CGFM Exam 1: Section 1 Questions and
Answers
Difference between a budget in public vs. private sector? - Answers -Public sector =
Law/Private sector = benchmark for performance and goals for growth
Primary control device in Govt? - Answers -budget
Financial Reports - Answers -primary mechanism by which public officials are able to
demonstrate accountability. They show how much was raised, how it was spent, and
whether spending was in compliance with the budget.
Fiscal Accountability - Answers -raising of resources and the allocation of those
resources to accomplish objectives. Officials are accountable for the resources raised
and how they are used.
Operational Accountability - Answers -Involves stewardship of public resources. Public
officials must ensure resources are used appropriately
Which branch is accountable to public for raising of resources and for determining how
those resources are to be used? - Answers -legislative
Tax equity - Answers -current generation of citizens are accountable for paying for
current-yr services; can't shift burden to future-yr taxpayers
State Authority - Answers -All the powers not set forth in the constitution are left to the
states
Govt Revenues are - Answers -involuntary revenue source - tax assessments, licenses,
fees, permits and user fees
legal accountability - Answers -the need to comply with various laws, rules and
regulations
performance accountability - Answers -ensuring that governments act in an efficient,
effective or economic manner
debt ceiling - Answers -an accountability mechanism that allows Congress to monitor
the financial effects of spending and tax policies
Answers
Difference between a budget in public vs. private sector? - Answers -Public sector =
Law/Private sector = benchmark for performance and goals for growth
Primary control device in Govt? - Answers -budget
Financial Reports - Answers -primary mechanism by which public officials are able to
demonstrate accountability. They show how much was raised, how it was spent, and
whether spending was in compliance with the budget.
Fiscal Accountability - Answers -raising of resources and the allocation of those
resources to accomplish objectives. Officials are accountable for the resources raised
and how they are used.
Operational Accountability - Answers -Involves stewardship of public resources. Public
officials must ensure resources are used appropriately
Which branch is accountable to public for raising of resources and for determining how
those resources are to be used? - Answers -legislative
Tax equity - Answers -current generation of citizens are accountable for paying for
current-yr services; can't shift burden to future-yr taxpayers
State Authority - Answers -All the powers not set forth in the constitution are left to the
states
Govt Revenues are - Answers -involuntary revenue source - tax assessments, licenses,
fees, permits and user fees
legal accountability - Answers -the need to comply with various laws, rules and
regulations
performance accountability - Answers -ensuring that governments act in an efficient,
effective or economic manner
debt ceiling - Answers -an accountability mechanism that allows Congress to monitor
the financial effects of spending and tax policies
