CGFM Test 1 2025 Questions and
Answers
Accountability - --Answer --Principle that, in a democracy, government
operates by the consent of the people. Therefore, it is responsible to, and must
answer to, the people for its actions and results, including the taking and using of
the people's resources
Allotment - --Answer --In the federal government, an agency's distribution
of apportioned budgetary authority to various components within the agency.
After the executive agency receives its apportionment, it allots budgetary authority
to specific components within the agency
Anti-Deficiency Act - --Answer --At the federal level, a law stating that
officials can be fined and/or jailed if they obligate the government to spend funds
beyond the legally authorized purpose, time, or amount
Apportionment - --Answer --Definitions may vary at different levels of
government. At the federal level, this is OMB's approval to use a portion of the
legislatively approved budgetary authority
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,Appropriated Budget - --Answer --Budget that has been passed by the
legislative branch (and signed by the chief executive, if required); has effect of law
Appropriation - --Answer --A legislative enactment (law, statute, or
ordinance) that created spending authority; the legal authority to incur expenses
and spend money
Attestation Engagement - --Answer --Engagement concerning with
examining, reviewing, or performing agreed-upon procedures on a limited subject
matter, or a limited assertion about a subject matter, and reporting on the results.
The subject matter may be financial or nonfinancial
Authorization - --Answer --Legislative enactment that approves programs;
prescribes what activities an agency may pursue if funding is available
Block Grant - --Answer --One type of formula grant. Block grants combine
several service categories into one grant and, thus, allow maximum flexibility to the
grantee to use the funds to meet local needs
Capital Budget - --Answer --Forecasts and controls spending for "big-ticket"
items that are acquired and used over a period of several years, such as
construction projects and major equipment purchases. Used at state and local
levels
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Capital Lease - --Answer --A lease of real property that meets defined
criteria requiring the government to report the property as if it were purchased
with the proceeds of long-term debt
Cash-flow budget - --Answer --Forecasts the timing, as well as amount of
cash flows, for a period. Use to project required cash levels
Categorical grant - --Answer --One type of formula grant that can be used
for a narrowly defined purpose
Central management agencies - --Answer --Government agencies that
provide central management services to other components. An example would be
a state government's human resource office (that serves all state agencies) or the
OMB at the federal level
Certificate of Excellence in Accountability Reporting (CEAR) - --Answer --
An AGA program that helps federal agencies and their components produce
effective, high-quality Performance and Accountability Reports/Agency Financial
Reports
Certificate of participation - --Answer --Form of share government
financing. In a typical form, several financial institutions share in a loan
arrangement with a government entity
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Answers
Accountability - --Answer --Principle that, in a democracy, government
operates by the consent of the people. Therefore, it is responsible to, and must
answer to, the people for its actions and results, including the taking and using of
the people's resources
Allotment - --Answer --In the federal government, an agency's distribution
of apportioned budgetary authority to various components within the agency.
After the executive agency receives its apportionment, it allots budgetary authority
to specific components within the agency
Anti-Deficiency Act - --Answer --At the federal level, a law stating that
officials can be fined and/or jailed if they obligate the government to spend funds
beyond the legally authorized purpose, time, or amount
Apportionment - --Answer --Definitions may vary at different levels of
government. At the federal level, this is OMB's approval to use a portion of the
legislatively approved budgetary authority
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Appropriated Budget - --Answer --Budget that has been passed by the
legislative branch (and signed by the chief executive, if required); has effect of law
Appropriation - --Answer --A legislative enactment (law, statute, or
ordinance) that created spending authority; the legal authority to incur expenses
and spend money
Attestation Engagement - --Answer --Engagement concerning with
examining, reviewing, or performing agreed-upon procedures on a limited subject
matter, or a limited assertion about a subject matter, and reporting on the results.
The subject matter may be financial or nonfinancial
Authorization - --Answer --Legislative enactment that approves programs;
prescribes what activities an agency may pursue if funding is available
Block Grant - --Answer --One type of formula grant. Block grants combine
several service categories into one grant and, thus, allow maximum flexibility to the
grantee to use the funds to meet local needs
Capital Budget - --Answer --Forecasts and controls spending for "big-ticket"
items that are acquired and used over a period of several years, such as
construction projects and major equipment purchases. Used at state and local
levels
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Capital Lease - --Answer --A lease of real property that meets defined
criteria requiring the government to report the property as if it were purchased
with the proceeds of long-term debt
Cash-flow budget - --Answer --Forecasts the timing, as well as amount of
cash flows, for a period. Use to project required cash levels
Categorical grant - --Answer --One type of formula grant that can be used
for a narrowly defined purpose
Central management agencies - --Answer --Government agencies that
provide central management services to other components. An example would be
a state government's human resource office (that serves all state agencies) or the
OMB at the federal level
Certificate of Excellence in Accountability Reporting (CEAR) - --Answer --
An AGA program that helps federal agencies and their components produce
effective, high-quality Performance and Accountability Reports/Agency Financial
Reports
Certificate of participation - --Answer --Form of share government
financing. In a typical form, several financial institutions share in a loan
arrangement with a government entity
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
