CERTIFIED GOVERNMENT FINANCIAL MANAGER (CGFM) EXAM
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
What is the purpose of the budget? -
ANSWER
Provides legal authority to allocate resources and perform services
It is an element of government fiscal policy
The policies adopted by public officials regarding monetary issues. The budget is generally an
expression of fiscal policy since it sets forth the resources that are to be used to fund operations. -
ANSWER
Fiscal policy
What are the phases in the budget cycle? -
ANSWER
Preparation
Legislative
Execution
Components of budget preparation -
ANSWER
Establishing priorities
Estimating revenues
Spending requests
Components of legislative phase -
, ANSWER
Review requests and revenues
Hold hearings
Public and interest group opinions are heard
Enact appropriations
What is budget execution? -
ANSWER
Conducting day to day operations
An action by the legislative body to establish interim appropriations because of the inability to pass
final appropriations -
ANSWER
Continuing resolution
How can budgets be organized? -
ANSWER
Organizational unit (most common)
-unit responsible for carrying out operations
Function
-Major service classification
Program
-specific activity in a function
Category or source
-type of revenue
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
What is the purpose of the budget? -
ANSWER
Provides legal authority to allocate resources and perform services
It is an element of government fiscal policy
The policies adopted by public officials regarding monetary issues. The budget is generally an
expression of fiscal policy since it sets forth the resources that are to be used to fund operations. -
ANSWER
Fiscal policy
What are the phases in the budget cycle? -
ANSWER
Preparation
Legislative
Execution
Components of budget preparation -
ANSWER
Establishing priorities
Estimating revenues
Spending requests
Components of legislative phase -
, ANSWER
Review requests and revenues
Hold hearings
Public and interest group opinions are heard
Enact appropriations
What is budget execution? -
ANSWER
Conducting day to day operations
An action by the legislative body to establish interim appropriations because of the inability to pass
final appropriations -
ANSWER
Continuing resolution
How can budgets be organized? -
ANSWER
Organizational unit (most common)
-unit responsible for carrying out operations
Function
-Major service classification
Program
-specific activity in a function
Category or source
-type of revenue
