AGA CGFM Prerequisite pretest Exam training Questions
with Rated A + solution Latest 2024/2025
Fund Balance - Committed - correct answer 1) constrained by formal action of
the governments highest level of decision making authority
Fund Balance - Assigned - correct answer 1) intent to be used for a specific
purpose, but not-formally obligated by decision making body
Fund Balance - Unassigned - correct answer 1) residual classification for all
other amounts
Reconciling GW Fund Balance to GW statement of Net Position - correct
answer Total governmental fund
Plus prepaid charges
Inventories
Deferred inflows of resources/revenues
Less long-term liabilities
Accrued interest
Equals change in net position of governmental activities
Budgetary Accounting - Estimated Revenues - correct answer Estimated
Revenues XXX
Appropriations XXX
Estimated Change in FB* XXX
* if use of fund balance reserves anticipated, this would be a credit
,Budgetary Accounting - Encumbrances - correct answer Encumbrance XXX
Use of FB (restricted, XXX
Committed, assigned)
** establishing an encumbrance ties up fund balances
Budgetary Accounting - Expenditures - correct answer Appropriations -
Expenditures - Encumbrances =
Available Balance
Budgetary Accounting - Closing Budget Year - correct answer Appropriations
XXX
Est Change in FB XXX
Estimated Revenue XXX
Formulation of President's Budget
(Circular A-11) - correct answer 1) Budget/fiscal policy/guidance given to
agencies
(Spring, 18 months prior to start of fiscal year)
2) Agencies prepare requests
3) Requests submitted to OMB
(Fall, 12 months prior to fiscal year)
4) Requests analyzed by OMB
5) Agency proposals finalized and comprehensive package prepared
6) Presidents budget submitted to Congress
(first Monday in Feb for the fiscal year beginning Oct 1)
,Formulation of President's Budget (Cont.) - correct answer begins 18 months
before start of fiscal year
* includes budget year and following four years
* economic outlook projections provided by Council of Economic Advisers, OMB,
Dept of Treasury
Congressional Action on Budget - correct answer ** programs first authorized,
then funds appropriated
** first House and Senate have to agree on a Budget Resolution, setting receipts
and budgetary authority by functional category
** law requires passing by April 15
** enacted as a series of individual appropriations bills (traditionally 12, one for
each subcommittee in the House and Senate), initiated in the House and
providing budgetary authority to incur financial obligation on federal funds.
Conference Committees - correct answer Resolve differences between the
House and Senate appropriations bills, then Congress sends it to the president
for approval. POTUS can only approve or veto the entire bill.
Permanent Law Spending - correct answer 2/3 of federal gov't spending does
not go through the appropriation process as it is mandatory spending approved
through permanent laws - covers Social Security, Meidcare, Medicaid,
Unemployment insurance, federal employee retirement.
Mandatory spending adjusted by Congress via reconciliation process, creation of
an omnibus reconciliation bill
, Treasury Warrant - Appropriation - correct answer Once a budget has been
passed, the Treasury has the initial responsibility to track the appropriation by
issuing an appropriation warrant, establishing an account equal to the amount of
the appropriation and coding for drawing against the appropriation.
Agency Code, Period, Account Symbol
XXXY000
Anti-Deficiency Act - Apportionment process - correct answer Managed by
OMB, agencies have to submit spending plans and apportionment requests on a
schedule:
*Cat A apportionment - for operating items, funding apportioned by time period
(e.g., quarterly)
*Cat B apportionment - by program/ activity/project
*Cat AB - combo of timing and project
*Cat C - for future years
Allotment - correct answer Agencies distribute apportionment to organizational
units via allotments and sub-allotments
Federal Budget Increases/Decreases following approval - correct answer
Supplemental appropriations - additional funding approved by Congress
Deferrals - temporary withholding of budget by POTUS, unless overturned by
Congress (may not be done for policy reasons)
Recessions - permanently cancel budget authority, proposed by POTUS, must
be passed by Congress (only approved about 1/3 of the time since enactment)
with Rated A + solution Latest 2024/2025
Fund Balance - Committed - correct answer 1) constrained by formal action of
the governments highest level of decision making authority
Fund Balance - Assigned - correct answer 1) intent to be used for a specific
purpose, but not-formally obligated by decision making body
Fund Balance - Unassigned - correct answer 1) residual classification for all
other amounts
Reconciling GW Fund Balance to GW statement of Net Position - correct
answer Total governmental fund
Plus prepaid charges
Inventories
Deferred inflows of resources/revenues
Less long-term liabilities
Accrued interest
Equals change in net position of governmental activities
Budgetary Accounting - Estimated Revenues - correct answer Estimated
Revenues XXX
Appropriations XXX
Estimated Change in FB* XXX
* if use of fund balance reserves anticipated, this would be a credit
,Budgetary Accounting - Encumbrances - correct answer Encumbrance XXX
Use of FB (restricted, XXX
Committed, assigned)
** establishing an encumbrance ties up fund balances
Budgetary Accounting - Expenditures - correct answer Appropriations -
Expenditures - Encumbrances =
Available Balance
Budgetary Accounting - Closing Budget Year - correct answer Appropriations
XXX
Est Change in FB XXX
Estimated Revenue XXX
Formulation of President's Budget
(Circular A-11) - correct answer 1) Budget/fiscal policy/guidance given to
agencies
(Spring, 18 months prior to start of fiscal year)
2) Agencies prepare requests
3) Requests submitted to OMB
(Fall, 12 months prior to fiscal year)
4) Requests analyzed by OMB
5) Agency proposals finalized and comprehensive package prepared
6) Presidents budget submitted to Congress
(first Monday in Feb for the fiscal year beginning Oct 1)
,Formulation of President's Budget (Cont.) - correct answer begins 18 months
before start of fiscal year
* includes budget year and following four years
* economic outlook projections provided by Council of Economic Advisers, OMB,
Dept of Treasury
Congressional Action on Budget - correct answer ** programs first authorized,
then funds appropriated
** first House and Senate have to agree on a Budget Resolution, setting receipts
and budgetary authority by functional category
** law requires passing by April 15
** enacted as a series of individual appropriations bills (traditionally 12, one for
each subcommittee in the House and Senate), initiated in the House and
providing budgetary authority to incur financial obligation on federal funds.
Conference Committees - correct answer Resolve differences between the
House and Senate appropriations bills, then Congress sends it to the president
for approval. POTUS can only approve or veto the entire bill.
Permanent Law Spending - correct answer 2/3 of federal gov't spending does
not go through the appropriation process as it is mandatory spending approved
through permanent laws - covers Social Security, Meidcare, Medicaid,
Unemployment insurance, federal employee retirement.
Mandatory spending adjusted by Congress via reconciliation process, creation of
an omnibus reconciliation bill
, Treasury Warrant - Appropriation - correct answer Once a budget has been
passed, the Treasury has the initial responsibility to track the appropriation by
issuing an appropriation warrant, establishing an account equal to the amount of
the appropriation and coding for drawing against the appropriation.
Agency Code, Period, Account Symbol
XXXY000
Anti-Deficiency Act - Apportionment process - correct answer Managed by
OMB, agencies have to submit spending plans and apportionment requests on a
schedule:
*Cat A apportionment - for operating items, funding apportioned by time period
(e.g., quarterly)
*Cat B apportionment - by program/ activity/project
*Cat AB - combo of timing and project
*Cat C - for future years
Allotment - correct answer Agencies distribute apportionment to organizational
units via allotments and sub-allotments
Federal Budget Increases/Decreases following approval - correct answer
Supplemental appropriations - additional funding approved by Congress
Deferrals - temporary withholding of budget by POTUS, unless overturned by
Congress (may not be done for policy reasons)
Recessions - permanently cancel budget authority, proposed by POTUS, must
be passed by Congress (only approved about 1/3 of the time since enactment)
