CGFM Exam 3: Section 1, Chapter 1 -
Financial Management Functions Exam
2025 Questions and Answers
Financial management functions - ANSWER-1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - ANSWER-1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal) - ANSWER-enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, within 30 days after receipt and acceptance of material and/or services - or - after
receipt of a proper invoice whichever is later. When payments are not made timely,
interest should be automatically paid. Notes that govt should take discounts on
their payables via timely invoices when possible.
Cash management improvement act 1990 - ANSWER-enacted to improve the
transfer of federal funds between federal and states and territories. Objectives are
to (1) minimize the time of transfer and payout for program purposes, (2) ensure
funds are available when requested, and (3) assess an interest liability to the Fed
govt and/or states for the lost value of funds.
31 CFR Part 208 Management of Federal Agency Disbursements - ANSWER-
requires Fed agencies to disburse payments via electronic funds transfer
"float" - ANSWER-the period between the time the check is issued and the time it
is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt? - ANSWER-US Dept of
Treasury
National Debt - ANSWER-borrowings less repayment
Federal Reserve System duties - ANSWER-1) conducting nation's monetary policy
2) supervising and regulating institutions and protecting consumer rights
3) maintaining the stability of the financial system and containing systematic risk
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Financial Management Functions Exam
2025 Questions and Answers
Financial management functions - ANSWER-1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - ANSWER-1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal) - ANSWER-enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, within 30 days after receipt and acceptance of material and/or services - or - after
receipt of a proper invoice whichever is later. When payments are not made timely,
interest should be automatically paid. Notes that govt should take discounts on
their payables via timely invoices when possible.
Cash management improvement act 1990 - ANSWER-enacted to improve the
transfer of federal funds between federal and states and territories. Objectives are
to (1) minimize the time of transfer and payout for program purposes, (2) ensure
funds are available when requested, and (3) assess an interest liability to the Fed
govt and/or states for the lost value of funds.
31 CFR Part 208 Management of Federal Agency Disbursements - ANSWER-
requires Fed agencies to disburse payments via electronic funds transfer
"float" - ANSWER-the period between the time the check is issued and the time it
is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt? - ANSWER-US Dept of
Treasury
National Debt - ANSWER-borrowings less repayment
Federal Reserve System duties - ANSWER-1) conducting nation's monetary policy
2) supervising and regulating institutions and protecting consumer rights
3) maintaining the stability of the financial system and containing systematic risk
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
