CGFO Accounting and Financial Reporting Exam Questions And Answers Latest Update
CGFO Accounting and Financial Reporting
Exam Questions And Answers Latest Update
What are the two most important financial documents in both public and private
organizations? - ✔✔✔-Budget and annual financial report.
What is the purpose of the accounting system? - ✔✔✔-To provide a record-keeping
framework in which to record (in journals) the transactions authorized by the
budget and to reconcile (in ledgers) their cumulative financial impact.
What are the six goals of accounting? - ✔✔✔-Provide financial information that is:
Understandable, reliable, relevant, comparable, consistent, and timely.
What are generally accepted accounting principles (GAAP)? - ✔✔✔-Standards
adopted by the accounting profession for recording and reporting transactions.
What is the role of the Governmental Accounting Standards Board (GASB)? - ✔✔✔-
To provide standards, interpretations, and technical bulletins for state and local
governments.
What are some topics of discussion concerning GAAP? - ✔✔✔-Basis of accounting,
treatment of fixed assets, and long-term debt.
What is one benefit of standardizing the accounting system? - ✔✔✔-Comparisons
can be made across governments and conclusions drawn on the relative financial
health of each.
What is another benefit of standardizing the accounting system? - ✔✔✔-Users can
interpret financial reports more easily.
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,CGFO Accounting and Financial Reporting Exam Questions And Answers Latest Update
What is the most important benefit of standardizing the accounting system? -
✔✔✔-Assuring users that a common set of rules is being applied to reporting
financial operations.
What is the purpose of the operating budget? - ✔✔✔-To plan for spending and
expected revenues.
What is the purpose of the capital budget? - ✔✔✔-To plan for spending on long-
term assets.
What is the purpose of the accounting system? - ✔✔✔-To record financial
transactions authorized by the budget.
What is the purpose of journals in the accounting system? - ✔✔✔-To record
transactions.
What is the purpose of ledgers in the accounting system? - ✔✔✔-To reconcile the
cumulative financial impact of transactions.
What is the role of generally accepted accounting principles (GAAP)? - ✔✔✔-To
guide the recording, reconciling, and reporting of transactions.
What is GAAP? - ✔✔✔-Generally Accepted Accounting Principles
What are the goals of GAAP? - ✔✔✔-Accuracy, reliability, and consistency in
reporting
How do businesses and governments report their results differently? - ✔✔✔-
Businesses consolidate results, governments report by funds
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, CGFO Accounting and Financial Reporting Exam Questions And Answers Latest Update
What is a fund in governmental accounting? - ✔✔✔-A fiscal and accounting entity
with a self-balancing set of accounts
How do funds function in governmental accounting? - ✔✔✔-Like self-contained
businesses with their own accounts and financial reports
What is Principle #1 of governmental accounting? - ✔✔✔-Maintain accounts on a
GAAP basis and comply with finance-related legal requirements
What is Principle #2 of governmental accounting? - ✔✔✔-Funds must be the basis
for maintaining accounting records
What is Principle #3 of governmental accounting? - ✔✔✔-Identify and define the
eleven basic types of funds used in governmental accounting
What is Principle #4 of governmental accounting? - ✔✔✔-Maintain a minimum
number of funds and only those required by law
What is Principle #5 of governmental accounting? - ✔✔✔-Maintain a distinction in
accounting records among capital assets of different funds
What is Principle #6 of governmental accounting? - ✔✔✔-Maintain historical cost of
capital assets and long-term debt in accounting records
What is Principle #7 of governmental accounting? - ✔✔✔-Record depreciation of
capital assets in accounting records
What is Principle #8 of governmental accounting? - ✔✔✔-Maintain a clear
distinction between long-term liabilities of specific funds and the general
government
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CGFO Accounting and Financial Reporting
Exam Questions And Answers Latest Update
What are the two most important financial documents in both public and private
organizations? - ✔✔✔-Budget and annual financial report.
What is the purpose of the accounting system? - ✔✔✔-To provide a record-keeping
framework in which to record (in journals) the transactions authorized by the
budget and to reconcile (in ledgers) their cumulative financial impact.
What are the six goals of accounting? - ✔✔✔-Provide financial information that is:
Understandable, reliable, relevant, comparable, consistent, and timely.
What are generally accepted accounting principles (GAAP)? - ✔✔✔-Standards
adopted by the accounting profession for recording and reporting transactions.
What is the role of the Governmental Accounting Standards Board (GASB)? - ✔✔✔-
To provide standards, interpretations, and technical bulletins for state and local
governments.
What are some topics of discussion concerning GAAP? - ✔✔✔-Basis of accounting,
treatment of fixed assets, and long-term debt.
What is one benefit of standardizing the accounting system? - ✔✔✔-Comparisons
can be made across governments and conclusions drawn on the relative financial
health of each.
What is another benefit of standardizing the accounting system? - ✔✔✔-Users can
interpret financial reports more easily.
©®™ Page 1
,CGFO Accounting and Financial Reporting Exam Questions And Answers Latest Update
What is the most important benefit of standardizing the accounting system? -
✔✔✔-Assuring users that a common set of rules is being applied to reporting
financial operations.
What is the purpose of the operating budget? - ✔✔✔-To plan for spending and
expected revenues.
What is the purpose of the capital budget? - ✔✔✔-To plan for spending on long-
term assets.
What is the purpose of the accounting system? - ✔✔✔-To record financial
transactions authorized by the budget.
What is the purpose of journals in the accounting system? - ✔✔✔-To record
transactions.
What is the purpose of ledgers in the accounting system? - ✔✔✔-To reconcile the
cumulative financial impact of transactions.
What is the role of generally accepted accounting principles (GAAP)? - ✔✔✔-To
guide the recording, reconciling, and reporting of transactions.
What is GAAP? - ✔✔✔-Generally Accepted Accounting Principles
What are the goals of GAAP? - ✔✔✔-Accuracy, reliability, and consistency in
reporting
How do businesses and governments report their results differently? - ✔✔✔-
Businesses consolidate results, governments report by funds
©®™ Page 2
, CGFO Accounting and Financial Reporting Exam Questions And Answers Latest Update
What is a fund in governmental accounting? - ✔✔✔-A fiscal and accounting entity
with a self-balancing set of accounts
How do funds function in governmental accounting? - ✔✔✔-Like self-contained
businesses with their own accounts and financial reports
What is Principle #1 of governmental accounting? - ✔✔✔-Maintain accounts on a
GAAP basis and comply with finance-related legal requirements
What is Principle #2 of governmental accounting? - ✔✔✔-Funds must be the basis
for maintaining accounting records
What is Principle #3 of governmental accounting? - ✔✔✔-Identify and define the
eleven basic types of funds used in governmental accounting
What is Principle #4 of governmental accounting? - ✔✔✔-Maintain a minimum
number of funds and only those required by law
What is Principle #5 of governmental accounting? - ✔✔✔-Maintain a distinction in
accounting records among capital assets of different funds
What is Principle #6 of governmental accounting? - ✔✔✔-Maintain historical cost of
capital assets and long-term debt in accounting records
What is Principle #7 of governmental accounting? - ✔✔✔-Record depreciation of
capital assets in accounting records
What is Principle #8 of governmental accounting? - ✔✔✔-Maintain a clear
distinction between long-term liabilities of specific funds and the general
government
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