COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
AGA - ansAssociation of Government Accountants
CEAR - ansCertificate of Excellence in Accountability Reporting
CFO - ansChief Financial Officer
CGFM - ansCertified Government Financial Manager
ERP - ansEnterprise Resource Planning
FASAB - ansFederal Accounting Standards Advisory Board
FASB - ansFinancial Accounting Standards Board
FSIO - ansFinancial Systems Integration Office (within GSA)
GAAP - ansGenerally Accepted Accounting Principles
GAO - ansGovernment Accountibility Office
GASB - ansGovernment Accounting Standards Board
GPRA - ansGovernment Performance and Results Act
OMB - ansOffice of Management and Budget
PAR - ansPerformance and Accountability Report
SEA - ansService Efforts and Accomplishments
Accountability - ansPrinciple that in a democracy, government operates at the consent of the
people. Therefore it must answer to the people for its actions and results, including the taking
and using of the people's resources.
Allotments - ansIn the federal government, an agency's distribution of apportioned budgetary
authority to various components within the agency. After the executive agency receives its
apportionment, it allots budgetary authority to specific components within the agency.
Anti-Deficiency Act - ansAt the federal level, a law stating that officials can be fined and/or
jailed if they obligate the government to spend funds beyond the legally authorized purpose,
time, or amount.
Apportionmnets - ansDefinitions may vary at different levels of government. At the federal
level, OMB's approval to use a protion of the legislatively approved budgetary authority.
Appropriated Budget - ansBudget that has been passed by the legistlative branch; has effect
of law.
Appropriation - ansA legistlative enactment (law, statute or ordinance) that creates spending
authority; the legal authority to incur expenses and spend money.
Attestation engagements - ansEngagement primarily concerned with examining or
performing agreed upon procedures on a subject matter, or an assertion about a subject
matter, and reporting on the results. The subject matter may be financial or nonfinancial and
can be part of a financial audit or performance audit. Possible subjects include reporting on
an entity's internal controls, compliance with law or performance measures.
Authorization - ansLegislative enactment that approves programs; prescribes what activities
an agency may pursue if funding is available.
Block grants - ansIntergovernmental provision of resources for broadly defined purposes.
Contrasts with category grants.
,COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
Capital Budget - ansForecasts and controls spending for "big ticket" items that are acquired
and used over a period of several years, such as construction projects and major equipment
purchases. Used at state and local levels.
Capital lease - ansCapital leases is a lease fo real property that meets defined criteria
requiring the government to report the property as it purchased long term debt
Cash-flow budget - ansForecasts the timing as well as amount of cash flows for the year.
Used to project required cash levels.
Category grants - ansIntergovernmental provision of resources to be used for activities in a
specific category of purpose. May be further classified as discretionary grants or formula
grants. Contrasts with block grants.
Central Management Agencies - ansGovernment agencies that provide central management
services to other components. Example would be a state government hr office (that serves all
state agencies) or the OMB at the federal level.
CEAR - ansAn AGA program that helps federal agencies and their components to produce
effective, high-quality Performance and Accountability Reports
Certificate of Participation - ansForm of shared government financing. In a typical form,
several financial institutions share in a loan arrangement with a government entity.
Charter - ansLocal government version of a constitution. States may provide for the
establishment of local governments through charters
checks and balances - ansProcess by which one branch of government (legislative, executiv
or judicial) can constrain actions of the other branches. Flows from separation of powers.
CFO Act - ans1990 law that, among other provisions, requires the federal government's major
executive branch agencies to have a CFO. Prescribes duties and reporting requirements, and
requires audited financial statements
Commissions - ansGovernment components established by law, statuted or ordinance. May
be permanent or temporary. Because they are established by law, may have greater autonomy
and authority than government components that are administratively established. Ex. Federal
Communication Commision
Components - ansOrganized units of government such as agencies, offices and departments.
Found in all branches of government at all levels.
Conflict of interest - ansArises when one has personal interest in matters relating to official
duties or activities. Such conflicts can destroy objectivity and independence and prevent the
exercise of due care
Consumption Taxes - ansBroad category of tax that includes sales, use, excise and value-
added taxes
Continuity of Operations - ansRefers to the efforts to ensure the organization can sustain
essential operations regardless of planned or unplanned incidents or disruptions.
Covenant (bond) - ansLegal requirements pertaining to a specific bond issue. Typically
define the maturity date, revenue stream that will be used to repay the debt, interest rate and
repayment schedule. May require a sinking fund and may specify conditions that must be met
before new debt can be issued.
,COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
Credit-rating agencies - ansIndependent organizations that assess the credit worthiness of
debt. Three major rating agenciew are Standard & Poors, Moody's Investor Service and
Fitches rating
Data mining - ansUsing special, computer-based techniques such as filters and algorithms to
extract meaningful information from large bodies of data
Debt - ansMoney owed by the entity to individual or organizational creditors, ususally as a
result of planned short- or long-term borrowing to finance government objectives
Dedicated tax - ansTaxes levied to finance a specific activity. Proceeds are deposited into an
account restricted to that activity. Also referred to as earmarked or restricted taxes.
Deficit - ansOccurs when government expenditures for a specific fiscal period exceed
revenues and/or financial resource inflows.
Diligence - ansPursuing an event, action or assignment to a timely and sufficient end or close
Discrestionary grants - ansForm of category grant. Transfers funds between governments for
a specific purpose; whether a grant is awarded and the amount of the award depend on
discretion of the entity providing the funds
Donations - ansVoluntary contributions that confer no rights or benefits on the giver
Due care - ansTo discharge professional responsibilities with competence and diligence, to
the best of one's ability, and with the same level of ability and skill as others in similar
positions. It also means to act in the best interest of those served.
Earmarking - ansVariation on use of special funds. Revenue from specific taxes or other
sources is set aside for specific activities. One example is the earmarking of gasoline taxes for
highway improvements
Enterprise Resoure Planning System - ansMajor "end-to-end" computer system that links
many functions and departments. Used to simplify and streamline financial management, and
to integrate operation with financial management
Estate tax - ansForm of wealth tax. Levied on the estate of the deceased person before assets
are distributed to heirs
Ethics - ansA set of moral principles and values; the principles of conduct governing an
individual or a (professional) group. A complex system of discipline that civilized societies
impose on themselves through laws, customs, standards, social etiquette and other rules to
govern moral conduct
Excise tax - ansForm of consumption tax. Levied on the consumption of a particular type of
good or participation in a certain type of activity. Whereas general sales taxes are broad-
based, excise taxes are more narrowly targeted.
Executive orders - ansOrders issued by the president, governor, or a local government's chief
executive that do not violate laws or statutes and have substantial impact on policy and
procedures of government. They carry less weight than laws because the legislature or next
chief executive may overturn the previous order
Fair - ansFree from self-interest, prejudice or favoritism. Implies an elimination of one's own
feelings, prejudices and desires so as to acheive a proper balance of conflicting interests.
, COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
FASAB - ansDefines GAAP for entities of the federal government; this includes the national
government as a whole plus distinct components.
Federalism - ansPrinciple that government authority and responsibility is shared among
different levels of government. (In practice, people often use the term 'federal' when referring
to the national level of government)
FASB - ansDefines GAAP for private sector entities. Occasionally, GASB and FASAB make
FASB standards applicable to national, state or local government
Financial Management System - ansOrganized means for the collection, processing,
transmission and dissemination of financial information. Includes policies and procedures
and trained personnel as well as any applicable computer hardware and software
Financial Statement Audit - ansExamination of financial statements, accomplished by an
independent auditor. Results in an opinon on whether the financial statements are presented
fairly in accordance with GAAP or another comprehensive basis of accounting
Financial Reports - ansExternal reports that depict financial position and financial results of
operations of the entity
Formula grants - ansForm of category grants. The amount of the inter-governmental transfer
is based on a formula contained in law or regulation, which determines the total amount
recipients will receive if basic eligibility requirements are satisfied
Forensic auditing - ans"Forensic" implies that the results will be admissable as legal
evidence. Forensic auditing combines the skills of auditors and accountants with investigative
techniques, useful for both detection and prevention of fraud
General Assembly - ansName often applied to the legislative branch at the state level
General obligation bonds - ansForm of government debt that is backed by the full faith and
credit of the government. Contrasts with revenue bonds
General-purpose government - ansEntities at the national, state or local level that provide a
broad range of services
GASB - ansDefines GAAP for state and local government entities
Government Corporationgs - ansQuasi-government entities formed to support businesslike
functions where most, if not all, operating expenses are expected to be covered through
revenues and fees, rather than from appropriated budget authority
Government Performance and Results Act (GPRA) - ansU.S. law passed in 1993; requires
federal agencies to create long-term strategic plans. The strategic plans are followed by
annual performance plans (currnetly performance budgets), performance measures and
performance reports
Grants - ansFunds transferred from one level of government to another for specific or broad
purposes
Impartial - ansLack of favoritism. The absence of favor or prejudice. Not partial or biased.
Treating or affecting all equally.
Income tax - ansTax based on income and levied on individuals or corporations. Used most
often at national and state levels, though some states allow local governments to impose
income taxes.
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
AGA - ansAssociation of Government Accountants
CEAR - ansCertificate of Excellence in Accountability Reporting
CFO - ansChief Financial Officer
CGFM - ansCertified Government Financial Manager
ERP - ansEnterprise Resource Planning
FASAB - ansFederal Accounting Standards Advisory Board
FASB - ansFinancial Accounting Standards Board
FSIO - ansFinancial Systems Integration Office (within GSA)
GAAP - ansGenerally Accepted Accounting Principles
GAO - ansGovernment Accountibility Office
GASB - ansGovernment Accounting Standards Board
GPRA - ansGovernment Performance and Results Act
OMB - ansOffice of Management and Budget
PAR - ansPerformance and Accountability Report
SEA - ansService Efforts and Accomplishments
Accountability - ansPrinciple that in a democracy, government operates at the consent of the
people. Therefore it must answer to the people for its actions and results, including the taking
and using of the people's resources.
Allotments - ansIn the federal government, an agency's distribution of apportioned budgetary
authority to various components within the agency. After the executive agency receives its
apportionment, it allots budgetary authority to specific components within the agency.
Anti-Deficiency Act - ansAt the federal level, a law stating that officials can be fined and/or
jailed if they obligate the government to spend funds beyond the legally authorized purpose,
time, or amount.
Apportionmnets - ansDefinitions may vary at different levels of government. At the federal
level, OMB's approval to use a protion of the legislatively approved budgetary authority.
Appropriated Budget - ansBudget that has been passed by the legistlative branch; has effect
of law.
Appropriation - ansA legistlative enactment (law, statute or ordinance) that creates spending
authority; the legal authority to incur expenses and spend money.
Attestation engagements - ansEngagement primarily concerned with examining or
performing agreed upon procedures on a subject matter, or an assertion about a subject
matter, and reporting on the results. The subject matter may be financial or nonfinancial and
can be part of a financial audit or performance audit. Possible subjects include reporting on
an entity's internal controls, compliance with law or performance measures.
Authorization - ansLegislative enactment that approves programs; prescribes what activities
an agency may pursue if funding is available.
Block grants - ansIntergovernmental provision of resources for broadly defined purposes.
Contrasts with category grants.
,COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
Capital Budget - ansForecasts and controls spending for "big ticket" items that are acquired
and used over a period of several years, such as construction projects and major equipment
purchases. Used at state and local levels.
Capital lease - ansCapital leases is a lease fo real property that meets defined criteria
requiring the government to report the property as it purchased long term debt
Cash-flow budget - ansForecasts the timing as well as amount of cash flows for the year.
Used to project required cash levels.
Category grants - ansIntergovernmental provision of resources to be used for activities in a
specific category of purpose. May be further classified as discretionary grants or formula
grants. Contrasts with block grants.
Central Management Agencies - ansGovernment agencies that provide central management
services to other components. Example would be a state government hr office (that serves all
state agencies) or the OMB at the federal level.
CEAR - ansAn AGA program that helps federal agencies and their components to produce
effective, high-quality Performance and Accountability Reports
Certificate of Participation - ansForm of shared government financing. In a typical form,
several financial institutions share in a loan arrangement with a government entity.
Charter - ansLocal government version of a constitution. States may provide for the
establishment of local governments through charters
checks and balances - ansProcess by which one branch of government (legislative, executiv
or judicial) can constrain actions of the other branches. Flows from separation of powers.
CFO Act - ans1990 law that, among other provisions, requires the federal government's major
executive branch agencies to have a CFO. Prescribes duties and reporting requirements, and
requires audited financial statements
Commissions - ansGovernment components established by law, statuted or ordinance. May
be permanent or temporary. Because they are established by law, may have greater autonomy
and authority than government components that are administratively established. Ex. Federal
Communication Commision
Components - ansOrganized units of government such as agencies, offices and departments.
Found in all branches of government at all levels.
Conflict of interest - ansArises when one has personal interest in matters relating to official
duties or activities. Such conflicts can destroy objectivity and independence and prevent the
exercise of due care
Consumption Taxes - ansBroad category of tax that includes sales, use, excise and value-
added taxes
Continuity of Operations - ansRefers to the efforts to ensure the organization can sustain
essential operations regardless of planned or unplanned incidents or disruptions.
Covenant (bond) - ansLegal requirements pertaining to a specific bond issue. Typically
define the maturity date, revenue stream that will be used to repay the debt, interest rate and
repayment schedule. May require a sinking fund and may specify conditions that must be met
before new debt can be issued.
,COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
Credit-rating agencies - ansIndependent organizations that assess the credit worthiness of
debt. Three major rating agenciew are Standard & Poors, Moody's Investor Service and
Fitches rating
Data mining - ansUsing special, computer-based techniques such as filters and algorithms to
extract meaningful information from large bodies of data
Debt - ansMoney owed by the entity to individual or organizational creditors, ususally as a
result of planned short- or long-term borrowing to finance government objectives
Dedicated tax - ansTaxes levied to finance a specific activity. Proceeds are deposited into an
account restricted to that activity. Also referred to as earmarked or restricted taxes.
Deficit - ansOccurs when government expenditures for a specific fiscal period exceed
revenues and/or financial resource inflows.
Diligence - ansPursuing an event, action or assignment to a timely and sufficient end or close
Discrestionary grants - ansForm of category grant. Transfers funds between governments for
a specific purpose; whether a grant is awarded and the amount of the award depend on
discretion of the entity providing the funds
Donations - ansVoluntary contributions that confer no rights or benefits on the giver
Due care - ansTo discharge professional responsibilities with competence and diligence, to
the best of one's ability, and with the same level of ability and skill as others in similar
positions. It also means to act in the best interest of those served.
Earmarking - ansVariation on use of special funds. Revenue from specific taxes or other
sources is set aside for specific activities. One example is the earmarking of gasoline taxes for
highway improvements
Enterprise Resoure Planning System - ansMajor "end-to-end" computer system that links
many functions and departments. Used to simplify and streamline financial management, and
to integrate operation with financial management
Estate tax - ansForm of wealth tax. Levied on the estate of the deceased person before assets
are distributed to heirs
Ethics - ansA set of moral principles and values; the principles of conduct governing an
individual or a (professional) group. A complex system of discipline that civilized societies
impose on themselves through laws, customs, standards, social etiquette and other rules to
govern moral conduct
Excise tax - ansForm of consumption tax. Levied on the consumption of a particular type of
good or participation in a certain type of activity. Whereas general sales taxes are broad-
based, excise taxes are more narrowly targeted.
Executive orders - ansOrders issued by the president, governor, or a local government's chief
executive that do not violate laws or statutes and have substantial impact on policy and
procedures of government. They carry less weight than laws because the legislature or next
chief executive may overturn the previous order
Fair - ansFree from self-interest, prejudice or favoritism. Implies an elimination of one's own
feelings, prejudices and desires so as to acheive a proper balance of conflicting interests.
, COMPREHENSIVE CGFM Exam 1-
Study Guide Exam Newest and Latest
Updated 2026/2027 Complete Questions
And Correct Detailed Answers Already
Graded A+
FASAB - ansDefines GAAP for entities of the federal government; this includes the national
government as a whole plus distinct components.
Federalism - ansPrinciple that government authority and responsibility is shared among
different levels of government. (In practice, people often use the term 'federal' when referring
to the national level of government)
FASB - ansDefines GAAP for private sector entities. Occasionally, GASB and FASAB make
FASB standards applicable to national, state or local government
Financial Management System - ansOrganized means for the collection, processing,
transmission and dissemination of financial information. Includes policies and procedures
and trained personnel as well as any applicable computer hardware and software
Financial Statement Audit - ansExamination of financial statements, accomplished by an
independent auditor. Results in an opinon on whether the financial statements are presented
fairly in accordance with GAAP or another comprehensive basis of accounting
Financial Reports - ansExternal reports that depict financial position and financial results of
operations of the entity
Formula grants - ansForm of category grants. The amount of the inter-governmental transfer
is based on a formula contained in law or regulation, which determines the total amount
recipients will receive if basic eligibility requirements are satisfied
Forensic auditing - ans"Forensic" implies that the results will be admissable as legal
evidence. Forensic auditing combines the skills of auditors and accountants with investigative
techniques, useful for both detection and prevention of fraud
General Assembly - ansName often applied to the legislative branch at the state level
General obligation bonds - ansForm of government debt that is backed by the full faith and
credit of the government. Contrasts with revenue bonds
General-purpose government - ansEntities at the national, state or local level that provide a
broad range of services
GASB - ansDefines GAAP for state and local government entities
Government Corporationgs - ansQuasi-government entities formed to support businesslike
functions where most, if not all, operating expenses are expected to be covered through
revenues and fees, rather than from appropriated budget authority
Government Performance and Results Act (GPRA) - ansU.S. law passed in 1993; requires
federal agencies to create long-term strategic plans. The strategic plans are followed by
annual performance plans (currnetly performance budgets), performance measures and
performance reports
Grants - ansFunds transferred from one level of government to another for specific or broad
purposes
Impartial - ansLack of favoritism. The absence of favor or prejudice. Not partial or biased.
Treating or affecting all equally.
Income tax - ansTax based on income and levied on individuals or corporations. Used most
often at national and state levels, though some states allow local governments to impose
income taxes.
