AGA CGFM Common practice test Questions and Answers;
verified and accurate 2025
1.Whch of the followng agences have the authorty to prevent FASAB from ssung
an accountng standard that has been approved by a majorty of the FASAB
Board? - correct answer: the GAO and the OMB
2.The Department of the Navy oblgated $700 mllon for the constructon of 10
new shps n 2013. The Navy's constructon appropraton s avalable for 5 years. n
2015, the 10 shps are delvered for a total cost of $675 mllon. The $25 mllon
dfference s an example of - correct answer: an amount subject to deoblgaton.
3.Requred supplementary stewardshp nformaton for the federal government's
consoldated fnancal statements ncludes nformaton about - correct answer: the
federal government's nvestment n research and development, human captal, and
non-federal physcal property.
4.Consoldated federal fnancal reports are reports that present fnancal nformaton
- correct answer: as f the reportng entty operated as a sngle organzaton,
elmnatng all transactons between ntra-government enttes.
5.n federal budgetng, revolvng funds are an example of whch type of
appropratons? - correct answer: no-year
6.n May, a federal offce admnstrator approved a $2 mllon purchase request,
settng asde budget authorty for contract support. n June, the contractng offcer
formally awarded the contract. Whch of the journal entres from the mage on the
left should accompany the contractng offcer's actons? - correct answer: Opton 1
7.The basc requrements of the U.S. Consoldated Fnancal Reports nclude all of
the followng EXCEPT - correct answer: Statement of mproper Payments.
,8.What s the mnmum lfe cycle of an appropraton? - correct answer: 6 years
9.A federal employee's travel order/authorzaton was just approved for an
upcomng tranng event. Upon approval, the employee's estmated travel costs
should be recorded as - correct answer: an oblgaton.
10.Footnotes to federal fnancal statements provde detaled nformaton about -
correct answer: partcular lnes on the fnancal statements and nformaton about
the accountng prncples used to prepare the statements.
11.What term s used to descrbe funds that are avalable untl the purpose for
whch the program was establshed s completed, or untl there are no more
recpents? - correct answer: no-year funds
12.As defned by the Statement of Federal Fnancal Accountng Concepts 2, to be
a reportng entty an organzaton must meet all of the followng crtera EXCEPT -
correct answer: lkely users of the budgetary accounts could hold the entty
accountable for ts deployment and use of resources.
13.Under the Federal Credt Reform Act, the student loan subsdy rate s
reassessed annually to reflect - correct answer: nterest rate fluctuaton and
defaults.
14.One of the dutes of the U.S. Department of the Treasury s to - correct
answer: serve as the fnancal manager and fscal agent of the U.S. government.
15.Trust funds wthn the federal government refer to - correct answer: accounts
mantaned by the federal government for recordng dedcated collectons and
expendtures.
16.On an annual bass, OMB s to provde nformaton on how the requred
Government Performance and Results Act Modernzaton Act's outcome-orented,
, crosscuttng goals wll be acheved. Whch of the followng federal agency-ssued
reports wll assst n meetng ths objectve? - correct answer: MD and A and
Performance Reports
17.A formal delegaton of authorty, by the head of a federal entty to other entty
employees, to ncur oblgatons wthn the specfed amount, s called - correct
answer: an allotment.
18.f an entty appears n the federal consoldated fnancal report n the secton
enttled "Federal Programs by Agency and Account," under FASAB SSFAC2, t s
based on - correct answer: conclusve crtera.
19.How dd agency accountng for loan programs change after the passage of the
Federal Credt Reform Act? - correct answer: A subsdy rate must be calculated
for loan programs and used by agences to determne costs for contnung loan
programs.
20.A federal agency's Fund Balance Wth Treasury s decreased by whch of the
followng events? - correct answer: confrmed dsbursements
21.Approved postng models for federal accountng transactons are publshed n
the U.S. Standard General Ledger by the - correct answer: U.S. Department of
the Treasury.
22.What does the Fund Balance wth Treasury represent at the department
level? - correct answer: an ntragovernmental asset
23.What type of funds are revolvng funds that conduct busness-type operatons
prmarly wthn and between federal government agences? - correct answer:
ntragovernmental funds
verified and accurate 2025
1.Whch of the followng agences have the authorty to prevent FASAB from ssung
an accountng standard that has been approved by a majorty of the FASAB
Board? - correct answer: the GAO and the OMB
2.The Department of the Navy oblgated $700 mllon for the constructon of 10
new shps n 2013. The Navy's constructon appropraton s avalable for 5 years. n
2015, the 10 shps are delvered for a total cost of $675 mllon. The $25 mllon
dfference s an example of - correct answer: an amount subject to deoblgaton.
3.Requred supplementary stewardshp nformaton for the federal government's
consoldated fnancal statements ncludes nformaton about - correct answer: the
federal government's nvestment n research and development, human captal, and
non-federal physcal property.
4.Consoldated federal fnancal reports are reports that present fnancal nformaton
- correct answer: as f the reportng entty operated as a sngle organzaton,
elmnatng all transactons between ntra-government enttes.
5.n federal budgetng, revolvng funds are an example of whch type of
appropratons? - correct answer: no-year
6.n May, a federal offce admnstrator approved a $2 mllon purchase request,
settng asde budget authorty for contract support. n June, the contractng offcer
formally awarded the contract. Whch of the journal entres from the mage on the
left should accompany the contractng offcer's actons? - correct answer: Opton 1
7.The basc requrements of the U.S. Consoldated Fnancal Reports nclude all of
the followng EXCEPT - correct answer: Statement of mproper Payments.
,8.What s the mnmum lfe cycle of an appropraton? - correct answer: 6 years
9.A federal employee's travel order/authorzaton was just approved for an
upcomng tranng event. Upon approval, the employee's estmated travel costs
should be recorded as - correct answer: an oblgaton.
10.Footnotes to federal fnancal statements provde detaled nformaton about -
correct answer: partcular lnes on the fnancal statements and nformaton about
the accountng prncples used to prepare the statements.
11.What term s used to descrbe funds that are avalable untl the purpose for
whch the program was establshed s completed, or untl there are no more
recpents? - correct answer: no-year funds
12.As defned by the Statement of Federal Fnancal Accountng Concepts 2, to be
a reportng entty an organzaton must meet all of the followng crtera EXCEPT -
correct answer: lkely users of the budgetary accounts could hold the entty
accountable for ts deployment and use of resources.
13.Under the Federal Credt Reform Act, the student loan subsdy rate s
reassessed annually to reflect - correct answer: nterest rate fluctuaton and
defaults.
14.One of the dutes of the U.S. Department of the Treasury s to - correct
answer: serve as the fnancal manager and fscal agent of the U.S. government.
15.Trust funds wthn the federal government refer to - correct answer: accounts
mantaned by the federal government for recordng dedcated collectons and
expendtures.
16.On an annual bass, OMB s to provde nformaton on how the requred
Government Performance and Results Act Modernzaton Act's outcome-orented,
, crosscuttng goals wll be acheved. Whch of the followng federal agency-ssued
reports wll assst n meetng ths objectve? - correct answer: MD and A and
Performance Reports
17.A formal delegaton of authorty, by the head of a federal entty to other entty
employees, to ncur oblgatons wthn the specfed amount, s called - correct
answer: an allotment.
18.f an entty appears n the federal consoldated fnancal report n the secton
enttled "Federal Programs by Agency and Account," under FASAB SSFAC2, t s
based on - correct answer: conclusve crtera.
19.How dd agency accountng for loan programs change after the passage of the
Federal Credt Reform Act? - correct answer: A subsdy rate must be calculated
for loan programs and used by agences to determne costs for contnung loan
programs.
20.A federal agency's Fund Balance Wth Treasury s decreased by whch of the
followng events? - correct answer: confrmed dsbursements
21.Approved postng models for federal accountng transactons are publshed n
the U.S. Standard General Ledger by the - correct answer: U.S. Department of
the Treasury.
22.What does the Fund Balance wth Treasury represent at the department
level? - correct answer: an ntragovernmental asset
23.What type of funds are revolvng funds that conduct busness-type operatons
prmarly wthn and between federal government agences? - correct answer:
ntragovernmental funds
