Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 101:

  There are same budget reserves for all types of budgets (Federal, State and Local).

  A. True

  B. False

  C. It depends

  D. All EXCEPT "Local Government Budget"

  Correct Answer: B

• Question 102:

  Once the budget has been adopted, the _______ executes it to ensure that legislative intent is met and the budget stays in balance.

  A. CEO

  B. CFO

  C. Senior Accountant

  D. None of these

  Correct Answer: A

• Question 103:

  Banks offer short-term loans, including:

  A. A line of credit against which a specified dollar amount may be drawn with interest paid, usually monthly

  B. Bond anticipation notes (BANs) in anticipation of future long-term financing

  C. Tax anticipation notes (TANs) or revenue anticipation notes (RANs) in anticipation of taxes or other revenues that will be received

  D. All of these

  Correct Answer: D

• Question 104:

  Assume that the bank's monthly costs are $12,250, the 30-day Treasury bill rate is 10.4%, and the bank is subject to a 15% reserve requirement. What is the MCB (Minimum compensating balance)?

  A. $141,629

  B. $142,629

  C. $141,529

  D. None of these

  Correct Answer: A

• Question 105:

  The primary objectives, in priority order, should be:

  A. Safety

  B. Liquidity

  C. Yield

  D. All of these

  Correct Answer: D

• Question 106:

  In the collection of cash receipts, for a fee, organizations can engage a bank to provide a lock-box service. Lockboxes may be:

  A. Wholesale

  B. Retail

  C. Temporary

  D. Only A and B

  Correct Answer: D

• Question 107:

  The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00. The unit cost is $3.50. The carrying cost is 20 percent, and the carrying cost per unit is and0.70(0.20x$3.50). What is the economic order quantity?

  A. 150 oil filters

  B. 130 oil filters

  C. 155 oil filters

  D. None of these

  Correct Answer: A

• Question 108:

  The IFB should:

  A. be issued only to vendors with a history of acceptable bid performance

  B. include only related items

  C. Specify the delivery conditions and stipulate that bids will be opened publicly

  D. All of these

  Correct Answer: D

• Question 109:

  Assume an invoice with credit terms of 2%/10, net30. The interest charge is 2% of $1000, or $20; the principal is $980; and the days of principal borrowed are the 20 days of credit. What is the interest rate offered if the discount is taken?

  A. 37%

  B. 37.23%

  C. 37.33%

  D. 37.35%

  Correct Answer: B

• Question 110:

  Which one the following statement is NOT included in Green Purchasing?

  A. Buying energy-efficient light bulbs

  B. Buying batteries with mercury

  C. Buying non-toxic cleaning products

  D. Buying recycled paper and two-way envelopes

  Correct Answer: B