CGFM EXAM 2 2025 QUESTIONS
AND ANSWERS
Special assessments are used to ensure that - ANSWER-individuals benefiting
from the project are the ones who will pay for it
imputed costs - ANSWER-costs incurred by a federal entity for goods and services
provided and paid for in total, or in part, by other federal entities
Accumulated Depreciation is which type of account - ANSWER-contra asset
Preferred Costing Methodology - ANSWER-Directly tracing costs wherever
feasible and economically practical
due process document describing various methods of accounting for a transaction
and asks respondents to provide their views on the preferred method - ANSWER-
discussion memorandum
What is the correct accounting entry when one government agency receives a grant
from another government agency? - ANSWER-The grantor agency recognizes
liability and the recipient agency recognizes non-exchange revenue when the
recipient agency meets all eligibility requirements.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,GASB, FASB, and FASAB have been designated standard-setting bodies for
accounting and reporting standards by the - ANSWER-AICPA
Federal appropriations provide a legal authority for undertaking programs,
allocating resources, and - ANSWER-expending funds
Federal appropriations law can be categorized into which three topical areas? -
ANSWER-Purpose, time, and amount (PTA)
What are the basic types of budget authority used in the Federal Government? (6) -
ANSWER-1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
In financial reporting, consistency of communication means - 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.
Budgeting is an element of which policy? - ANSWER-fiscal
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Another term for the federal government baseline budget is - ANSWER-a current
level of service budget.
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 -
ANSWER-citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal entry required is
a debit to - ANSWER-Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element? - ANSWER-program
Which of the following sources of accounting principles is at the top of the GASB
hierarchy? - ANSWER-Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board is to -
ANSWER-set standards for the general purpose financial statements of
international public sector entities.
Non-exchange revenue includes inflows of resources arising from - ANSWER-
taxes, fines and penalties from the private sector.
A group of activities within a function are known as - ANSWER-a program
The organizations that establish the standards used by their constituents for
external reporting purposes include FASB, FASAB, GASB and - ANSWER-
International Public Sector Accounting Standards Board
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
AND ANSWERS
Special assessments are used to ensure that - ANSWER-individuals benefiting
from the project are the ones who will pay for it
imputed costs - ANSWER-costs incurred by a federal entity for goods and services
provided and paid for in total, or in part, by other federal entities
Accumulated Depreciation is which type of account - ANSWER-contra asset
Preferred Costing Methodology - ANSWER-Directly tracing costs wherever
feasible and economically practical
due process document describing various methods of accounting for a transaction
and asks respondents to provide their views on the preferred method - ANSWER-
discussion memorandum
What is the correct accounting entry when one government agency receives a grant
from another government agency? - ANSWER-The grantor agency recognizes
liability and the recipient agency recognizes non-exchange revenue when the
recipient agency meets all eligibility requirements.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,GASB, FASB, and FASAB have been designated standard-setting bodies for
accounting and reporting standards by the - ANSWER-AICPA
Federal appropriations provide a legal authority for undertaking programs,
allocating resources, and - ANSWER-expending funds
Federal appropriations law can be categorized into which three topical areas? -
ANSWER-Purpose, time, and amount (PTA)
What are the basic types of budget authority used in the Federal Government? (6) -
ANSWER-1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
In financial reporting, consistency of communication means - 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.
Budgeting is an element of which policy? - ANSWER-fiscal
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Another term for the federal government baseline budget is - ANSWER-a current
level of service budget.
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 -
ANSWER-citizens, Congress, executives, and program managers.
When establishing an allowance for doubtful accounts, the journal entry required is
a debit to - ANSWER-Bad Debts Expense and a credit to the Allowance for
Doubtful Accounts.
Street resurfacing is a type of which budget element? - ANSWER-program
Which of the following sources of accounting principles is at the top of the GASB
hierarchy? - ANSWER-Generally Accepted Accounting Principles
The role of the International Public Sector Accounting Standards Board is to -
ANSWER-set standards for the general purpose financial statements of
international public sector entities.
Non-exchange revenue includes inflows of resources arising from - ANSWER-
taxes, fines and penalties from the private sector.
A group of activities within a function are known as - ANSWER-a program
The organizations that establish the standards used by their constituents for
external reporting purposes include FASB, FASAB, GASB and - ANSWER-
International Public Sector Accounting Standards Board
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
