100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
CGFM EXAM 2 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQUENTLY TESTED QUESTION AND SOLUTIONS |ALREADY GRADED A+|BRAND NEW VERSION!!!|GUARANTEED PASS |LATEST UPDATE$22.99
Add to cart
CGFM EXAM 2 2024 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQUENTLY TESTED QUESTION AND SOLUTIONS |ALREADY GRADED A+|BRAND NEW VERSION!!!|GUARANTEED PASS |LATEST UPDATE
CGFM EXAM 2 2024 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTION AND SOLUTIONS
|ALREADY GRADED A+|BRAND NEW
VERSION!!!|GUARANTEED PASS
|LATEST UPDATE
CGFM EXAM 2 2024 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTION AND SOLUTIONS
|ALREADY GRADED A+|BRAND NEW
VERSION!!!|GUARANTEED PASS
|LATEST UPDATE
I 1.The Defense Logistics Agency holds jet fuel as inventory, which it sells to support flight operations.
The table on the left provides beginning/ending fiscal year 2017 inventory levels and purchase
information. Assuming the agency uses the FIFO inventory valuation method, what was the cost of
goods sold for jet fuel in fiscal year 2017?
Correct Answer: $133.50
I 2.In financial reporting, consistency of communication means
Correct 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.
I 3.Budgeting is an element of which policy?
Correct Answer: fiscal
I 4.Another term for the federal government baseline budget is
Correct Answer: a current level of service budget.
I 5.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
Correct Answer: citizens, Congress, executives, and program managers.
I 6.When establishing an allowance for doubtful accounts, the journal entry required is a debit to
Correct Answer: Bad Debts Expense and a credit to the Allowance for Doubtful Accounts.
1|Page
,I 7.Street resurfacing is a type of which budget element?
Correct Answer: program
I 8.Which of the following is a correct accounting entry when one government agency receives a grant
from another government agency?
Correct Answer: The grantor agency recognizes liability and the recipient agency recognizes non-
exchange revenue when the recipient agency meets all eligibility requirements.
I 9.Which of the following sources of accounting principles is at the top of the GASB hierarchy?
Correct Answer: Generally Accepted Accounting Principles
I 10.The role of the International Public Sector Accounting Standards Board is to
Correct Answer: set standards for the general purpose financial statements of international public sector
entities.
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
Correct Answer: 10.8%
I 12.Non-exchange revenue includes inflows of resources arising from
Correct Answer: taxes, fines and penalties from the private sector.
I 13.A group of activities within a function are known as
Correct Answer: a program.
I 14.In financing capital projects, special assessments are used to ensure that
Correct Answer: the individuals benefiting from the project are the ones who pay for it.
I 15.The organizations that establish the standards used by their constituents for external reporting
purposes include FASB, FASAB, GASB and
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?
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?
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
2|Page
,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 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
Correct Answer: $91.25 per rental.
I 20.Apportionments and allotments are used by agencies to ensure
Correct Answer: that outlays do not exceed appropriations.
I 21.Departments and agencies submit their apportionment requests for future expenditures during
which budget phase?
Correct Answer: execution
I 22.Which element of the budget structure is represented by license and permit revenue?
Correct Answer: category or source
I 23.Agencies generally submit their budget requests during the
Correct Answer: budget preparation phase.
I 24.In United States governments, what is the cornerstone of financial reporting?
Correct Answer: accountability
I 25.Unlike governments, businesses establish priorities for the services and products they provide,
based on the concept that
Correct Answer: shareholders provide financing and expect the business goals and objectives to be
profit-driven.
I 26.Which is the preferred costing methodology?
Correct Answer: directly tracing costs wherever feasible and economically practical
I 27.Two agencies using the same accounting principles is an example of
Correct Answer: comparability.
I 28.The function element of the budget refers to
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
Correct Answer: provide guidance to preparers and attesters regarding accounting issues.
3|Page
, I 30.All of the following factors should be considered when choosing the method used to forecast
revenues EXCEPT the
Correct Answer: complexity of the forecasting process.
31.Federal government-wide financial reporting allows the reader to
Correct Answer: assess the government's financial condition and long-term sustainability.
I 32.What action is allowable during the expired phase of federal budget execution?
Correct Answer: make upward adjustments to obligations
I 33.The concept that taxpayers of the current period should pay for the services they receive rather
than passing on the costs to the taxpayers of subsequent periods is called
Correct Answer: interperiod equity.
I 34.An agency is recommending a new program to the legislature. Included with the information is a
budgetary estimate, which forecasts expenditures for the upcoming fiscal year, as well as the next five
years. The budget was determined by comparing the goals to other entities providing similar services.
This method of forecasting expenditures is called
Correct Answer: performance based-budgeting.
I 35.Limitations on the amount, purpose or period of availability of budget authority are established by
the
Correct Answer: legislative branch in appropriation acts and legislation.
I 36.A continuing resolution is defined as
Correct Answer: a law allowing federal organizational units to continue operating for a limited period of
time, while the budget process continues.
I 37.Which type of budgeting links strategic goals with related long-term and annual performance goals,
and with the costs of specific activities that contribute to the achievement of those goals?
Correct Answer: performance budgeting
I 38.As a way to improve the effectiveness and efficiency of programs, some states and local
governments use what type of budgeting?
Correct Answer: performance
I 39.A claim in the amount of $500,000 has been filed against a state agency for a wrongful termination
occurring in the previous fiscal year. The initial hearing is set for January 15th. The attorney general's
office has determined the probability of payment is remote. In the state's comprehensive annual
financial report due December 31st, the claim should be
Correct Answer: omitted from the current year CAFR.
I 40.General obligation bonds differ from revenue bonds in that general obligation bonds
4|Page
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Dredward. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.99. You're not tied to anything after your purchase.
