NJ CMFO Exam Questions and Answers
Graded A+
A governing body may increase its appropriations cap to? - Correct answer-3.5%
by passing a cost of living adjustment ordinance
The Flexible Chart of Accounts is a coding system which cartegorizes - Correct
answer-Budgets appropriations and revenue
The Reserve for Uncollected Taxes is? - Correct answer-An appropriation required
by statue to cover the cash flow requirements of the school, county, and municipal
appropriations
The minimum useful life of a capital item under the Local Bond Law is? - Correct
answer-Five years
The different amount of appropriations for the budget year and the anticipated
revenue is the? - Correct answer-The amount to be raised by taxation
The Local Budget Law is reference as NJSA? - Correct answer-40A:4-1, et seq.
For a given budget year, budget transfers between appropriation RESERVES are
permitted - Correct answer-During the first three months of the succeeding year
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, A municipal budget constitutes two functions of authority which are: - Correct
answer-The establishments of appropriations necessary to meet expenditures and
the authority to tax to provide revenue.
Resolutions authorizing the transfer of appropriations require what vote of the full
membership of the governing body? - Correct answer-2/3rds of the full
membership
The four major categories of revenues anticipated in a municipal budget are? -
Correct answer-surplus, miscellaneous revenue, taxes, and delinquent taxes
The lower the estimated tax collection rate, the: - Correct answer-higher the
reserve for uncollected taxes
The certification of new construction or improvements by the local tax assessor,
and the amount of local taxes that would have been generated would increase: -
Correct answer-The CAP base
What revenue is determined by subtracting from the total general appropriations in
the budget? the surplus anticipated, miscellaneous revenues and receipts from
delinquent taxes? - Correct answer-Amount to be raised by taxes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Graded A+
A governing body may increase its appropriations cap to? - Correct answer-3.5%
by passing a cost of living adjustment ordinance
The Flexible Chart of Accounts is a coding system which cartegorizes - Correct
answer-Budgets appropriations and revenue
The Reserve for Uncollected Taxes is? - Correct answer-An appropriation required
by statue to cover the cash flow requirements of the school, county, and municipal
appropriations
The minimum useful life of a capital item under the Local Bond Law is? - Correct
answer-Five years
The different amount of appropriations for the budget year and the anticipated
revenue is the? - Correct answer-The amount to be raised by taxation
The Local Budget Law is reference as NJSA? - Correct answer-40A:4-1, et seq.
For a given budget year, budget transfers between appropriation RESERVES are
permitted - Correct answer-During the first three months of the succeeding year
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, A municipal budget constitutes two functions of authority which are: - Correct
answer-The establishments of appropriations necessary to meet expenditures and
the authority to tax to provide revenue.
Resolutions authorizing the transfer of appropriations require what vote of the full
membership of the governing body? - Correct answer-2/3rds of the full
membership
The four major categories of revenues anticipated in a municipal budget are? -
Correct answer-surplus, miscellaneous revenue, taxes, and delinquent taxes
The lower the estimated tax collection rate, the: - Correct answer-higher the
reserve for uncollected taxes
The certification of new construction or improvements by the local tax assessor,
and the amount of local taxes that would have been generated would increase: -
Correct answer-The CAP base
What revenue is determined by subtracting from the total general appropriations in
the budget? the surplus anticipated, miscellaneous revenues and receipts from
delinquent taxes? - Correct answer-Amount to be raised by taxes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
