CGFM EXAM 1 QUESTIONS AND
ANSWERS
Federalism - Correct Answers -Power is distributed among different levels of
government, no one level has complete authority
Sovereignty - Correct Answers -National government cant be sued by states or citizens
without its permission
Popular Sovereignty - Correct Answers -Citizens hold ultimate authority through the
ballot; even a sovereign government is accountable to citizens
Primary Purpose of Government - Correct Answers -Provide services to its citizens
10th Amendment - Correct Answers -Aka - reserved Clause
National government cant dictate the manner in which state and local programs should
operate
Why are state and local governments called labratories of democracy? - Correct
Answers -They experiment with policies and procedures that are later adopted at the
national level (upward influence)
At the state level, the legislative branch is sometimes referred to as? - Correct Answers
-General Assembly
Cities, towns & villages are ________________ governments - Correct Answers -
Municipal
What is the type of municipal government with two branches: executive (mayor), and
legislative (council) - Correct Answers -Mayor-Council form
The form of municipal government where the executive and legislative branches are
combined into the authority of commissioners - Correct Answers -Commission form
Type of municipal government where council members embody the legislative branch &
a manager serves at discretion of the council- not the voters - Correct Answers -Council
Manager Form
,The first 10 amendments are known as ______________ - Correct Answers -The Bill of
RIghts
How many articles are in the Constitution? - Correct Answers -Seven
No one branch of government can exercise complete control over another - Correct
Answers -Separation of Powers
Under _________________, courts can overturn laws if deemed unconstitional -
Correct Answers -Judicial Review
Since each house may pass a different version of a bill, differences are reconciled in
___________________ - Correct Answers -Conference Committees
Congress may override the presidents veto with a _______________ vote in BOTH
houses - Correct Answers -Two-Thirds
The 3 branches of government can further be divided into ____________________ -
Correct Answers -Components
Which branch has the most components - Correct Answers -Executive
Many government components take the form of ________________, either permanent
of temporary - Correct Answers -Commissions
The local government equivalent of a constitution - Correct Answers -Charter
Put the following in order per hierarchy of government authorities: Laws, Executive
Orders, Constitution, Rules & Regulations - Correct Answers -Constitution, Laws,
Executive Orders, Rules & Regulations
Which decision is most likely to be made during the "programming phase"
a- broad goals of government
b- whether to lease space of construct a new building
c- how to respond to an audit report
d- appropriate accounting methods - Correct Answers -B - Make or buy done decisions
done during programming phase
Which is not a typical output of programming phase?
a- most cost effective means to acheive objectives
b- specific, measurable objectives
c- level of resources requested
d- reprogramming requests - Correct Answers -D - reprogramming requests
, Typically, which type of budget will be in effect the longest?
a-operations
b- cash flow
c- capital - Correct Answers -C- Capital
What is the purpose of forecasting in regards to the budget? - Correct Answers -To
determine the likely level of economic activity & economic trends and how they will
impact revenue & expenses
What publication of the national government provides an effective guide to internal
controls & may be applied at all levels of government - Correct Answers -Standards for
Internal Control in the federal government (GAO)
Which of the following is least supported through financial accounting?
a- information about expenses and inter-governmental transfers
b- info about fund levels & disbursements
c-info about deposits and earmarked receipts
d- info about achievement of program outcomes - Correct Answers -D - this requires
non-financial information
Which entity provides detailed instructions for completing performance & accountability
reports at the federal level?
a- AGA
b- OMB
c- GASB
d- FASAB - Correct Answers -B- OM
3 types of accounting - Correct Answers -Financial, Managerial, Budgetary
Type of accounting that tracks affects of financial events on the financial position of an
entity - Correct Answers -Financial
Type of accounting that tracks commitments, obligations & expenditures by purpose,
time and amount - Correct Answers -Budgetary
Type of accounting used to gauge the cost effectiveness of operations to improve
efficiency - Correct Answers -Managerial (cost accounting)
Phase of management cycle used to communicate accomplishments & resources
expended - Correct Answers -Reporting
What entity defines GAAP for state/local governments - Correct Answers -
Governmental Accounting Standards Board (GASB)
ANSWERS
Federalism - Correct Answers -Power is distributed among different levels of
government, no one level has complete authority
Sovereignty - Correct Answers -National government cant be sued by states or citizens
without its permission
Popular Sovereignty - Correct Answers -Citizens hold ultimate authority through the
ballot; even a sovereign government is accountable to citizens
Primary Purpose of Government - Correct Answers -Provide services to its citizens
10th Amendment - Correct Answers -Aka - reserved Clause
National government cant dictate the manner in which state and local programs should
operate
Why are state and local governments called labratories of democracy? - Correct
Answers -They experiment with policies and procedures that are later adopted at the
national level (upward influence)
At the state level, the legislative branch is sometimes referred to as? - Correct Answers
-General Assembly
Cities, towns & villages are ________________ governments - Correct Answers -
Municipal
What is the type of municipal government with two branches: executive (mayor), and
legislative (council) - Correct Answers -Mayor-Council form
The form of municipal government where the executive and legislative branches are
combined into the authority of commissioners - Correct Answers -Commission form
Type of municipal government where council members embody the legislative branch &
a manager serves at discretion of the council- not the voters - Correct Answers -Council
Manager Form
,The first 10 amendments are known as ______________ - Correct Answers -The Bill of
RIghts
How many articles are in the Constitution? - Correct Answers -Seven
No one branch of government can exercise complete control over another - Correct
Answers -Separation of Powers
Under _________________, courts can overturn laws if deemed unconstitional -
Correct Answers -Judicial Review
Since each house may pass a different version of a bill, differences are reconciled in
___________________ - Correct Answers -Conference Committees
Congress may override the presidents veto with a _______________ vote in BOTH
houses - Correct Answers -Two-Thirds
The 3 branches of government can further be divided into ____________________ -
Correct Answers -Components
Which branch has the most components - Correct Answers -Executive
Many government components take the form of ________________, either permanent
of temporary - Correct Answers -Commissions
The local government equivalent of a constitution - Correct Answers -Charter
Put the following in order per hierarchy of government authorities: Laws, Executive
Orders, Constitution, Rules & Regulations - Correct Answers -Constitution, Laws,
Executive Orders, Rules & Regulations
Which decision is most likely to be made during the "programming phase"
a- broad goals of government
b- whether to lease space of construct a new building
c- how to respond to an audit report
d- appropriate accounting methods - Correct Answers -B - Make or buy done decisions
done during programming phase
Which is not a typical output of programming phase?
a- most cost effective means to acheive objectives
b- specific, measurable objectives
c- level of resources requested
d- reprogramming requests - Correct Answers -D - reprogramming requests
, Typically, which type of budget will be in effect the longest?
a-operations
b- cash flow
c- capital - Correct Answers -C- Capital
What is the purpose of forecasting in regards to the budget? - Correct Answers -To
determine the likely level of economic activity & economic trends and how they will
impact revenue & expenses
What publication of the national government provides an effective guide to internal
controls & may be applied at all levels of government - Correct Answers -Standards for
Internal Control in the federal government (GAO)
Which of the following is least supported through financial accounting?
a- information about expenses and inter-governmental transfers
b- info about fund levels & disbursements
c-info about deposits and earmarked receipts
d- info about achievement of program outcomes - Correct Answers -D - this requires
non-financial information
Which entity provides detailed instructions for completing performance & accountability
reports at the federal level?
a- AGA
b- OMB
c- GASB
d- FASAB - Correct Answers -B- OM
3 types of accounting - Correct Answers -Financial, Managerial, Budgetary
Type of accounting that tracks affects of financial events on the financial position of an
entity - Correct Answers -Financial
Type of accounting that tracks commitments, obligations & expenditures by purpose,
time and amount - Correct Answers -Budgetary
Type of accounting used to gauge the cost effectiveness of operations to improve
efficiency - Correct Answers -Managerial (cost accounting)
Phase of management cycle used to communicate accomplishments & resources
expended - Correct Answers -Reporting
What entity defines GAAP for state/local governments - Correct Answers -
Governmental Accounting Standards Board (GASB)
