CGFM Exam 3: Section 1, Chapter 1 -
Financial Management Functions UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Financial management functions - CORRECT ANSWER - 1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - CORRECT ANSWER - 1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal) - CORRECT ANSWER - enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid within 30 days
after receipt and acceptance of material and/or services - or - after receipt of a proper invoice
whichever is later. When payments are not made timely, interest should be automatically paid.
Notes that govt should take discounts on their payables via timely invoices when possible.
Cash management improvement act 1990 - CORRECT ANSWER - enacted to improve the
transfer of federal funds between federal and states and territories. Objectives are to (1) minimize
the time of transfer and payout for program purposes, (2) ensure funds are available when
requested, and (3) assess an interest liability to the Fed govt and/or states for the lost value of
funds.
Financial Management Functions UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Financial management functions - CORRECT ANSWER - 1) cash
2) investment
3) credit
4) acquisition
5) property
6) inventory and supply
7) financial management systems
cash management responsibilities - CORRECT ANSWER - 1) collecting money when due
2) making payments when owed
3) investment of idle cash
Prompt Payment Act (Federal) - CORRECT ANSWER - enacted to ensure the federal
government makes timely payments and pay interest if late. Bills are to be paid within 30 days
after receipt and acceptance of material and/or services - or - after receipt of a proper invoice
whichever is later. When payments are not made timely, interest should be automatically paid.
Notes that govt should take discounts on their payables via timely invoices when possible.
Cash management improvement act 1990 - CORRECT ANSWER - enacted to improve the
transfer of federal funds between federal and states and territories. Objectives are to (1) minimize
the time of transfer and payout for program purposes, (2) ensure funds are available when
requested, and (3) assess an interest liability to the Fed govt and/or states for the lost value of
funds.
