Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 181:

  Notes to the financial statements are:

  A. additional disclosures presented immediately following the government-wide and fund financial statements.

  B. RSI following the MDandA.

  C. supplemental information provided to transmit financial statements.

  D. optional disclosures of management analysis at the end of the financial statements.

  Correct Answer: A

• Question 182:

  The general ledger management function of a federal agency's financial system:

  A. must be approved by the Bureau for Program and Policy Coordination.

  B. is promulgated by FASAB.

  C. must be in full compliance with the U.S. Standard General Ledger.

  D. is defined by the CFO Act of 1990.

  Correct Answer: C

• Question 183:

  A payment to the capital projects fund is recorded in the general fund as:

  A. an expense.

  B. an operating subsidy.

  C. an interfund loan.

  D. a transfer out.

  Correct Answer: D

• Question 184:

  Fund-level financial statements are prepared to present:

  A. both a short and long term perspective on governmental finances.

  B. information on financing activities.

  C. information that is more narrowly focused than mandated by government standards.

  D. a detailed short term view of government services.

  Correct Answer: D

• Question 185:

  The CAFR includes all of the following EXCEPT the:

  A. basic financial statements.

  B. MDandA.

  C. RSI.

  D. PAR.

  Correct Answer: D

• Question 186:

  A county fire department receives property tax revenue on a 55% (December), 40% (April), 5% (June) basis. The uncollectible portion is .05%. If the department received $5.1 million in December, the annual property tax revenues will be:

  A. $10,200,000.

  B. $ 9,272,727.

  C. $ 9,268,091.

  D. $ 8,809,091.

  Correct Answer: C

• Question 187:

  Other factors being equal, when the cost of inventory has increased over several financial statement periods, an agency using LIFO will:

  A. need to restate their financial statements after five years of cost increases.

  B. show a higher value of ending inventory than a similar agency that uses FIFO.

  C. need to increase the audit frequency.

  D. reflect lower net income than an agency that uses the average cost inventory method.

  Correct Answer: D

• Question 188:

  Based upon the information below, for a governmental fund calculate the amount of revenues for the year using the modified accrual basis of accounting, assuming all deferred revenues are related to receivables.

  

  A. $278,000

  B. $245,000

  C. $247,000

  D. $253,000

  Correct Answer: C

• Question 189:

  An ISF has the following capital equipment in service for the stated time. Based upon the information below, using the straight-line method, what should be charged for depreciation at year-end?

  

  A. $8,155

  B. $6,438

  C. $4,267

  D. $2,171

  Correct Answer: B

• Question 190:

  The modified accrual basis of accounting is characterized by:

  A. revenues being recognized when realized.

  B. revenues being recognized when measurable and available.

  C. assets included in the general fixed asset account group.

  D. expenditures recorded when warrants are paid.

  Correct Answer: B