CGFM EXAM 2 NEWEST 2024 ACTUAL
EXAM 100 QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED
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I 11.A state needs to determine its indirect cost rate for fringe
benefits as a function of direct salaries costs of $3 million.
Based on the information shown on the left, the indirect cost is -
ANSWER- Correct Answer: 10.8%
I 12.Non-exchange revenue includes inflows of resources arising
from - ANSWER- Correct Answer: taxes, fines and penalties
from the private sector.
I 13.A group of activities within a function are known as -
ANSWER- Correct Answer: a program.
I 14.In financing capital projects, special assessments are used to
ensure that - ANSWER- Correct Answer: the individuals
benefiting from the project are the ones who pay for it.
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I 15.The organizations that establish the standards used by their
constituents for external reporting purposes include FASB,
FASAB, GASB and - ANSWER- Correct Answer: International
Public Sector Accounting Standards Board.
I 16.Which of the following terms describes costs an agency
incurs on behalf of another agency? - ANSWER- Correct
Answer: inter-entity
I 17.State and local governments need cost information to
receive reimbursements for allowable costs for federal grants,
while federal agencies are required to have cost accounting
concepts in the preparation of what type of statements? -
ANSWER- Correct Answer: financial statements
I 18.State and local governments use encumbrances as the major
budgetary control tool to ensure availability of funds prior to
entering agreements, while the federal government instills
budgetary control using - ANSWER- Correct Answer:
commitments and obligations.
I 19.The equipment department of a municipality rents out
equipment to other departments and wants to set a fee that will
recover expenses. The department estimates 10,000 rentals per
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year, with the annual operating costs shown on the left. The
department has $5,000 in annual interest payments and $15,000
in annual debt service payments for the loan they took out to
purchase the equipment. The annual depreciation on the
equipment is $7,500. Based on this information, the user fee
should be set at - ANSWER- Correct Answer: $91.25 per rental.
I 20.Apportionments and allotments are used by agencies to
ensure - ANSWER- Correct Answer: that outlays do not exceed
appropriations.
I 21.Departments and agencies submit their apportionment
requests for future expenditures during which budget phase? -
ANSWER- Correct Answer: execution
I 22.Which element of the budget structure is represented by
license and permit revenue? - ANSWER- Correct Answer:
category or source
I 23.Agencies generally submit their budget requests during the -
ANSWER- Correct Answer: budget preparation phase.
I 24.In United States governments, what is the cornerstone of
financial reporting? - ANSWER- Correct Answer:
accountability
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I 25.Unlike governments, businesses establish priorities for the
services and products they provide, based on the concept that -
ANSWER- Correct Answer: shareholders provide financing and
expect the business goals and objectives to be profit-driven.
I 26.Which is the preferred costing methodology? - ANSWER-
Correct Answer: directly tracing costs wherever feasible and
economically practical
I 27.Two agencies using the same accounting principles is an
example of - ANSWER- Correct Answer: comparability.
I 28.The function element of the budget refers to - ANSWER-
Correct Answer: one of the major government service
classifications.
I 29.One purpose of the hierarchy of generally accepted
accounting principles for state, local, and federal accounting and
financial reporting is to - ANSWER- Correct Answer: provide
guidance to preparers and attesters regarding accounting issues.
I 30.All of the following factors should be considered when
choosing the method used to forecast revenues EXCEPT the -
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