWER-Budget and Accounting Act of 1921
What is the purpose of the Federal Managers' Financial Integrity Act (FMFIA)? - CORRECT
ANSWER-To require federal agencies to implement and evaluate internal control systems.
What are internal controls in the context of government finance? - CORRECT ANSWER-
Processes and procedures designed to ensure financial integrity, accuracy, efficiency, and
compliance.
,What is the main focus of the Governmental Accounting Standards Board (GASB)? - CORRECT
ANSWER-Establishing standards for state and local government financial reporting.
What is the significance of the Chief Financial Officers (CFO) Act of 1990? - CORRECT ANSWER-It
established CFO positions in major federal agencies to improve federal financial management.
What is the purpose of the Office of Management and Budget (OMB)? - CORRECT ANSWER-To
assist the President in budget formulation, management of the budgetary process, and oversight of
agency performance.
What is the primary focus of Title 31 of the U.S. Code? - CORRECT ANSWER-Money and Finance
- it governs the financial activities and management of the federal government.
Define 'appropriation' in government finance. - CORRECT ANSWER-A legal authorization by
Congress for federal agencies to incur obligations and make payments.
What is an obligation in federal budgeting terms? - CORRECT ANSWER-A legally binding
commitment by the government to pay for goods, services, or other expenditures.
What is the role of the Congressional Budget Office (CBO)? - CORRECT ANSWER-Providing
nonpartisan analysis for federal budget and economic decisions to Congress.
What are 'revolving funds'? - CORRECT ANSWER-Funds used by government entities that
operate on a cycle of receiving income and using it to finance ongoing operations.
What is a government audit? - CORRECT ANSWER-A systematic review of financial records and
activities to ensure compliance and accuracy.
What is 'fund accounting'? - CORRECT ANSWER-An accounting system used by governments
and nonprofits emphasizing accountability rather than profitability.
What is the Single Audit Act? - CORRECT ANSWER-A law to improve the financial management
of states, local governments, and nonprofits using federal funds.
, Define 'fiscal year' in a government context. - CORRECT ANSWER-A 12-month period used for
budget and accounting purposes, often not aligned with the calendar year.
What is budget authority? - CORRECT ANSWER-Legal authority provided by Congress that
allows government agencies to incur obligations and make payments.
Explain cash accounting. - CORRECT ANSWER-An accounting method that records revenues
when they are received and expenses when they are paid.
Define accrual accounting in government. - CORRECT ANSWER-An accounting method that
records revenues when earned and expenses when incurred, regardless of cash flow.
What is the Antideficiency Act? - CORRECT ANSWER-Legislation prohibiting federal agencies
from spending or obligating funds in excess of their appropriation.
Describe performance budgeting. - CORRECT ANSWER-Budgeting that links funding to expected
results or performance outcomes.
What is a continuing resolution? - CORRECT ANSWER-A type of appropriations legislation that
provides funding for government operations when regular appropriations bills have not been
enacted.
Explain capital budgeting. - CORRECT ANSWER-Planning and managing long-term investments
and projects by governments.
What are public funds? - CORRECT ANSWER-Money collected by the government for public use
through taxes, fees, and other revenues.
What does the Inspector General (IG) do? - CORRECT ANSWER-They conduct audits,
investigations, and evaluations to ensure accountability and efficiency.
EDITION | 200 Prep Questions with 100% Correct Verified Answers
| NEW! | GRADED A+
This 2024/2025 CGFM Exam 1 prep guide covers the Governmental
Environment section of the Certified Government Financial Manager (CGFM)
exam. It includes 200 exam-style questions with 100% correct and verified
answers, reflecting the latest AGA standards. Topics include the foundations of
government accountability, roles of government branches, legal and regulatory
frameworks, intergovernmental relationships, ethics in government, and public
sector responsibilities. This NEW and A+ graded resource is essential for
candidates aiming to master CGFM Exam 1 and advance in public financial
management.
What does CGFM stand for? - CORRECT ANSWER-Certified Government Financial Manager
What are the three core sections of the CGFM exam? - CORRECT ANSWER-Governmental
Environment, Governmental Accounting, Financial Reporting and Budgeting, and Governmental
Financial Management and Control
What is the primary role of the Government Accountability Office (GAO)? - CORRECT ANSWER-
Auditing and evaluating federal government operations to ensure efficiency, effectiveness, and
accountability.
What legislation established the GAO? - CORRECT ANSWER-Budget and Accounting Act of 1921
What is the purpose of the Federal Managers' Financial Integrity Act (FMFIA)? - CORRECT
ANSWER-To require federal agencies to implement and evaluate internal control systems.
What are internal controls in the context of government finance? - CORRECT ANSWER-
Processes and procedures designed to ensure financial integrity, accuracy, efficiency, and
compliance.
,What is the main focus of the Governmental Accounting Standards Board (GASB)? - CORRECT
ANSWER-Establishing standards for state and local government financial reporting.
What is the significance of the Chief Financial Officers (CFO) Act of 1990? - CORRECT ANSWER-It
established CFO positions in major federal agencies to improve federal financial management.
What is the purpose of the Office of Management and Budget (OMB)? - CORRECT ANSWER-To
assist the President in budget formulation, management of the budgetary process, and oversight of
agency performance.
What is the primary focus of Title 31 of the U.S. Code? - CORRECT ANSWER-Money and Finance
- it governs the financial activities and management of the federal government.
Define 'appropriation' in government finance. - CORRECT ANSWER-A legal authorization by
Congress for federal agencies to incur obligations and make payments.
What is an obligation in federal budgeting terms? - CORRECT ANSWER-A legally binding
commitment by the government to pay for goods, services, or other expenditures.
What is the role of the Congressional Budget Office (CBO)? - CORRECT ANSWER-Providing
nonpartisan analysis for federal budget and economic decisions to Congress.
What are 'revolving funds'? - CORRECT ANSWER-Funds used by government entities that
operate on a cycle of receiving income and using it to finance ongoing operations.
What is a government audit? - CORRECT ANSWER-A systematic review of financial records and
activities to ensure compliance and accuracy.
What is 'fund accounting'? - CORRECT ANSWER-An accounting system used by governments
and nonprofits emphasizing accountability rather than profitability.
What is the Single Audit Act? - CORRECT ANSWER-A law to improve the financial management
of states, local governments, and nonprofits using federal funds.
, Define 'fiscal year' in a government context. - CORRECT ANSWER-A 12-month period used for
budget and accounting purposes, often not aligned with the calendar year.
What is budget authority? - CORRECT ANSWER-Legal authority provided by Congress that
allows government agencies to incur obligations and make payments.
Explain cash accounting. - CORRECT ANSWER-An accounting method that records revenues
when they are received and expenses when they are paid.
Define accrual accounting in government. - CORRECT ANSWER-An accounting method that
records revenues when earned and expenses when incurred, regardless of cash flow.
What is the Antideficiency Act? - CORRECT ANSWER-Legislation prohibiting federal agencies
from spending or obligating funds in excess of their appropriation.
Describe performance budgeting. - CORRECT ANSWER-Budgeting that links funding to expected
results or performance outcomes.
What is a continuing resolution? - CORRECT ANSWER-A type of appropriations legislation that
provides funding for government operations when regular appropriations bills have not been
enacted.
Explain capital budgeting. - CORRECT ANSWER-Planning and managing long-term investments
and projects by governments.
What are public funds? - CORRECT ANSWER-Money collected by the government for public use
through taxes, fees, and other revenues.
What does the Inspector General (IG) do? - CORRECT ANSWER-They conduct audits,
investigations, and evaluations to ensure accountability and efficiency.
