CMFO Exam - Practice Questions and
Answers Graded A+
Every Audit Required by the Local Fiscal Affairs Law is required to be completed
by: - Correct answer-An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - Correct answer-CFO
A local government officer that serves on the agency that approves development
applications refers to a member of which board? - Correct answer-Planning Board
Cash management plan must be approved annual by the: - Correct answer-
Governing Body
The local bond law stipulates that the maturities of all bonds shall be as determined
by the local bond ordinance or by subsequent resolution and be within the
following limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
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,c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - Correct answer-d. All of the above
The effective date of a bond ordinance - Correct answer-20 days after first
publication after adoption
T/F - All matters not required to be contained in a bond ordinance may be acted on
by subsequent resolutions passed by the affirmative votes of a majority of the full
membership of the governing body - Correct answer-True
An increase in anticipated revenue from a known and recurring source will have
what effect on the appropriation for the RUT - Correct answer-Would decrease the
appropriation for the RUT
T/F - The exact line item appropriation or ordinance must be shown on the
resolution with the certification of funds in order to enter a contract - Correct
answer-True
The NJ Budget Law requires that the budget shall consist of a tabulated statement
of:
a. Both the CAP calculations on the tax levy and appropriations
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, b. All debt calculations, including total principal and interest due on outstanding
debt
c. All anticipated revenues applicable to expenditures for which appropriations are
made
d. All of the above
e. None of the above - Correct answer-c. All anticipated revenues applicable to
expenditures for which appropriations are made
Four classifications of revenue - Correct answer-Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: -
Correct answer-Referendum held at general or special election
Alternate calculation for the RUT - Correct answer-Average of the prior three years
collection rates - allowable with a resolution of the governing body
Debt limit - Correct answer-3.5% prior three years average equalized assessed
valuation
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Answers Graded A+
Every Audit Required by the Local Fiscal Affairs Law is required to be completed
by: - Correct answer-An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - Correct answer-CFO
A local government officer that serves on the agency that approves development
applications refers to a member of which board? - Correct answer-Planning Board
Cash management plan must be approved annual by the: - Correct answer-
Governing Body
The local bond law stipulates that the maturities of all bonds shall be as determined
by the local bond ordinance or by subsequent resolution and be within the
following limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - Correct answer-d. All of the above
The effective date of a bond ordinance - Correct answer-20 days after first
publication after adoption
T/F - All matters not required to be contained in a bond ordinance may be acted on
by subsequent resolutions passed by the affirmative votes of a majority of the full
membership of the governing body - Correct answer-True
An increase in anticipated revenue from a known and recurring source will have
what effect on the appropriation for the RUT - Correct answer-Would decrease the
appropriation for the RUT
T/F - The exact line item appropriation or ordinance must be shown on the
resolution with the certification of funds in order to enter a contract - Correct
answer-True
The NJ Budget Law requires that the budget shall consist of a tabulated statement
of:
a. Both the CAP calculations on the tax levy and appropriations
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, b. All debt calculations, including total principal and interest due on outstanding
debt
c. All anticipated revenues applicable to expenditures for which appropriations are
made
d. All of the above
e. None of the above - Correct answer-c. All anticipated revenues applicable to
expenditures for which appropriations are made
Four classifications of revenue - Correct answer-Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: -
Correct answer-Referendum held at general or special election
Alternate calculation for the RUT - Correct answer-Average of the prior three years
collection rates - allowable with a resolution of the governing body
Debt limit - Correct answer-3.5% prior three years average equalized assessed
valuation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
