CGFM Exam Section 2 - Legal
Foundations Exam Questions and
Answers
3 main purposes of Govt budget - Answer-(1) policy document; (2) Sets financial plan;
(3) Comms device
popular sovereignty - Answer-the people hold final authority over the government and
public policies with their vote
Article 1, section 8 - Answer-congress can impose taxes, pay for the military, borrow
money, and coin money
Article 1, section 9 - Answer-congress can't withdraw money from treasury without
appropriations
Article 1, section 10 - Answer-states can't print money or enter into treaties
legal constraints - Answer-derive from constitutions, statutes, ordinances
Statutes - Answer-(not constitution) limit the amount of debt the Fed government can
incur
Appropriated budget - Answer-provides legal authority to spend, as well as a legal
constraint on government spending
debt - Answer-planned borrowing to finance govt activities
deficit - Answer-when expenditures exceed revenue for a period
executive branch - Answer-implements the budget
Govt budget - Answer-is a control device that limits expenditure by Purpose, Time,
Amount (PTA)
Special funds - Answer-Tracks specially identified revenues, as well as dedicated uses
for those funds
(fed Level) appropriations can be made from? - Answer-general funds, trust funds, or
special funds.
Government Performance and Results Act (GPRA) - Answer-requires federal agencies
to create long-term strategic plans. The strategic plans are supported by annual
Foundations Exam Questions and
Answers
3 main purposes of Govt budget - Answer-(1) policy document; (2) Sets financial plan;
(3) Comms device
popular sovereignty - Answer-the people hold final authority over the government and
public policies with their vote
Article 1, section 8 - Answer-congress can impose taxes, pay for the military, borrow
money, and coin money
Article 1, section 9 - Answer-congress can't withdraw money from treasury without
appropriations
Article 1, section 10 - Answer-states can't print money or enter into treaties
legal constraints - Answer-derive from constitutions, statutes, ordinances
Statutes - Answer-(not constitution) limit the amount of debt the Fed government can
incur
Appropriated budget - Answer-provides legal authority to spend, as well as a legal
constraint on government spending
debt - Answer-planned borrowing to finance govt activities
deficit - Answer-when expenditures exceed revenue for a period
executive branch - Answer-implements the budget
Govt budget - Answer-is a control device that limits expenditure by Purpose, Time,
Amount (PTA)
Special funds - Answer-Tracks specially identified revenues, as well as dedicated uses
for those funds
(fed Level) appropriations can be made from? - Answer-general funds, trust funds, or
special funds.
Government Performance and Results Act (GPRA) - Answer-requires federal agencies
to create long-term strategic plans. The strategic plans are supported by annual
