CGFM

CGFM practice questions, page 5 of 8, with answer review and explanations.

Question 21

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

  1. an expense.
  2. an operating subsidy.
  3. an interfund loan.
  4. a transfer out.

Question 22

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

  1. must be approved by the Bureau for Program and Policy Coordination.
  2. is promulgated by FASAB.
  3. must be in full compliance with the U.S. Standard General Ledger.
  4. is defined by the CFO Act of 1990.

Question 23

Notes to the financial statements are:

  1. additional disclosures presented immediately following the government-wide and fund financial statements.
  2. RSI following the MD&A.
  3. supplemental information provided to transmit financial statements.
  4. optional disclosures of management analysis at the end of the financial statements.

Question 24

The Federal Credit Reform Act of 1990 requires that the cost of loan defaults and interest subsidies be estimated and recorded:

  1. on a FIFO basis as loans are made.
  2. when a defaulted loan is made good by the agency.
  3. on a present value basis when the loans are made or guarantees are issued.
  4. on a cash basis when the loan is paid.

Question 25

The internal control structure is designed to assist managers in:

  1. preparing consistent financial statements in accordance with applicable standards.
  2. guaranteeing the success of an organization's program and preventing fraud, waste and mismanagement of resources.
  3. ensuring that physical security controls prevent unauthorized individuals from accessing sensitive information.
  4. achieving agency program objectives and ensuring that functions are efficiently and effectively performed.