CGFM Online Practice Questions and Answers

FASAB has established_______ accounting Standards.

A. 35

B. 20

C. 30

D. 27

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

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

Funds accounts for all unrestricted contributions, gifts and other income that can be used for any purpose are known as?

A. Current restricted funds

B. General funds

C. Current funds

D. All of there

Assume an invoice with credit terms of 2%/10, net30. The interest charge is 2% of $1000, or $20; the principal is $980; and the days of principal borrowed are the 20 days of credit. What is the interest rate offered if the discount is taken?

A. 37%

B. 37.23%

C. 37.33%

D. 37.35%

Small local governments in states not requiring a financial audit may choose:

A. A compilation

B. Review or Member's audit

C. Agreed-upon procedures

D. Any of these

Types of so bonds are all of the following EXCEPT:

A. Special assessment and special or limited tax

B. Non-property tax and non-local ax

C. Moral obligation

D. All of these

Which of the following is not included in long-term credit products offered by banks?

A. Long-term capital lease agreements

B. Bonds agreements

C. A line of credit

D. None of these

Bond proceeds funds capital assets (Known as fixed assets) that typically have useful lives of at least five or six years. These assets include:

A. Utility lines

B. Utility plant construction

C. Recreational facilities

D. All of these

Most States require that local government engage the services of an _________ firm to audit their financial statements.

A. Government accountability office

B. Certified public accounting firm

C. Government finance officers association

D. None of these