CGFM Exam 3 - Financial Management
Functions Exam 2025 Questions and
Answers
Prompt Payment Act - --Answer --A federal law that requires federal
agencies to pay interest to companies on bills not paid within 30 days of invoice or
completion of work.
Cash Management Improvement Act - --Answer --passed to improve the
transfer of federal funds between the federal government and the states, territories,
and the District of Columbia
31 CFR Part 2018 Management of Federal Agency Disbursements - --
Answer --requires federal agencies to disburse payments via electronic funds
transfer, with few exceptions
Lockbox - --Answer --An arrangement whereby receipts are mailed directly
from payers to a post office box that is serviced by a designated bank
float - --Answer --the period between the time the check is issued and the
time it is presented for payment at the payer's bank
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Zero Balance Account (ZBA) - --Answer --account into which cash from a
master account is transferred at the close of the banking day to cover checks and
debits presented for payment
Concentration Bank Services - --Answer --expediting the consolidation of
geographically dispersed deposits into a central account
Collection services - --Answer --includes over the counter collection for tax
and utility bills, processing paper checks, operating a lockbox
Payment Services - --Answer --includes the processing paper checks as well
as providing for electronic payments through the automated clearing house or via
wire transfers
short-term borrowings - --Answer --lines of credit or revolving credit
facilities or as loans to fund short term cash needs
compensating balance - --Answer --A requirement by some banks requiring
depositors to maintain minimum cash balances in their bank accounts.
external shared services providers - --Answer --departments/ agencies who
provide services to organizations outside of their own
internal shared services providers - --Answer --larger agencies that decided
to consolidate, standardize and streamline financial and other business processes
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Functions Exam 2025 Questions and
Answers
Prompt Payment Act - --Answer --A federal law that requires federal
agencies to pay interest to companies on bills not paid within 30 days of invoice or
completion of work.
Cash Management Improvement Act - --Answer --passed to improve the
transfer of federal funds between the federal government and the states, territories,
and the District of Columbia
31 CFR Part 2018 Management of Federal Agency Disbursements - --
Answer --requires federal agencies to disburse payments via electronic funds
transfer, with few exceptions
Lockbox - --Answer --An arrangement whereby receipts are mailed directly
from payers to a post office box that is serviced by a designated bank
float - --Answer --the period between the time the check is issued and the
time it is presented for payment at the payer's bank
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Zero Balance Account (ZBA) - --Answer --account into which cash from a
master account is transferred at the close of the banking day to cover checks and
debits presented for payment
Concentration Bank Services - --Answer --expediting the consolidation of
geographically dispersed deposits into a central account
Collection services - --Answer --includes over the counter collection for tax
and utility bills, processing paper checks, operating a lockbox
Payment Services - --Answer --includes the processing paper checks as well
as providing for electronic payments through the automated clearing house or via
wire transfers
short-term borrowings - --Answer --lines of credit or revolving credit
facilities or as loans to fund short term cash needs
compensating balance - --Answer --A requirement by some banks requiring
depositors to maintain minimum cash balances in their bank accounts.
external shared services providers - --Answer --departments/ agencies who
provide services to organizations outside of their own
internal shared services providers - --Answer --larger agencies that decided
to consolidate, standardize and streamline financial and other business processes
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
