CGFM Online Practice Questions and Answers

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.

Upon completion of a performance audit the auditee will be provided with a report that includes the audit objectives, methodology, results and:

A. special purpose reports.

B. test of internal controls.

C. audit documentation.

D. audit scope.

The National Committee on Municipal Accounting (NCMA), sponsored by the Municipal Finance Officers Association (later Government Finance Association [GFOA]), published in what is called, for obvious reasons, the "Blue Book." The third Blue book was titled as:

A. Governmental Accounting, Auditing, and Financial Reporting

B. Federal Accounting and Financial Reporting

C. Blue book III

D. None of these

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

"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

Which one the following statement is NOT included in Green Purchasing?

A. Buying energy-efficient light bulbs

B. Buying batteries with mercury

C. Buying non-toxic cleaning products

D. Buying recycled paper and two-way envelopes

Once the budget has been adopted, the _______ executes it to ensure that legislative intent is met and the budget stays in balance.

A. CEO

B. CFO

C. Senior Accountant

D. None of these

____________ are in anticipation of improved market conditions in which to issue longterm debt. It typically matures within 15-45 days.

A. Bond anticipation notes (BANs)

B. Revenue anticipation notes (RANs)

C. Tax-exempt commercial paper (TECP)

D. Variable rate demand notes (VRDNs)

Localities contract with a consulting engineer to make a preliminary feasibility study of a project, prepare a detailed design and construction specifications, coordinate construction activities, and advice on special problems that might occur during construction. Consulting engineers are compensated in which of the following way/s?

A. A lump-sum payment when a project is clearly defined

B. Cost-plus-fixed-fee basis when a project is not clearly defined

C. A percentage of construction costs, the percentage being based on a scale developed by the Society of civil engineers

D. All of these

Coverage for losses due to employee dishonesty is _________ type of coverage for crimes in bond issues.

A. On-Promise

B. Fidelity

C. Off-Promise

D. Forgery

There are five types of repos. ___________ Repo is of one-day maturity Interest is based on the federal rate.

A. Tri-party

B. Open

C. Overnight

D. Term

Which of the following is not included in principal investment strategies?

A. Interest Rate anticipation

B. Sector Allocation

C. Yield curve anticipation

D. None of these

To decide whether to issue bond publicly or privately ______________

A. A cost comparison should be made

B. A demo issue should be done

C. An international research on that issue should be done

D. None of these

In issuing bonds, Governments usually take following steps EXCEPT:

A. Compensation balance

B. Decision on the advisability of issuing debt

C. How to finance the debt

D. Preparation, selling and administration of repayments.

The financial adviser:

A. prepares the overall financing plan

B. helps to obtain a rating and market the bonds when the financial adviser also acts as the underwriter

C. Secure and assess the property owners

D. Only AandB