Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 141:

  Which of the following best suites this Question mark?

  

  A. Statement of Expenditures

  B. Interim statement

  C. Statement of cash flows

  D. None of these

  Correct Answer: C

• Question 142:

  In non-reciprocal interfund activities transfers without repayment may occur because?

  A. A proprietary fund is self-supporting

  B. A proprietary fund is not self-supporting

  C. For instance a public transit system may require a transfer form the general fund because fares and other revenues do not offset costs.

  D. None of there

  Correct Answer: BC

• Question 143:

  "A cash received as a loan is shown as revenue not as a liability, on the balance sheet. To correct for such cases, most cash accounting systems recognize not only cash but also other assets and liabilities arising through prior cash transactions. This adjustment, though, does not alter the fact that outstanding obligations have been incurred but not accounted for, thus overstating the available balance." This is an example of possible mishandlings after the selection of ________________.

  A. Cash basis of accounting

  B. Accrual basis of accounting

  C. Modified basis of accounting

  D. None of these

  Correct Answer: A

• Question 144:

  This exhibit shows that management should give thoughts to its coding system. A coding system structure with too many accounts is redundant but a too-abbreviated system does not sufficiently permit cost performance evaluation. Minimally organizations should budget by:

  

  A. Funds

  B. department

  C. Object of experiment

  D. Funds, Department and Object expenditure

  Correct Answer: D

• Question 145:

  Non-reciprocal interfund activities include interfund transfers of assets (e.g. cash, or goods) without repayment and ______________.

  A. Interfund reimbursement

  B. Interfund exchange

  C. Cost Allocation

  D. Both AandB

  Correct Answer: A

• Question 146:

  Because of the current financial measurement focus of the Governmental Funds, they do not report:

  A. Capital Assets

  B. Long-term debt

  C. Cash equivalents

  D. Either A or B

  Correct Answer: D

• Question 147:

  Small local governments and nonprofits use a third accounting basis, the cash basis, unapproved by GAAP. Cash accounting is used because ____________ accounting, though more accurate, is more complex and costly.

  A. Deferral

  B. Accrual

  C. Modified

  D. Both B and C

  Correct Answer: B

• Question 148:

  With a beginning departmental appropriation of $200,000, the water department orders $20,000 in chemicals. The actual invoice upon delivery is $18500. What is the available balance?

  A. 118,500

  B. 181,500

  C. 181,550

  D. 180,000

  Correct Answer: B

• Question 149:

  Governmental funds, by comparison, focus on current financial resources, asking:

  A. What is the statement of changes in fiduciary assets?

  B. What transaction and events increased or decreased the resources available for spending in the near future?

  C. What is government-wide statement of activities?

  D. Both A and C

  Correct Answer: B

• Question 150:

  Proprietary and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting. Proprietary funds focus on changes in economic resources, similar to private sector businesses, asking:

  A. What transaction and events have increased the fund's total economic resources during the reporting period, measured by changes in net assets like revenues and expenses?

  B. What transaction and events have decreased he fund's total economic resources during the reporting period, measured by changes in net assets like revenues and expenses?

  C. What transaction and events have increased or decreased he fund's total economic resources during the reporting period, measured by changes in net assets like revenues and expenses?

  D. None of these

  Correct Answer: C