CMFO Municipal Finance Verified Multiple Choice and
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Process of inspecting real and personal property and recording its
attributes, quality, and condition. - ANSWER Data Collection
2. Formal approval by a two-thirds vote of town meeting or city council to
incur debt, in accordance with procedures stated in MGL c. 44 §§ 1, 2, 3, 4a,
6-15. - ANSWER Debt Authorization
3. Debt that is not in the first instance payable as a direct obligation of the
governmental unit but has been guaranteed by a pledge of its faith and
credit. The obligation to pay by the guarantor arises upon the default of the
borrower. An industrial revenue bond guaranteed by a municipality would
constitute contingent debt. - ANSWER Contingent Debt
4. The amount of debt carried by an issuer usually expressed as a measure of
value (e.g., debt as a percentage of assessed value, debt per capita, etc.).
Sometimes debt burden refers to debt service costs as a percentage of the
total annual budget. - ANSWER Debt Burden
5. Items that may become liabilities as the result of conditions undetermined
at a given date, such as guarantees, pending law suits, judgments under
, appeal, unsettled disputed claims, unfilled purchase orders, and
uncompleted contracts. - ANSWER Contingent Liabilities
6. An action taken by a community through a referendum vote to raise the
funds necessary to pay debt service costs for a particular project from the
property tax levy but outside of the limits under Proposition 2½. - ANSWER
Debt Exclusion
7. Annually updated and published by DLS, the Corp Book provides a listing of
the domestic and foreign corporations doing business in Massachusetts as
of January 1 that are subject to a tax or excise under MGL Chap. 59 (local
property tax), 60A (motor vehicle excise), or 63 (corporation excises). -
ANSWER Corporations Book (the Corp Book)
8. The maximum amount of debt a municipality may authorize for qualified
purposes under state law. Under MGL c. 44 § 10, debt limits are set at 5
percent of EQV. - ANSWER Debt Limit
9. A method used to estimate the present market value of an existing property
by calculating the current cost to rebuild it, then adjusting the cost
downward for depreciation based on the property's actual age. - ANSWER
Cost Approach
10.The repayment cost, usually stated in annual terms and based on an
amortization schedule, of the principal and interest on any particular bond
issue. - ANSWER Debt Service
,11.The process of immediately applying proceeds of refunding debt to redeem
the old debt. - ANSWER Current Refunding of Debt
12.Governmental fund type used to account for the accumulation or resources
for, and the payment of, general long-term debt principal and interest. -
ANSWER Debt Service Fund
13.A cyclical reinspection program involves completing an interior inspection of
properties. - ANSWER Cyclical Inspection Program
14.A report that local treasurers are required to file with DLS showing the
authorized and issued debt, retired debt, and interest paid by a community
during the prior fiscal year. - ANSWER Debt Statement
15.A reservation of funds to cover an obligation arising from a purchase order,
contract, or salary commitment chargeable to, but not yet paid from, a
specific appropriation account. - ANSWER Encumbrance
16.Amounts that do not meet the criteria for revenue recognition. - ANSWER
Deferred Revenue
17.The excess of expenditures over revenues during an accounting period. Also
refers to the excess of the liabilities of a fund over its assets. - ANSWER
Deficit
, 18.Long-term borrowing vehicle intended to fund operating deficits and
available to cities and towns only through special legislation. - ANSWER
Deficit Bonds
19.When a tax bill becomes past due, the collector sends a demand notice
requesting payment. The collector is required to issue a demand before
initiating a tax taking. - ANSWER Demand Notice
20.Authorized by MGL c. 44 § 53F½, an enterprise fund is a separate
accounting and financial reporting mechanism for municipal services for
which a fee is charged in exchange for goods or services. - ANSWER
Enterprise Fund
21.State department providing resources to school administrators, teachers,
students and parents in Massachusetts. - ANSWER Department of
Elementary and Secondary Education (DESE)
22.A vendor empowered to take enforcement and collection actions on behalf
of a community's collector. - ANSWER Deputy Collector
23.An estimate of the full and fair cash value (FFCV) of all property in the state
as of a certain taxable date. - ANSWER Equalized Valuations (EQVs)
24.A limitation on the use of all or part of the expendable balance in a
governmental fund. - ANSWER Designated Unreserved Fund Balance
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Process of inspecting real and personal property and recording its
attributes, quality, and condition. - ANSWER Data Collection
2. Formal approval by a two-thirds vote of town meeting or city council to
incur debt, in accordance with procedures stated in MGL c. 44 §§ 1, 2, 3, 4a,
6-15. - ANSWER Debt Authorization
3. Debt that is not in the first instance payable as a direct obligation of the
governmental unit but has been guaranteed by a pledge of its faith and
credit. The obligation to pay by the guarantor arises upon the default of the
borrower. An industrial revenue bond guaranteed by a municipality would
constitute contingent debt. - ANSWER Contingent Debt
4. The amount of debt carried by an issuer usually expressed as a measure of
value (e.g., debt as a percentage of assessed value, debt per capita, etc.).
Sometimes debt burden refers to debt service costs as a percentage of the
total annual budget. - ANSWER Debt Burden
5. Items that may become liabilities as the result of conditions undetermined
at a given date, such as guarantees, pending law suits, judgments under
, appeal, unsettled disputed claims, unfilled purchase orders, and
uncompleted contracts. - ANSWER Contingent Liabilities
6. An action taken by a community through a referendum vote to raise the
funds necessary to pay debt service costs for a particular project from the
property tax levy but outside of the limits under Proposition 2½. - ANSWER
Debt Exclusion
7. Annually updated and published by DLS, the Corp Book provides a listing of
the domestic and foreign corporations doing business in Massachusetts as
of January 1 that are subject to a tax or excise under MGL Chap. 59 (local
property tax), 60A (motor vehicle excise), or 63 (corporation excises). -
ANSWER Corporations Book (the Corp Book)
8. The maximum amount of debt a municipality may authorize for qualified
purposes under state law. Under MGL c. 44 § 10, debt limits are set at 5
percent of EQV. - ANSWER Debt Limit
9. A method used to estimate the present market value of an existing property
by calculating the current cost to rebuild it, then adjusting the cost
downward for depreciation based on the property's actual age. - ANSWER
Cost Approach
10.The repayment cost, usually stated in annual terms and based on an
amortization schedule, of the principal and interest on any particular bond
issue. - ANSWER Debt Service
,11.The process of immediately applying proceeds of refunding debt to redeem
the old debt. - ANSWER Current Refunding of Debt
12.Governmental fund type used to account for the accumulation or resources
for, and the payment of, general long-term debt principal and interest. -
ANSWER Debt Service Fund
13.A cyclical reinspection program involves completing an interior inspection of
properties. - ANSWER Cyclical Inspection Program
14.A report that local treasurers are required to file with DLS showing the
authorized and issued debt, retired debt, and interest paid by a community
during the prior fiscal year. - ANSWER Debt Statement
15.A reservation of funds to cover an obligation arising from a purchase order,
contract, or salary commitment chargeable to, but not yet paid from, a
specific appropriation account. - ANSWER Encumbrance
16.Amounts that do not meet the criteria for revenue recognition. - ANSWER
Deferred Revenue
17.The excess of expenditures over revenues during an accounting period. Also
refers to the excess of the liabilities of a fund over its assets. - ANSWER
Deficit
, 18.Long-term borrowing vehicle intended to fund operating deficits and
available to cities and towns only through special legislation. - ANSWER
Deficit Bonds
19.When a tax bill becomes past due, the collector sends a demand notice
requesting payment. The collector is required to issue a demand before
initiating a tax taking. - ANSWER Demand Notice
20.Authorized by MGL c. 44 § 53F½, an enterprise fund is a separate
accounting and financial reporting mechanism for municipal services for
which a fee is charged in exchange for goods or services. - ANSWER
Enterprise Fund
21.State department providing resources to school administrators, teachers,
students and parents in Massachusetts. - ANSWER Department of
Elementary and Secondary Education (DESE)
22.A vendor empowered to take enforcement and collection actions on behalf
of a community's collector. - ANSWER Deputy Collector
23.An estimate of the full and fair cash value (FFCV) of all property in the state
as of a certain taxable date. - ANSWER Equalized Valuations (EQVs)
24.A limitation on the use of all or part of the expendable balance in a
governmental fund. - ANSWER Designated Unreserved Fund Balance
