CGFM EXAM 2 2026 PRACTICE TEST PAPER
BUDGETING AND FISCAL MANAGEMENT
REVIEW SHEET FULL SOLUTIONS
◉ imputed costs. Answer: costs incurred by a federal entity for
goods and services provided and paid for in total, or in part, by other
federal entities
◉ Accumulated Depreciation is which type of account. Answer:
contra asset
◉ Preferred Costing Methodology. Answer: Directly tracing costs
wherever feasible and economically practical
◉ due process document describing various methods of accounting
for a transaction and asks respondents to provide their views on the
preferred method. Answer: discussion memorandum
◉ What is the correct accounting entry when one government
agency receives a grant from another government agency?. Answer:
The grantor agency recognizes liability and the recipient agency
recognizes non-exchange revenue when the recipient agency meets
all eligibility requirements.
,◉ GASB, FASB, and FASAB have been designated standard-setting
bodies for accounting and reporting standards by the. Answer:
AICPA
◉ Federal appropriations provide a legal authority for undertaking
programs, allocating resources, and. Answer: expending funds
◉ Federal appropriations law can be categorized into which three
topical areas?. Answer: Purpose, time, and amount (PTA)
◉ What are the basic types of budget authority used in the Federal
Government? (6). Answer: 1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
◉ In financial reporting, consistency of communication means.
Answer: if accounting principles have changed or if the financial
reporting entity has changed, the nature and reason for the change,
as well as the effect of the change, should be disclosed.
◉ Budgeting is an element of which policy?. Answer: fiscal
, ◉ Another term for the federal government baseline budget is.
Answer: a current level of service budget.
◉ As described by FASAB, the four groups of people to whom the
government is accountable and are, therefore, potential users of
federal financial statements are. Answer: citizens, Congress,
executives, and program managers.
◉ When establishing an allowance for doubtful accounts, the journal
entry required is a debit to. Answer: Bad Debts Expense and a credit
to the Allowance for Doubtful Accounts.
◉ Street resurfacing is a type of which budget element?. Answer:
program
◉ Which of the following sources of accounting principles is at the
top of the GASB hierarchy?. Answer: Generally Accepted Accounting
Principles
◉ The role of the International Public Sector Accounting Standards
Board is to. Answer: set standards for the general purpose financial
statements of international public sector entities.
BUDGETING AND FISCAL MANAGEMENT
REVIEW SHEET FULL SOLUTIONS
◉ imputed costs. Answer: costs incurred by a federal entity for
goods and services provided and paid for in total, or in part, by other
federal entities
◉ Accumulated Depreciation is which type of account. Answer:
contra asset
◉ Preferred Costing Methodology. Answer: Directly tracing costs
wherever feasible and economically practical
◉ due process document describing various methods of accounting
for a transaction and asks respondents to provide their views on the
preferred method. Answer: discussion memorandum
◉ What is the correct accounting entry when one government
agency receives a grant from another government agency?. Answer:
The grantor agency recognizes liability and the recipient agency
recognizes non-exchange revenue when the recipient agency meets
all eligibility requirements.
,◉ GASB, FASB, and FASAB have been designated standard-setting
bodies for accounting and reporting standards by the. Answer:
AICPA
◉ Federal appropriations provide a legal authority for undertaking
programs, allocating resources, and. Answer: expending funds
◉ Federal appropriations law can be categorized into which three
topical areas?. Answer: Purpose, time, and amount (PTA)
◉ What are the basic types of budget authority used in the Federal
Government? (6). Answer: 1. Appropriations
2. Contract Authority
3. Borrowing Authority
4. Monetary Credits
5. Offsetting Collections and Receipts
6. Loan and Loan Guarantee Authority
◉ In financial reporting, consistency of communication means.
Answer: if accounting principles have changed or if the financial
reporting entity has changed, the nature and reason for the change,
as well as the effect of the change, should be disclosed.
◉ Budgeting is an element of which policy?. Answer: fiscal
, ◉ Another term for the federal government baseline budget is.
Answer: a current level of service budget.
◉ As described by FASAB, the four groups of people to whom the
government is accountable and are, therefore, potential users of
federal financial statements are. Answer: citizens, Congress,
executives, and program managers.
◉ When establishing an allowance for doubtful accounts, the journal
entry required is a debit to. Answer: Bad Debts Expense and a credit
to the Allowance for Doubtful Accounts.
◉ Street resurfacing is a type of which budget element?. Answer:
program
◉ Which of the following sources of accounting principles is at the
top of the GASB hierarchy?. Answer: Generally Accepted Accounting
Principles
◉ The role of the International Public Sector Accounting Standards
Board is to. Answer: set standards for the general purpose financial
statements of international public sector entities.
