CMFO Exam Questions and Answers
Graded A+
Accounts Receivable - A/R - Correct answer-Amounts owed to you by other
parties, such as taxpayers, other agencies & financial institutions and shown on its
balance sheet as an asset
Chart of Accounts - Correct answer-The standard system of account titles kept for
accounting records
- Flexible Chart of Accounts (FCOA)
-Use to organize and segregate expenditures, revenues, assets, and liabilities
Accounting Equation - Correct answer-Asset = Liabilities (reserve) + Fund
Balance (surplus)
Dr = Cr + Cr
- Balance Sheet based on accounting equation
- Balance Sheet presents asset on the left-hand side
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,Steps In a Transaction (Accounting Entries) - Correct answer-1. Business
Transaction (Source Document)
2. Journal Entry
3. General Ledger
4. Trial Balance
5. Finance Statements (Balance Sheet, Income Sheet)
Accounts Payable, A/P - Correct answer-The bills your municipalities owes to
vendors and other agencies such as the school district, county, and special district,
shown on the organization's balance sheet as a liability
Accrual Method - Correct answer-A system that records the sales (any types),
regardless when payment is made.
- Expenditure is recorded when goods or services are received, though the payment
may be deferred
Balance Sheet - Correct answer--Financial "Snapshot" of the organization at a
given date in time
-It lists assets, liabilities, and fund balance
-Real life example of accounting equation
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, Assets - Correct answer-Items of value held by the organization
Accounting System - Correct answer-The total structure of records and procedure
which record, classify and report information on the financial position and
operations of a governmential unit or any of its funds and organizational
components
Adjusting Entries - Correct answer-Journal entries usually made at end of an
accounting peroid to allocate revenue and expenditures to the period in which they
actually occurred
Cash Method - Correct answer-Revenue is recorded when cash is received
Expenditures is recorded when check is written to a vendor
A/P Ledger - Correct answer-Helps control expenditures and payables
-At month's end, A/P ledger is reconciled with A/P control account
Modified Accrual - Correct answer-Other Comprehensive Basis of Accounting
(OCBOA)
Revenue is recorded when cash is in hand
Expenditures recorded when purchase is made
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Graded A+
Accounts Receivable - A/R - Correct answer-Amounts owed to you by other
parties, such as taxpayers, other agencies & financial institutions and shown on its
balance sheet as an asset
Chart of Accounts - Correct answer-The standard system of account titles kept for
accounting records
- Flexible Chart of Accounts (FCOA)
-Use to organize and segregate expenditures, revenues, assets, and liabilities
Accounting Equation - Correct answer-Asset = Liabilities (reserve) + Fund
Balance (surplus)
Dr = Cr + Cr
- Balance Sheet based on accounting equation
- Balance Sheet presents asset on the left-hand side
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Steps In a Transaction (Accounting Entries) - Correct answer-1. Business
Transaction (Source Document)
2. Journal Entry
3. General Ledger
4. Trial Balance
5. Finance Statements (Balance Sheet, Income Sheet)
Accounts Payable, A/P - Correct answer-The bills your municipalities owes to
vendors and other agencies such as the school district, county, and special district,
shown on the organization's balance sheet as a liability
Accrual Method - Correct answer-A system that records the sales (any types),
regardless when payment is made.
- Expenditure is recorded when goods or services are received, though the payment
may be deferred
Balance Sheet - Correct answer--Financial "Snapshot" of the organization at a
given date in time
-It lists assets, liabilities, and fund balance
-Real life example of accounting equation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Assets - Correct answer-Items of value held by the organization
Accounting System - Correct answer-The total structure of records and procedure
which record, classify and report information on the financial position and
operations of a governmential unit or any of its funds and organizational
components
Adjusting Entries - Correct answer-Journal entries usually made at end of an
accounting peroid to allocate revenue and expenditures to the period in which they
actually occurred
Cash Method - Correct answer-Revenue is recorded when cash is received
Expenditures is recorded when check is written to a vendor
A/P Ledger - Correct answer-Helps control expenditures and payables
-At month's end, A/P ledger is reconciled with A/P control account
Modified Accrual - Correct answer-Other Comprehensive Basis of Accounting
(OCBOA)
Revenue is recorded when cash is in hand
Expenditures recorded when purchase is made
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
