CGFM EXAM 2 Study 2026
Expert Verifed Ace the Test
Non-Spendable Fund Balance - ANSWER ✔✔Assets not in
spendable form-Inventories and prepaid items, principal of a permanent
fund which may not be spent, and assets held for sale and long-term
receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - ANSWER ✔✔Subject to constraints
imposed by external parties or law. Debt covenants (such as a
requirement for a sinking fund) or constraints imposed by legislation or
federal and state agencies, creditors, contributors or granting agencies
,Three Categories of net position section of the government-wide
Statement of Net Position - ANSWER ✔✔Restricted, Committed &
Assigned
Committed Fund Balance - ANSWER ✔✔Governing body formally
committed net resources to specific activities. Contractual obligations
outstanding. Board approval of large construction contracts would
typically represent commitment of the funds.
Assigned Fund Balance - ANSWER ✔✔Residual balances in funds
other than the General Fund or in the general fund that are intended for
identified purposes
Difference between Committed and Restricted - ANSWER
✔✔Committed constraint is imposed by a government upon itself
GASB standards state that rainy day funds may be classified as
committed only under specific circumstances which are - ANSWER
✔✔they are created by a resolution or ordinance that identifies the
specific circumstances under which the resources may be expended
Other financing sources consist of - ANSWER ✔✔transfers in from
other funds and proceeds of long-term borrowing
,Fund Revenues consist of - ANSWER ✔✔taxes, charges for
services, amounts provided by other entities such as state or federal
government
Other fund uses - ANSWER ✔✔Transfers of cash out of one fund to
other funds
To recognize revenue from the General Fund transferred to a debt
service fund to record payments of interest and principal on general
obligation debt - ANSWER ✔✔Credit General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
Fund Budgetary Accounts - ANSWER ✔✔Estimated Revenues,
Appropriations, Estimated Other Financing Sources, Estimated Other
Financing Uses, Encumbrances
Fund Activity Accounts - ANSWER ✔✔Revenues, Expenditures,
Other Financing Sources, Other Financing Uses
Fund Revenues - ANSWER ✔✔Tax Revenues, Charges for Services
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Fund Expenditures - ANSWER ✔✔Current, Capital Outlay, Debt
Service
Other Financing Sources - ANSWER ✔✔Transfers In, Debt Proceeds
Other Financing Uses - ANSWER ✔✔Transfers Out
When a PO or Contract is issued as authorized by an appropriation the
government recognizes this commitment as - ANSWER ✔✔An
encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - ANSWER ✔✔DR Estimated
Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - ANSWER ✔✔DR
Encumbrances Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish
the Encumbrance)
Expert Verifed Ace the Test
Non-Spendable Fund Balance - ANSWER ✔✔Assets not in
spendable form-Inventories and prepaid items, principal of a permanent
fund which may not be spent, and assets held for sale and long-term
receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - ANSWER ✔✔Subject to constraints
imposed by external parties or law. Debt covenants (such as a
requirement for a sinking fund) or constraints imposed by legislation or
federal and state agencies, creditors, contributors or granting agencies
,Three Categories of net position section of the government-wide
Statement of Net Position - ANSWER ✔✔Restricted, Committed &
Assigned
Committed Fund Balance - ANSWER ✔✔Governing body formally
committed net resources to specific activities. Contractual obligations
outstanding. Board approval of large construction contracts would
typically represent commitment of the funds.
Assigned Fund Balance - ANSWER ✔✔Residual balances in funds
other than the General Fund or in the general fund that are intended for
identified purposes
Difference between Committed and Restricted - ANSWER
✔✔Committed constraint is imposed by a government upon itself
GASB standards state that rainy day funds may be classified as
committed only under specific circumstances which are - ANSWER
✔✔they are created by a resolution or ordinance that identifies the
specific circumstances under which the resources may be expended
Other financing sources consist of - ANSWER ✔✔transfers in from
other funds and proceeds of long-term borrowing
,Fund Revenues consist of - ANSWER ✔✔taxes, charges for
services, amounts provided by other entities such as state or federal
government
Other fund uses - ANSWER ✔✔Transfers of cash out of one fund to
other funds
To recognize revenue from the General Fund transferred to a debt
service fund to record payments of interest and principal on general
obligation debt - ANSWER ✔✔Credit General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
Fund Budgetary Accounts - ANSWER ✔✔Estimated Revenues,
Appropriations, Estimated Other Financing Sources, Estimated Other
Financing Uses, Encumbrances
Fund Activity Accounts - ANSWER ✔✔Revenues, Expenditures,
Other Financing Sources, Other Financing Uses
Fund Revenues - ANSWER ✔✔Tax Revenues, Charges for Services
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Fund Expenditures - ANSWER ✔✔Current, Capital Outlay, Debt
Service
Other Financing Sources - ANSWER ✔✔Transfers In, Debt Proceeds
Other Financing Uses - ANSWER ✔✔Transfers Out
When a PO or Contract is issued as authorized by an appropriation the
government recognizes this commitment as - ANSWER ✔✔An
encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - ANSWER ✔✔DR Estimated
Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - ANSWER ✔✔DR
Encumbrances Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish
the Encumbrance)
