CGFM - Exam 1: Government Environment Questions With
Complete Solutions
"Power of the Purse" Correct Answers Executive branch
components can only spend what has been authorized and
appropriated by the legislative branch.
(Budget) Appropriation Correct Answers A part of the
congressional budgeting process that involves determining how
many dollars will be spent in a given year on a particular set of
gov't activities.
3 Branches Correct Answers 1) Legislative
2) Executive
3) Judicial
3 Levels Correct Answers 1) National
2) State
3) Local
The primary purpose of each is to provide services to citizens.
Separate and distinct, yet they may coordinate their efforts.
Ability to Pay Correct Answers Principle of taxation in which
those with higher incomes pay more taxes than those with lower
incomes, regardless of the number of government services they
receive.
Accomplishments Correct Answers Part of SEA reporting. The
outputs and outcomes as a result of operations.
,Account Structures Correct Answers Limit and classify gov't
spending. May be based on program or object class.
Accountability Correct Answers A gov'ts responsibility to its
population, usually by periodic popular elections and by
parliament's having the power to dismiss the government by
passing a motion of no confidence.The major actions taken by
government must be known and understood by the citizenry.
Accounting Correct Answers Used by gov't as a form of
control., Planning, recording, analyzing, and interpreting
financial information. Inhibit fraud and ensure funds are
available when bills come due.
Advanced Refunding Correct Answers The proceeds from the
new debt issue are not directly applied to the old debt. Rather,
the new debt proceeds are used to buy securities that are placed
in escrow; interest from the escrow acct is used to retire the old
debt.
AICPA Correct Answers The American Institute of Certified
Public Accountants. Establishes GAAS.
Apportionments Correct Answers Dispersal of budgetary
authority to an agency or program by the central management
agency--OMB--to support approved programs.
Appropriated Budget Correct Answers Provides legal authority
to spend as well as a legal constraint on government spending.
,Appropriations Correct Answers Budget laws passed by
Congress.
Areas of Overlap in Governmental Responsibilities Correct
Answers Nat'l and state gov'ts exercise authority in civil
defense and the Nat'l Guard. For example, during peacetime,
Nat'l Guard units fall under the direction of state governors and
meet the needs of the state. During nat'l emergencies, these units
are under command of the President, Commander in Chief. State
and local gov'ts have some responsibility for traffic safety. All 3
levels impact public education.
Article I Correct Answers Defines powers of the legislative
branch. Power to enact law, collect taxes, coin money, raise
armies and declare war.
Article II Correct Answers Defines the role and power of the
presidency and executive branch. Power to command armed
forces, grant pardons for offenses against the U.S., and to
appoint ambassadors and Supreme Court judges with the advice
and consent of the Senate.
Article III Correct Answers Defines power of judicial branch.
Power over legal cases arising under the U.S. Constitution and
related to treaties and ambassadors; controversies between two
or more states; and controversies between citizens of different
states.
Attestation Engagements Correct Answers Examining,
reviewing, or performing agreed-upon procedures on a limited
, subject matter, or an assertion about a limited subject matter
(financial or nonfinancial), and reporting on the results.
Auditing Correct Answers Final phase of gov't management
cycle. Provides information that is used to hold gov't
accountable and revise priorities during future planning efforts.
Balanced Budget Correct Answers Annual budget in which
expenditures equal revenues.
BANs Correct Answers Bond Anticipation Notes. Short-term
financing for capital projects.
Benchmarking Correct Answers Comparing indicators, such as
ratios, across entities or across different fiscal years.
Benefit of Sustainability Assessment Correct Answers Alerts
public officials and citizens to the need for policy changes
before the "fix" becomes too costly to implement.
Benefit Received Correct Answers The theory that consumers
should contribute taxes in proportion to the benefits received
from the services of the government.
Benefits of Effective FMS Correct Answers Promotes
accountability & efficiency and supports decision-making.
Block Grants Correct Answers A form of fiscal federalism
where federal aid is given to the states or local gov'ts with few
strings attached.
Complete Solutions
"Power of the Purse" Correct Answers Executive branch
components can only spend what has been authorized and
appropriated by the legislative branch.
(Budget) Appropriation Correct Answers A part of the
congressional budgeting process that involves determining how
many dollars will be spent in a given year on a particular set of
gov't activities.
3 Branches Correct Answers 1) Legislative
2) Executive
3) Judicial
3 Levels Correct Answers 1) National
2) State
3) Local
The primary purpose of each is to provide services to citizens.
Separate and distinct, yet they may coordinate their efforts.
Ability to Pay Correct Answers Principle of taxation in which
those with higher incomes pay more taxes than those with lower
incomes, regardless of the number of government services they
receive.
Accomplishments Correct Answers Part of SEA reporting. The
outputs and outcomes as a result of operations.
,Account Structures Correct Answers Limit and classify gov't
spending. May be based on program or object class.
Accountability Correct Answers A gov'ts responsibility to its
population, usually by periodic popular elections and by
parliament's having the power to dismiss the government by
passing a motion of no confidence.The major actions taken by
government must be known and understood by the citizenry.
Accounting Correct Answers Used by gov't as a form of
control., Planning, recording, analyzing, and interpreting
financial information. Inhibit fraud and ensure funds are
available when bills come due.
Advanced Refunding Correct Answers The proceeds from the
new debt issue are not directly applied to the old debt. Rather,
the new debt proceeds are used to buy securities that are placed
in escrow; interest from the escrow acct is used to retire the old
debt.
AICPA Correct Answers The American Institute of Certified
Public Accountants. Establishes GAAS.
Apportionments Correct Answers Dispersal of budgetary
authority to an agency or program by the central management
agency--OMB--to support approved programs.
Appropriated Budget Correct Answers Provides legal authority
to spend as well as a legal constraint on government spending.
,Appropriations Correct Answers Budget laws passed by
Congress.
Areas of Overlap in Governmental Responsibilities Correct
Answers Nat'l and state gov'ts exercise authority in civil
defense and the Nat'l Guard. For example, during peacetime,
Nat'l Guard units fall under the direction of state governors and
meet the needs of the state. During nat'l emergencies, these units
are under command of the President, Commander in Chief. State
and local gov'ts have some responsibility for traffic safety. All 3
levels impact public education.
Article I Correct Answers Defines powers of the legislative
branch. Power to enact law, collect taxes, coin money, raise
armies and declare war.
Article II Correct Answers Defines the role and power of the
presidency and executive branch. Power to command armed
forces, grant pardons for offenses against the U.S., and to
appoint ambassadors and Supreme Court judges with the advice
and consent of the Senate.
Article III Correct Answers Defines power of judicial branch.
Power over legal cases arising under the U.S. Constitution and
related to treaties and ambassadors; controversies between two
or more states; and controversies between citizens of different
states.
Attestation Engagements Correct Answers Examining,
reviewing, or performing agreed-upon procedures on a limited
, subject matter, or an assertion about a limited subject matter
(financial or nonfinancial), and reporting on the results.
Auditing Correct Answers Final phase of gov't management
cycle. Provides information that is used to hold gov't
accountable and revise priorities during future planning efforts.
Balanced Budget Correct Answers Annual budget in which
expenditures equal revenues.
BANs Correct Answers Bond Anticipation Notes. Short-term
financing for capital projects.
Benchmarking Correct Answers Comparing indicators, such as
ratios, across entities or across different fiscal years.
Benefit of Sustainability Assessment Correct Answers Alerts
public officials and citizens to the need for policy changes
before the "fix" becomes too costly to implement.
Benefit Received Correct Answers The theory that consumers
should contribute taxes in proportion to the benefits received
from the services of the government.
Benefits of Effective FMS Correct Answers Promotes
accountability & efficiency and supports decision-making.
Block Grants Correct Answers A form of fiscal federalism
where federal aid is given to the states or local gov'ts with few
strings attached.
