Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 111:

  A local government can either purchase a computer for $61,000 or lease it for five years at $15000, after which the local government would own it. The anticipated discount rate will be 8%. Is it more economical to lease or purchase?

  A. Lease

  B. Purchase

  C. No significant difference

  D. None of these

  Correct Answer: A

• Question 112:

  The local car dealer in town can provide the 10 new cars the city needs at cost of $150,000. If local preferences were given, what would the preference margin (PM) be, assuming the dealer pays $50,000 in local property and sales taxes and that the total sales by the dealer are $2,000,000?

  A. $325 per vehicle

  B. $375 per vehicle

  C. $370 per vehicle

  D. $380 per vehicle

  Correct Answer: B

• Question 113:

  Life cycle costing results in _________ overall cost.

  A. Lower

  B. Higher

  C. Balancing

  D. It depends

  Correct Answer: A

• Question 114:

  QPL is a specification based on:

  A. Manufacturers' names

  B. Brand names or model numbers that have been examined and approved for purchase by the government or nonprofit.

  C. None of these

  D. Both of these

  Correct Answer: D

• Question 115:

  Vendors sometimes attempt to unduly influence governing board members, the CEO, and agency personnel to buy their goods or services. To avoid such situations, the governing board of a government should adopt an ethics policy. The NIGP recommends a policy that governments and non-profits might want to:

  A. Change the Control basics

  B. Adopt or adapt

  C. handover the control to a third party (Consultants)

  D. None of these

  Correct Answer: B

• Question 116:

  Centralization is most cost effective than decentralization purchasing because:

  A. Purchases are better scheduled

  B. Goods are more systematically inspected

  C. Suppliers operate under a single set of rules and expectations

  D. All of these

  Correct Answer: D

• Question 117:

  GAAP requires that the fees for enterprise fund services like water, sewer, and electricity offset costs. As a policy decision, governing board members choose among four water and sewer rate structures. Those are all EXCEPT:

  A. Declining Block and Seasonal Rate

  B. Changing Rate

  C. Ascending block

  D. None of these

  Correct Answer: B

• Question 118:

  Local governments sometimes provide water and sewer service to customers outside their jurisdiction. These customers are typically charged _______ than those living inside the government because of extra cost of extending service to them.

  A. More

  B. Less

  C. Same

  D. It depends

  Correct Answer: A

• Question 119:

  Which one of the following options is NOT the part of major steps in Property tax cycle procedure?

  A. Appraisal

  B. Collection

  C. Asset taxable Value

  D. Recommendations

  Correct Answer: D

• Question 120:

  Which one of the following strategy is NOT employed by Local governments to collect delinquent taxes?

  A. Put, the names of delinquent taxpayers in the local paper. Surprisingly, prominent citizens might be delinquent. The newspaper notice for them is an embarrassing, but effective, prompt.

  B. Put, a lien on a delinquent taxpayer's paycheck if his or her place of work is known.

  C. Sell the parcel, using the proceeds to pay back taxes giving the remainder, if any, to the taxpayer.

  D. None of these

  Correct Answer: D