CGFM Exam 3: Section 1, Chapter 1 -
Financial Management Functions Exam
2025 Questions and Answers
Financial management functions - --Answer --1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - --Answer --1) collecting money when
due
2) making payments when owed
3) investment of idle cash
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, Prompt Payment Act (Federal) - --Answer --enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid
within 30 days after receipt and acceptance of material and/or services - or - after
receipt of a proper invoice whichever is later. When payments are not made timely,
interest should be automatically paid. Notes that govt should take discounts on
their payables via timely invoices when possible.
Cash management improvement act 1990 - --Answer --enacted to improve
the transfer of federal funds between federal and states and territories. Objectives
are to (1) minimize the time of transfer and payout for program purposes, (2)
ensure funds are available when requested, and (3) assess an interest liability to the
Fed govt and/or states for the lost value of funds.
31 CFR Part 208 Management of Federal Agency Disbursements - --
Answer --requires Fed agencies to disburse payments via electronic funds
transfer
"float" - --Answer --the period between the time the check is issued and the
time it is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt? - --Answer --US
Dept of Treasury
National Debt - --Answer --borrowings less repayment
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Financial Management Functions Exam
2025 Questions and Answers
Financial management functions - --Answer --1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - --Answer --1) collecting money when
due
2) making payments when owed
3) investment of idle cash
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Prompt Payment Act (Federal) - --Answer --enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid
within 30 days after receipt and acceptance of material and/or services - or - after
receipt of a proper invoice whichever is later. When payments are not made timely,
interest should be automatically paid. Notes that govt should take discounts on
their payables via timely invoices when possible.
Cash management improvement act 1990 - --Answer --enacted to improve
the transfer of federal funds between federal and states and territories. Objectives
are to (1) minimize the time of transfer and payout for program purposes, (2)
ensure funds are available when requested, and (3) assess an interest liability to the
Fed govt and/or states for the lost value of funds.
31 CFR Part 208 Management of Federal Agency Disbursements - --
Answer --requires Fed agencies to disburse payments via electronic funds
transfer
"float" - --Answer --the period between the time the check is issued and the
time it is presented for payment at the payer's bank
Who is responsible for cash management in the Fed govt? - --Answer --US
Dept of Treasury
National Debt - --Answer --borrowings less repayment
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
