AGA CGFM Study test in depth Examination and 100%
correctly verified Solutions Latest version 2024/2025
Fundamental Ethical Principle - correct answer public service is a public trust.
GPEFR - correct answer General Purpose External Financial Reports
Government borrowing is constrained by- correct answer constitutions and
statutes, bond covenants, and debt policies.
The federal government has ___ but not ___ debt limits. - correct answer
statutory, but not constitutional
Wealth taxes - correct answer real property, personal property, intangibles and
estate and inheritance taxes; costly to administer; major source of revenue for
local governments, primarily real property taxes
Consumption taxes - correct answer sales, use, excise, and VAT. Regressive;
low compliance rates; major source of financing for most state governments and
many local entities
3 long-term financing options; one short - correct answer bonds, lease-
purchase agreements and cop; notes
2 typical way gov't lowers interest costs in debt issues - correct answer
securing third-party insurance; state guarantees
The appropriated budget is - correct answer primarily legal authority to spend,
also an expression of public policy, a financial plan, and an important
communications device.
,The primary purpose of the budget PROCESS is - correct answer to prioritize
gov't expenditures and allocate financial resources to fund them.
Separation of power - correct answer legislature INFORMS policy, executive
IMPLEMENTS policy in ADMINISTRATION, and the judicial exercises JUDICIAL
REVIEW.
Government authority is founded in... - correct answer constitutions or charters
PIA - correct answer privacy impact assessments; required for federal
agencies
CAFR - correct answer Comprehensive Annual Financial Report
CEAR - correct answer Certificate of Excellence in Accountability Reporting
GAAS - correct answer Generally Accepted Auditing Standards
Accountability - correct answer In a democracy, government operates by the
consent of the people. It must answer to, the people for its actions and results,
including the taking and using of people's resources
CFO (Chief Financial Officers) Act - correct answer A 1990 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
Discretionary Grant - correct answer A term sometimes used to mean "Project
Grant"
,FASB (Financial Accounting Standards Board ) - correct answer Defines
GAAP for private sector entities. Occasionally, GASB and FASAB make FASB
standards applicable to state or local or the national governments
Performance Audit - correct answer Examination of performance and
management of program against objective criteria. Contrasts with a financial
audit which is limited to financial information.
Performance reports or popular reports - correct answer Condensed form of
external financial report that provides basic financial information and other
performance data in short, easy to read format designed for the average citizen.
Horizontal Equity - correct answer When it comes to income tax means that
different taxpayers with the same income level pay the same amount of taxes
Tax Expenditure - correct answer Provision of tax law or regulation that uses
tax deductions, tax credits, or income exemptions to encourage certain behavior
by individuals or businesses. It's an expenditure because it achieves, through the
tax system, certain political, economic or social goals that the government would
otherwise have to expend monies to accomplish
Ways in which governments differ from organizations in the private sector -
correct answer Governments have no shareholders. Governments rely on the
budget process to allocate resources. Governing bodies of many governments
are elected by the public. Governments provide many services that are not
available in the private sector. -Governments are established through legal
means. Governments have no profit motive. Governments raise revenue
primarily through taxes.
The budget is essential to government financial management. - correct answer
True. Governments are legally bound by appropriations. The budgets establishes
, spending authority, outlines programs and services to be provided to the public,
and defines the resources that are to be used.
The following is not a type of accountability - correct answer profit
accountability
The executive branch is only accountable to the public. - correct answer False.
The executive branch is also accountable to the legislative branch for spending
resources in accordance with legislative mandates.
Interperiod equity relates - correct answer to current-year revenues should be
sufficient to pay for current year services. Current-year services should NOT be
financed by future year taxpayers.
The following basis of accounting cannot be used to demonstrate the concept of
interperiod equity: - correct answer Cash basis
Government type funds - correct answer Modified accrual basis, focus on flow
of current financial resources, and record expenditures
Proprietary and fiduciary type funds - correct answer Accrual basis of
accounting, focus on economic resources, and record expenses
5 Types of Government Funds - correct answer General Fund, Special
Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent
Funds
2 Proprietary Fund Types - correct answer Enterprise Funds and Internal
Service Funds
correctly verified Solutions Latest version 2024/2025
Fundamental Ethical Principle - correct answer public service is a public trust.
GPEFR - correct answer General Purpose External Financial Reports
Government borrowing is constrained by- correct answer constitutions and
statutes, bond covenants, and debt policies.
The federal government has ___ but not ___ debt limits. - correct answer
statutory, but not constitutional
Wealth taxes - correct answer real property, personal property, intangibles and
estate and inheritance taxes; costly to administer; major source of revenue for
local governments, primarily real property taxes
Consumption taxes - correct answer sales, use, excise, and VAT. Regressive;
low compliance rates; major source of financing for most state governments and
many local entities
3 long-term financing options; one short - correct answer bonds, lease-
purchase agreements and cop; notes
2 typical way gov't lowers interest costs in debt issues - correct answer
securing third-party insurance; state guarantees
The appropriated budget is - correct answer primarily legal authority to spend,
also an expression of public policy, a financial plan, and an important
communications device.
,The primary purpose of the budget PROCESS is - correct answer to prioritize
gov't expenditures and allocate financial resources to fund them.
Separation of power - correct answer legislature INFORMS policy, executive
IMPLEMENTS policy in ADMINISTRATION, and the judicial exercises JUDICIAL
REVIEW.
Government authority is founded in... - correct answer constitutions or charters
PIA - correct answer privacy impact assessments; required for federal
agencies
CAFR - correct answer Comprehensive Annual Financial Report
CEAR - correct answer Certificate of Excellence in Accountability Reporting
GAAS - correct answer Generally Accepted Auditing Standards
Accountability - correct answer In a democracy, government operates by the
consent of the people. It must answer to, the people for its actions and results,
including the taking and using of people's resources
CFO (Chief Financial Officers) Act - correct answer A 1990 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
Discretionary Grant - correct answer A term sometimes used to mean "Project
Grant"
,FASB (Financial Accounting Standards Board ) - correct answer Defines
GAAP for private sector entities. Occasionally, GASB and FASAB make FASB
standards applicable to state or local or the national governments
Performance Audit - correct answer Examination of performance and
management of program against objective criteria. Contrasts with a financial
audit which is limited to financial information.
Performance reports or popular reports - correct answer Condensed form of
external financial report that provides basic financial information and other
performance data in short, easy to read format designed for the average citizen.
Horizontal Equity - correct answer When it comes to income tax means that
different taxpayers with the same income level pay the same amount of taxes
Tax Expenditure - correct answer Provision of tax law or regulation that uses
tax deductions, tax credits, or income exemptions to encourage certain behavior
by individuals or businesses. It's an expenditure because it achieves, through the
tax system, certain political, economic or social goals that the government would
otherwise have to expend monies to accomplish
Ways in which governments differ from organizations in the private sector -
correct answer Governments have no shareholders. Governments rely on the
budget process to allocate resources. Governing bodies of many governments
are elected by the public. Governments provide many services that are not
available in the private sector. -Governments are established through legal
means. Governments have no profit motive. Governments raise revenue
primarily through taxes.
The budget is essential to government financial management. - correct answer
True. Governments are legally bound by appropriations. The budgets establishes
, spending authority, outlines programs and services to be provided to the public,
and defines the resources that are to be used.
The following is not a type of accountability - correct answer profit
accountability
The executive branch is only accountable to the public. - correct answer False.
The executive branch is also accountable to the legislative branch for spending
resources in accordance with legislative mandates.
Interperiod equity relates - correct answer to current-year revenues should be
sufficient to pay for current year services. Current-year services should NOT be
financed by future year taxpayers.
The following basis of accounting cannot be used to demonstrate the concept of
interperiod equity: - correct answer Cash basis
Government type funds - correct answer Modified accrual basis, focus on flow
of current financial resources, and record expenditures
Proprietary and fiduciary type funds - correct answer Accrual basis of
accounting, focus on economic resources, and record expenses
5 Types of Government Funds - correct answer General Fund, Special
Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent
Funds
2 Proprietary Fund Types - correct answer Enterprise Funds and Internal
Service Funds
