CMFO QUESTIONS AND CORRECT ANSWERS

CMFO QUESTIONS AND CORRECT
ANSWERS
AccountsA2ReceivableA2-A2A/RA2-A2Ans--
AmountsA2owedA2toA2youA2byA2otherA2parties,A2suchA2asA2taxpayers,A2otherA2agenciesA2&
A2financialA2institutionsA2andA2shownA2onA2itsA2balanceA2sheetA2asA2anA2asset


ChartA2ofA2AccountsA2-A2Ans--
TheA2standardA2systemA2ofA2accountA2titlesA2keptA2forA2accountingA2records
-A2FlexibleA2ChartA2ofA2AccountsA2(FCOA)
-UseA2toA2organizeA2andA2segregateA2expenditures,A2revenues,A2assets,A2andA2liabilities

AccountingA2EquationA2-A2Ans--
AssetA2=A2LiabilitiesA2(reserve)A2+A2FundA2BalanceA2(surplus)
A2DrA2=A2CrA2+A2Cr
-A2BalanceA2SheetA2basedA2onA2accountingA2equation
-A2BalanceA2SheetA2presentsA2assetA2onA2theA2left-handA2side

StepsA2InA2aA2TransactionA2(AccountingA2Entries)A2-A2Ans--
1.A2BusinessA2TransactionA2(SourceA2Document)
2.A2JournalA2Entry
3.A2GeneralA2Ledger
4.A2TrialA2Balance
5.A2FinanceA2StatementsA2(BalanceA2Sheet,A2IncomeA2Sheet)

AccountsA2Payable,A2A/PA2-A2Ans--
TheA2billsA2yourA2municipalitiesA2owesA2toA2vendorsA2andA2otherA2agenciesA2suchA2asA2th
eA2schoolA2district,A2county,A2andA2specialA2district,A2shownA2onA2theA2organization'sA2bal
anceA2sheetA2asA2aA2liability

AccrualA2MethodA2-A2Ans--
AA2systemA2thatA2recordsA2theA2salesA2(anyA2types),A2regardlessA2whenA2paymentA2isA2m
ade.A2
-
A2ExpenditureA2isA2recordedA2whenA2goodsA2orA2servicesA2areA2received,A2thoughA2theA2p
aymentA2mayA2beA2deferred

BalanceA2SheetA2-A2Ans---
FinancialA2"Snapshot"A2ofA2theA2organizationA2atA2aA2givenA2dateA2inA2time
-ItA2listsA2assets,A2liabilities,A2andA2fundA2balance
-RealA2lifeA2exampleA2ofA2accountingA2equation

AssetsA2-A2Ans--ItemsA2ofA2valueA2heldA2byA2theA2organization

, AccountingA2SystemA2-A2Ans--
TheA2totalA2structureA2ofA2recordsA2andA2procedureA2whichA2record,A2classifyA2andA2report
A2informationA2onA2theA2financialA2positionA2andA2operationsA2ofA2aA2governmentialA2unitA2
orA2anyA2ofA2itsA2fundsA2andA2organizationalA2components

AdjustingA2EntriesA2-A2Ans--
JournalA2entriesA2usuallyA2madeA2atA2endA2ofA2anA2accountingA2peroidA2toA2allocateA2reve
nueA2andA2expendituresA2toA2theA2periodA2inA2whichA2theyA2actuallyA2occurred

CashA2MethodA2-A2Ans--RevenueA2isA2recordedA2whenA2cashA2isA2received
ExpendituresA2isA2recordedA2whenA2checkA2isA2writtenA2toA2aA2vendor

A/PA2LedgerA2-A2Ans--HelpsA2controlA2expendituresA2andA2payables
-AtA2month'sA2end,A2A/PA2ledgerA2isA2reconciledA2withA2A/PA2controlA2account

ModifiedA2AccrualA2-A2Ans--OtherA2ComprehensiveA2BasisA2ofA2AccountingA2(OCBOA)
RevenueA2isA2recordedA2whenA2cashA2isA2inA2hand
ExpendituresA2recordedA2whenA2purchaseA2isA2made

A/RA2LedgerA2-A2Ans--
MaintainedA2forA2eachA2individualA2orA2entityA2theA2municipalA2expectsA2paymentsA2from

CashA2FlowA2ForecastA2-A2Ans--
IdentifyA2cashA2flowingA2inA2andA2outA2ofA2organizationA2overA290A2dayA2period

CapitalA2ExpendituresA2-A2Ans--
TheA2acquisitionA2orA2improvementA2ofA2equipment,A2facilities,A2roads,A2parks,A2sewerA2a
ndA2waterA2equipment
-A2MustA2haveA2usefulA2lifeA2ofA25A2years

CashA2-A2Ans--
Currency,A2coin,A2checks,A2moneyA2orders,A2andA2banker'sA2draftA2inA2handA2forA2deposit

BasicA2LawsA2CFOA2MustA2ComplyA2WithA2-A2Ans--NJSAA240A:A22A2LocalA2BondA2Law
A24A2LocalA2BudgetA2Law
A25A2LocalA2FiscalA2AffairsA2Law
A211A2LocalA2PublicA2ContractsA2Law


SchoolA2budgetA2-A2Ans--SchoolA2budgetsA2doA2notA2haveA2toA2beA2balanced
NoA2requiredA2surplus

NJA2DepartmentA2ofA2EducationA2BoardA2-A2Ans--13A2MemberA2board
NoA2compensation
6A2yearA2terms
AtA2LeastA23A2women
NoA22A2membersA2fromA2theA2sameA2count