AGA CGFM Learning checks Exam Questions with complete
Answers 2024/2025
Estimated Revenue not yet Realized recorded as DR or CR - correct answer
Generally net DR balance
When are appropriations considered to be expended - correct answer When
authorized liabilities are incurred
When does a PO or contract result in liability - correct answer When the goods
or services are received or a contract is executed
What is the JE for PO or Contract issued - correct answer DR Encumbrances
Control Account
CR Budgetary Fund Balance-Reserve for Encumbrances Account
What jes are necessary when goods or services are received or contracts are
executed - correct answer DR Budgetary Fund Balance - reserve for
Encumbrances Account
CR Encumbrances Control Account
DR Expenditures Control
CR Liability Account (for amount to be paid)
Character classification - correct answer Separates expenditures by the fiscal
period they are assumed to benefit and include current, capital outlay, and debt
service
,Functional classification - correct answer Reflect major activities or programs
of the government. Often performed by more than one department such as public
safety, which might include the police and fire departments
Classification methods - correct answer Character, functional, organizational
unit (public safety, education), activity, and object
Activity classification - correct answer Specific lines of work performed within a
department (solid waste collection, waste disposal)
Object classification - correct answer Item or service used (supplies, personnel
services, contracted services)
Is encumbrance procedure always needed? - correct answer No salaries and
wages are often not recorded as encumbrances
Permanent Funds - correct answer Account for resources provided under trust
agreements that are restricted so that only earnings may be expended for
purposes that benefit the public
Capital Projects Funds - correct answer Account for and report financial
resources taht are restricted, committed, or assigned to expenditure for capital
outlays.
Debt Service Funds - correct answer Account for and report financial
resources that are restricted, committed, or assigned to expenditure for principal
and interest
Special Revenue Funds - correct answer Account for and report the proceeds
of special revenue sources that are restricted or committed to expenditure for a
specified purpose other than debt service or capital projects
, General Fund - correct answer Accounts for and reports all financial resources
not accounted for and reported in other funds
Inter-fund transfers - correct answer transfer flows of cash or other assets
without a requirement for repayment.
Annual transfer of resources from the General Fund to a debt service fund -
correct answer Inter-fund transfer classified as other financing sources (debt
service fund) and other financing uses (General fund)
Inter-fund services provided and used - correct answer transactions involving
sales and purchases of goods and services between funds.
Sale of water from water utility (enterprise) fund to the General Fund - correct
answer Enterprise fund records a revenue General fund records an expenidture
Inter-fund reimbursements - correct answer repayments to the funds that
initially recorded expenditures or expenses by the funds responsible
General fund buys stamps that should have been charged to the special revenue
fund. Show reimbursement - correct answer DR Expenditure (Special revenue
fund)
CR Cash
DR Cash (General Fund)
CR Expenditure
Tax anticipation note (TAN) is received from local bank. Record JE for 200,000
TAN - correct answer DR Cash 200,000
Answers 2024/2025
Estimated Revenue not yet Realized recorded as DR or CR - correct answer
Generally net DR balance
When are appropriations considered to be expended - correct answer When
authorized liabilities are incurred
When does a PO or contract result in liability - correct answer When the goods
or services are received or a contract is executed
What is the JE for PO or Contract issued - correct answer DR Encumbrances
Control Account
CR Budgetary Fund Balance-Reserve for Encumbrances Account
What jes are necessary when goods or services are received or contracts are
executed - correct answer DR Budgetary Fund Balance - reserve for
Encumbrances Account
CR Encumbrances Control Account
DR Expenditures Control
CR Liability Account (for amount to be paid)
Character classification - correct answer Separates expenditures by the fiscal
period they are assumed to benefit and include current, capital outlay, and debt
service
,Functional classification - correct answer Reflect major activities or programs
of the government. Often performed by more than one department such as public
safety, which might include the police and fire departments
Classification methods - correct answer Character, functional, organizational
unit (public safety, education), activity, and object
Activity classification - correct answer Specific lines of work performed within a
department (solid waste collection, waste disposal)
Object classification - correct answer Item or service used (supplies, personnel
services, contracted services)
Is encumbrance procedure always needed? - correct answer No salaries and
wages are often not recorded as encumbrances
Permanent Funds - correct answer Account for resources provided under trust
agreements that are restricted so that only earnings may be expended for
purposes that benefit the public
Capital Projects Funds - correct answer Account for and report financial
resources taht are restricted, committed, or assigned to expenditure for capital
outlays.
Debt Service Funds - correct answer Account for and report financial
resources that are restricted, committed, or assigned to expenditure for principal
and interest
Special Revenue Funds - correct answer Account for and report the proceeds
of special revenue sources that are restricted or committed to expenditure for a
specified purpose other than debt service or capital projects
, General Fund - correct answer Accounts for and reports all financial resources
not accounted for and reported in other funds
Inter-fund transfers - correct answer transfer flows of cash or other assets
without a requirement for repayment.
Annual transfer of resources from the General Fund to a debt service fund -
correct answer Inter-fund transfer classified as other financing sources (debt
service fund) and other financing uses (General fund)
Inter-fund services provided and used - correct answer transactions involving
sales and purchases of goods and services between funds.
Sale of water from water utility (enterprise) fund to the General Fund - correct
answer Enterprise fund records a revenue General fund records an expenidture
Inter-fund reimbursements - correct answer repayments to the funds that
initially recorded expenditures or expenses by the funds responsible
General fund buys stamps that should have been charged to the special revenue
fund. Show reimbursement - correct answer DR Expenditure (Special revenue
fund)
CR Cash
DR Cash (General Fund)
CR Expenditure
Tax anticipation note (TAN) is received from local bank. Record JE for 200,000
TAN - correct answer DR Cash 200,000
