CGFM III EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
31 CFR Part 208 Management of Federal Agency
Disbursements Correct Answers Requires EFT payments
Accountability of Tax Dollars Act of 2002 Correct Answers
Annual audit for virtually all agencies
Acquisitions Management Phases Correct Answers 1) Establish
specifications
2) Solicit supply sources
3) Selecting contract type
4) Monitoring contact performance
American Depository Receipts (ADRs) (International) Correct
Answers Certificates representing ownership of foreign stock
held in trust.
Registered with SEC
Banker's Acceptance (ST) Correct Answers 1) Guaranteed by
banks to raise money against future production or sale of goods
2) 90 days or less
3) Sold at discount to mature at par
Bonds (LT) Correct Answers Long-term liabilities that
represent money lent to the firm that must be paid back
Budget and Accounting Procedures Act of 1950 Correct
Answers Federal Agency heads must establish internal controls
, Cash Management Correct Answers 1) mutually beneficial
relationships with banks
2) collecting and recording cash
3) generating earnings from cash
4) disbursing cash
Cash Management Improvement Act 1990 Correct Answers
Improve the transfer of federal funds
Certificate of Deposit (CD) (ST) Correct Answers A savings
certificate issued by a bank, depositing money for a specified
length of time.
CFO Act of 1990 Correct Answers Requires an integrated
agency accounting and financial management system
Piloted at 10 agencies
Commercial Paper (ST) Correct Answers Unsecured
promissory notes of $100,000 and up that mature (come due) in
270 days or less.
Components of ERM Correct Answers 1) internal environment
2) objective setting
3) event identification
4) risk assessment
5) risk response
6) control activities
7) information and communication
8) monitoring
SOLUTIONS
31 CFR Part 208 Management of Federal Agency
Disbursements Correct Answers Requires EFT payments
Accountability of Tax Dollars Act of 2002 Correct Answers
Annual audit for virtually all agencies
Acquisitions Management Phases Correct Answers 1) Establish
specifications
2) Solicit supply sources
3) Selecting contract type
4) Monitoring contact performance
American Depository Receipts (ADRs) (International) Correct
Answers Certificates representing ownership of foreign stock
held in trust.
Registered with SEC
Banker's Acceptance (ST) Correct Answers 1) Guaranteed by
banks to raise money against future production or sale of goods
2) 90 days or less
3) Sold at discount to mature at par
Bonds (LT) Correct Answers Long-term liabilities that
represent money lent to the firm that must be paid back
Budget and Accounting Procedures Act of 1950 Correct
Answers Federal Agency heads must establish internal controls
, Cash Management Correct Answers 1) mutually beneficial
relationships with banks
2) collecting and recording cash
3) generating earnings from cash
4) disbursing cash
Cash Management Improvement Act 1990 Correct Answers
Improve the transfer of federal funds
Certificate of Deposit (CD) (ST) Correct Answers A savings
certificate issued by a bank, depositing money for a specified
length of time.
CFO Act of 1990 Correct Answers Requires an integrated
agency accounting and financial management system
Piloted at 10 agencies
Commercial Paper (ST) Correct Answers Unsecured
promissory notes of $100,000 and up that mature (come due) in
270 days or less.
Components of ERM Correct Answers 1) internal environment
2) objective setting
3) event identification
4) risk assessment
5) risk response
6) control activities
7) information and communication
8) monitoring
