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CGFM EXAM 2 NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
I 1.The Defense Logistics Agency holds jet fuel as inventory,
which it sells to support flight operations. The table on the left
provides beginning/ending fiscal year 2017 inventory levels and
purchase information. Assuming the agency uses the FIFO
inventory valuation method, what was the cost of goods sold for
jet fuel in fiscal year 2017? - Correct Answer: $133.50
I 2.In financial reporting, consistency of communication means -
Correct Answer: if accounting principles have changed or if the
financial reporting entity has changed, the nature and reason for
the change, as well as the effect of the change, should be
disclosed.
I 3.Budgeting is an element of which policy? - Correct Answer:
fiscal
I 4.Another term for the federal government baseline budget is -
Correct Answer: a current level of service budget.
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I 5.As described by FASAB, the four groups of people to whom
the government is accountable and are, therefore, potential users
of federal financial statements are - Correct Answer: citizens,
Congress, executives, and program managers.
I 6.When establishing an allowance for doubtful accounts, the
journal entry required is a debit to - Correct Answer: Bad Debts
Expense and a credit to the Allowance for Doubtful Accounts.
I 7.Street resurfacing is a type of which budget element? - Correct
Answer: program
I 8.Which of the following is a correct accounting entry when one
government agency receives a grant from another government
agency? - Correct Answer: The grantor agency recognizes liability
and the recipient agency recognizes non-exchange revenue when
the recipient agency meets all eligibility requirements.
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I 9.Which of the following sources of accounting principles is at
the top of the GASB hierarchy? - Correct Answer: Generally
Accepted Accounting Principles
I 10.The role of the International Public Sector Accounting
Standards Board is to - Correct Answer: set standards for the
general purpose financial statements of international public sector
entities.
I 11.A state needs to determine its indirect cost rate for fringe
benefits as a function of direct salaries costs of $3 million. Based
on the information shown on the left, the indirect cost is - Correct
Answer: 10.8%
I 12.Non-exchange revenue includes inflows of resources arising
from - Correct Answer: taxes, fines and penalties from the private
sector.
I 13.A group of activities within a function are known as - Correct
Answer: a program.
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I 14.In financing capital projects, special assessments are used to
ensure that - Correct Answer: the individuals benefiting from the
project are the ones who pay for it.
I 15.The organizations that establish the standards used by their
constituents for external reporting purposes include FASB,
FASAB, GASB and - Correct Answer: International Public Sector
Accounting Standards Board.
I 16.Which of the following terms describes costs an agency
incurs on behalf of another agency? - Correct Answer: inter-entity
I 17.State and local governments need cost information to receive
reimbursements for allowable costs for federal grants, while
federal agencies are required to have cost accounting concepts in
the preparation of what type of statements? - Correct Answer:
financial statements
I 18.State and local governments use encumbrances as the major
budgetary control tool to ensure availability of funds prior to
entering agreements, while the federal government instills
CGFM EXAM 2 NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
I 1.The Defense Logistics Agency holds jet fuel as inventory,
which it sells to support flight operations. The table on the left
provides beginning/ending fiscal year 2017 inventory levels and
purchase information. Assuming the agency uses the FIFO
inventory valuation method, what was the cost of goods sold for
jet fuel in fiscal year 2017? - Correct Answer: $133.50
I 2.In financial reporting, consistency of communication means -
Correct Answer: if accounting principles have changed or if the
financial reporting entity has changed, the nature and reason for
the change, as well as the effect of the change, should be
disclosed.
I 3.Budgeting is an element of which policy? - Correct Answer:
fiscal
I 4.Another term for the federal government baseline budget is -
Correct Answer: a current level of service budget.
,2|Page
I 5.As described by FASAB, the four groups of people to whom
the government is accountable and are, therefore, potential users
of federal financial statements are - Correct Answer: citizens,
Congress, executives, and program managers.
I 6.When establishing an allowance for doubtful accounts, the
journal entry required is a debit to - Correct Answer: Bad Debts
Expense and a credit to the Allowance for Doubtful Accounts.
I 7.Street resurfacing is a type of which budget element? - Correct
Answer: program
I 8.Which of the following is a correct accounting entry when one
government agency receives a grant from another government
agency? - Correct Answer: The grantor agency recognizes liability
and the recipient agency recognizes non-exchange revenue when
the recipient agency meets all eligibility requirements.
,3|Page
I 9.Which of the following sources of accounting principles is at
the top of the GASB hierarchy? - Correct Answer: Generally
Accepted Accounting Principles
I 10.The role of the International Public Sector Accounting
Standards Board is to - Correct Answer: set standards for the
general purpose financial statements of international public sector
entities.
I 11.A state needs to determine its indirect cost rate for fringe
benefits as a function of direct salaries costs of $3 million. Based
on the information shown on the left, the indirect cost is - Correct
Answer: 10.8%
I 12.Non-exchange revenue includes inflows of resources arising
from - Correct Answer: taxes, fines and penalties from the private
sector.
I 13.A group of activities within a function are known as - Correct
Answer: a program.
, 4|Page
I 14.In financing capital projects, special assessments are used to
ensure that - Correct Answer: the individuals benefiting from the
project are the ones who pay for it.
I 15.The organizations that establish the standards used by their
constituents for external reporting purposes include FASB,
FASAB, GASB and - Correct Answer: International Public Sector
Accounting Standards Board.
I 16.Which of the following terms describes costs an agency
incurs on behalf of another agency? - Correct Answer: inter-entity
I 17.State and local governments need cost information to receive
reimbursements for allowable costs for federal grants, while
federal agencies are required to have cost accounting concepts in
the preparation of what type of statements? - Correct Answer:
financial statements
I 18.State and local governments use encumbrances as the major
budgetary control tool to ensure availability of funds prior to
entering agreements, while the federal government instills
