CGFM EXAM 1 QUESTIONS
WITH VERIFIED ANSWERS 2024
UPDATED BY EXPERTS
What entity defines GAAP for national government - CORRECT ANSWER>>>>Federal
Accounting Standards Advisory Board (FASAB)
Reports with condensed financial information in easy to read format - CORRECT
ANSWER>>>>Popular, Summary and/or Citizen Report
Reports that link financial resources to the service outputs & outcomes achieved with
those resources - CORRECT ANSWER>>>>Performance Reports
AGA recommended report to communicate the business of government to the public -
CORRECT ANSWER>>>>Citizen Centric Report (CCR)
At the federal level, performance reporting is ______________ - CORRECT
ANSWER>>>>Required
Report that combines financial data & performance measures - CORRECT
ANSWER>>>>Performance & Accountability Report (PAR)
What act calls for the establishment of government wide financial data standards -
CORRECT ANSWER>>>>Data Transperancy & Accountability Act (DATA)
3 differences between internal & external reports - CORRECT ANSWER>>>>timing -
internal prepared as needed
purpose - internal help officials make decision to improve operations
structure- internal take any form useful to management
What entity establishes standards for financial audits, generally? - CORRECT
ANSWER>>>>American Institute of Certified Public Accountants (AICPA)
Citizen action that requires legislative action to be presented to voters for approval -
CORRECT ANSWER>>>>Referendum
What are three tools used by the federal reserve to moderate the supply and cost of
money? - CORRECT ANSWER>>>>1- buying and selling government bonds
2-altering amount of reserves that other banks keep at the federal reserve
3- changing the interest rate at which it loans funds to other institutions
,What are the fiscal and monetary powers of governments, there are 4 - CORRECT
ANSWER>>>>Tax citizens and corporate entities
Establish budgets and spend public funds
Borrow funds for government operations and capital investments
Create money (only at national level)
Which of the following statements is NOT true
A- members of a tribal council must generally pay state income tax on money earned in
tribal lands
B- members of a tribal council must generally pay federal income tax, though some
exemptions apply
C- a tribal council may levy and collect taxes in activities conducted in tribal
(reservation) land
D- tribal lands are exempt from local real estate taxes - CORRECT ANSWER>>>>A
What is the difference between local charters and local ordinances - CORRECT
ANSWER>>>>Charters are the basic authority to operate, like a constitution. Ordinance
is a local law, like a state statute or US code
Describe the distinction between policy and administration - CORRECT
ANSWER>>>>Executive branch components implement policies when they administer
programs.
Legislative branch develops policies that establish/guide programs
Citizen action that enables voters to remove elected officials from office - CORRECT
ANSWER>>>>Recall
Type of government entity that performs multiple functions - CORRECT
ANSWER>>>>General purpose
Type of government entity that performs just one or two functions - CORRECT
ANSWER>>>>Special purpose
What are the two types of special purpose local governments - CORRECT
ANSWER>>>>School district
Special district
What are the 3 types of general purpose local governments? - CORRECT
ANSWER>>>>County
Municipality (cities/towns)
Township (historical)
Type of government entity that blends characteristics of government and not-for-profit
organizations - CORRECT ANSWER>>>>Quasi-Governmental (government
corporations)
, Who issues the yellow book - CORRECT ANSWER>>>>Government Accountability
Office (GAO)
Another term for Generally Accepted Government Auditing Standards (GAGAS) -
CORRECT ANSWER>>>>Yellow Book
3 types of external audits - CORRECT ANSWER>>>>Financial
Attestation Engagements
Performance Audits
Type of external audit that provides reasonable assurance on whether financial
statements are presented fairly in conformity with GAAP - CORRECT
ANSWER>>>>Financial Audit
What is an attestation engagement? - CORRECT ANSWER>>>>Examine, review, or
perform agreed-upon procedures on a limited subject matter & report on the results, can
be financial or non-financial
Principle that taxes should treat taxpayers fairly - CORRECT ANSWER>>>>Tax equity
Different taxpayers with the same income level should pay the same amount of tax -
CORRECT ANSWER>>>>horitzontal equity
Taxpayers with different income levels should pay different amounts of tax - CORRECT
ANSWER>>>>vertical equity
US Federal Income Taxes are progress or regressive? - CORRECT
ANSWER>>>>Progressive - those with higher incomes pay a higher proportion of their
taxable income due to a higher tax rate
Sales tax is progressive/regressive? - CORRECT ANSWER>>>>Regressive - single
sales tax rate applies to everyone
"Benefit Received" in tax policy decisions - CORRECT ANSWER>>>>Deciding to
establish new tax or raise existing taxes
Also, deciding whether a specific group should bear a specific tax burden
Collection efficiency in tax policy - CORRECT ANSWER>>>>Cost of collecting the tax
Should be minimal compared to the revenue generated
How governments accomplish social goals with taxes (4) - CORRECT
ANSWER>>>>Exemptions
Deductions
Credits
WITH VERIFIED ANSWERS 2024
UPDATED BY EXPERTS
What entity defines GAAP for national government - CORRECT ANSWER>>>>Federal
Accounting Standards Advisory Board (FASAB)
Reports with condensed financial information in easy to read format - CORRECT
ANSWER>>>>Popular, Summary and/or Citizen Report
Reports that link financial resources to the service outputs & outcomes achieved with
those resources - CORRECT ANSWER>>>>Performance Reports
AGA recommended report to communicate the business of government to the public -
CORRECT ANSWER>>>>Citizen Centric Report (CCR)
At the federal level, performance reporting is ______________ - CORRECT
ANSWER>>>>Required
Report that combines financial data & performance measures - CORRECT
ANSWER>>>>Performance & Accountability Report (PAR)
What act calls for the establishment of government wide financial data standards -
CORRECT ANSWER>>>>Data Transperancy & Accountability Act (DATA)
3 differences between internal & external reports - CORRECT ANSWER>>>>timing -
internal prepared as needed
purpose - internal help officials make decision to improve operations
structure- internal take any form useful to management
What entity establishes standards for financial audits, generally? - CORRECT
ANSWER>>>>American Institute of Certified Public Accountants (AICPA)
Citizen action that requires legislative action to be presented to voters for approval -
CORRECT ANSWER>>>>Referendum
What are three tools used by the federal reserve to moderate the supply and cost of
money? - CORRECT ANSWER>>>>1- buying and selling government bonds
2-altering amount of reserves that other banks keep at the federal reserve
3- changing the interest rate at which it loans funds to other institutions
,What are the fiscal and monetary powers of governments, there are 4 - CORRECT
ANSWER>>>>Tax citizens and corporate entities
Establish budgets and spend public funds
Borrow funds for government operations and capital investments
Create money (only at national level)
Which of the following statements is NOT true
A- members of a tribal council must generally pay state income tax on money earned in
tribal lands
B- members of a tribal council must generally pay federal income tax, though some
exemptions apply
C- a tribal council may levy and collect taxes in activities conducted in tribal
(reservation) land
D- tribal lands are exempt from local real estate taxes - CORRECT ANSWER>>>>A
What is the difference between local charters and local ordinances - CORRECT
ANSWER>>>>Charters are the basic authority to operate, like a constitution. Ordinance
is a local law, like a state statute or US code
Describe the distinction between policy and administration - CORRECT
ANSWER>>>>Executive branch components implement policies when they administer
programs.
Legislative branch develops policies that establish/guide programs
Citizen action that enables voters to remove elected officials from office - CORRECT
ANSWER>>>>Recall
Type of government entity that performs multiple functions - CORRECT
ANSWER>>>>General purpose
Type of government entity that performs just one or two functions - CORRECT
ANSWER>>>>Special purpose
What are the two types of special purpose local governments - CORRECT
ANSWER>>>>School district
Special district
What are the 3 types of general purpose local governments? - CORRECT
ANSWER>>>>County
Municipality (cities/towns)
Township (historical)
Type of government entity that blends characteristics of government and not-for-profit
organizations - CORRECT ANSWER>>>>Quasi-Governmental (government
corporations)
, Who issues the yellow book - CORRECT ANSWER>>>>Government Accountability
Office (GAO)
Another term for Generally Accepted Government Auditing Standards (GAGAS) -
CORRECT ANSWER>>>>Yellow Book
3 types of external audits - CORRECT ANSWER>>>>Financial
Attestation Engagements
Performance Audits
Type of external audit that provides reasonable assurance on whether financial
statements are presented fairly in conformity with GAAP - CORRECT
ANSWER>>>>Financial Audit
What is an attestation engagement? - CORRECT ANSWER>>>>Examine, review, or
perform agreed-upon procedures on a limited subject matter & report on the results, can
be financial or non-financial
Principle that taxes should treat taxpayers fairly - CORRECT ANSWER>>>>Tax equity
Different taxpayers with the same income level should pay the same amount of tax -
CORRECT ANSWER>>>>horitzontal equity
Taxpayers with different income levels should pay different amounts of tax - CORRECT
ANSWER>>>>vertical equity
US Federal Income Taxes are progress or regressive? - CORRECT
ANSWER>>>>Progressive - those with higher incomes pay a higher proportion of their
taxable income due to a higher tax rate
Sales tax is progressive/regressive? - CORRECT ANSWER>>>>Regressive - single
sales tax rate applies to everyone
"Benefit Received" in tax policy decisions - CORRECT ANSWER>>>>Deciding to
establish new tax or raise existing taxes
Also, deciding whether a specific group should bear a specific tax burden
Collection efficiency in tax policy - CORRECT ANSWER>>>>Cost of collecting the tax
Should be minimal compared to the revenue generated
How governments accomplish social goals with taxes (4) - CORRECT
ANSWER>>>>Exemptions
Deductions
Credits
