Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 151:

  In Government Organizations, a modified approach for depreciation is used. This modified approach expenses maintenance cost and capitalizes additions and improvements, but it does not record depreciation charges. The logic behind the modified approach is:

  A. That buildings have an indefinite useful life, making depreciated charges unnecessary.

  B. Changes in fiduciary assets

  C. Changes in proprietary fund statement of revenues, expenses, and charges in fund assets.

  D. All of these

  Correct Answer: A

• Question 152:

  Pension trust, investment trust, private-purpose trust, and agency are the types of:

  A. Internal Funds

  B. Capital Assets

  C. Private purpose Trust Funds

  D. None of these

  Correct Answer: D

• Question 153:

  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). And, there are 255 working days per year, and each order requires three working days of lead time. What is the reorder point?

  A. 19

  B. 17

  C. 15

  D. 18

  Correct Answer: A

• Question 154:

  If a government creates an internal service funds, GAAP require that the ______ cost of services, _________ the cost of capital assets be recovered through the user fee.

  A. Full, Including

  B. Full, excluding

  C. Half, Including

  D. Either A or C

  Correct Answer: A

• Question 155:

  Enterprise funds and internal service funds are the two types of ______________.

  A. Debt Service Funds

  B. Proprietary Funds

  C. Permanent Funds

  D. Capital project Funds

  Correct Answer: B

• Question 156:

  Cost Allocation basis for all internal funds is:

  A. Same

  B. Different for different types of funds

  C. Conditional

  D. It depends

  Correct Answer: B

• Question 157:

  Gas, taxes restricted for road maintenance and repair, property taxes restricted for downtown development, property taxes restricted for fire tax districts and state tobacco settlement funds restricted for smoking reduction and economic development are settled by Government with the help of:

  A. Major Federal Government Funds

  B. Financial sector Funds

  C. Special revenue funds

  D. None of these

  Correct Answer: C

• Question 158:

  Federal Government requires accounting records on:

  A. GGAP-basis

  B. Non-GAAP basis

  C. It depends

  D. Both AandB

  Correct Answer: C

• Question 159:

  Eleven different types of funds, issued by Government Authorities, are classified into three major groups. Which one of the following statements represents those three groups?

  A. Governmental, Proprietary and Fiduciary

  B. Governmental, State/Provincial, Local

  C. Governmental, Fixed, Temporary

  D. Yearly, Semi annually and Quarterly

  Correct Answer: A

• Question 160:

  _______________ had separate principles for ___________________ in the past.

  I. Colleges and universities

  II. Hospital and health –care entities

  III. Voluntary health and welfare organization

  IV.

  Nonprofit organization

  A.

  Federal Government

  B.

  State Government

  C.

  Local Government

  D.

  Non-profit Organization

  Correct Answer: D