Achieve the CGFM Exam Best Results with Help from AGA Certified Experts
Provide CGFM Practice Test Engine for Preparation
The CGFM certification program is open to individuals who are currently working or have worked in the government financial management sector. Certified Government Financial Manager (CGFM) certification program requires candidates to pass three exams covering government financial management, government accounting, and financial reporting and analysis.
The CGFM certification consists of three exams designed to test the knowledge of financial management in the public sector. CGFM exams cover various topics such as financial reporting, auditing, budgeting, financial analysis, and ethics in government financial management. CGFM exams are computer-based and available at testing centers. Each exam is timed and consists of multiple-choice questions.
NEW QUESTION # 13
The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00.
The unit cost is $3.50. The carrying cost is 20 percent, and the carrying cost per unit is
&0.70(0.20x$3.50). And, there are 255 working days per year, and each order requires three working days of lead time. What is the reorder point?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION # 14
Under the control environment component of internal control, management should
- A. demonstrate a commitment to integrity and ethical values.
- B. communicate quality information to achieve the entity's objectives.
- C. implement control activities through policies.
- D. establish and operate activities to monitor the internal control system.
Answer: A
Explanation:
* Control Environment Component:
* The control environment is the foundation of an internal control system, setting the tone at the top.
* Demonstrating integrity and ethical values is the first principle of the control environment, as outlined in theCOSO Internal Control Framework.
* Explanation of Answer Choices:
* A. Demonstrate a commitment to integrity and ethical values: Correct. This is a foundational principle of the control environment.
* B. Implement control activities through policies: This relates to the "Control Activities" component, not the control environment.
* C. Communicate quality information to achieve the entity's objectives: This relates to the
"Information and Communication" component.
* D. Establish and operate activities to monitor the internal control system: This relates to the
"Monitoring Activities" component.
References:
* COSO,Internal Control - Integrated Framework.
* GAO,Standards for Internal Control in the Federal Government (Green Book).
NEW QUESTION # 15
Governmental Organizations also provide funds to:
- A. Non-Profit Organizations
- B. SMEs
- C. International Organizations or MNCs
- D. Profit Organizations
Answer: A
NEW QUESTION # 16
The
1. Renders an opinion as to whether the bonds are tax exempt.
2. Deter-mines whether a governments has legal authority to issue the bonds.
3. Drafts the bonds resolution the ordinance, and notice of election; and
4. Reviews the bidding information given to underwriter.
- A. Financial adviser
- B. None of these
- C. Bond counsel
- D. Underwriter syndicate
Answer: C
NEW QUESTION # 17
Percentage of personnel, percentage of expense and the federal method are the methods of cost allocation commonly used in:
- A. Local Government accounting
- B. Federal organizations
- C. Governmental Organizations
- D. Non-profit Organizations
Answer: D
NEW QUESTION # 18
Internal controls are the primary responsibility of:
- A. internal auditors.
- B. the financial systems.
- C. external auditors.
- D. management.
Answer: D
NEW QUESTION # 19
Assume an inventory has an average monthly amount on hand of $200,000 and annual usage of $800,000.
The amount of inventory turns is:
- A. 3 turns
- B. 4 turns
- C. 5 turns
- D. 8 turns
Answer: B
NEW QUESTION # 20
What is the present value of $25,000 to be received 10 years from today if the opportunity rate is 4%, the current tax rate is 1% and the expected future value is 9%?
- A. $ 9,706
- B. $16,900
- C. $15,295
- D. $10,550
Answer: B
NEW QUESTION # 21
Assume an inventory has an average monthly amount on hand of $200,000 and annual usage of $800,000. The amount of inventory turns is:
- A. 3 turns
- B. 4 turns
- C. 5 turns
- D. 8 turns
Answer: B
NEW QUESTION # 22
Simplified acquisition processes assist an agency by
- A. maintaining the competitive bid requirement and allowing credit card purchases.
- B. increasing the number of requisitions processed.
- C. providing access to bulk purchase discounts and reducing administrative costs.
- D. reducing acquisition staff and managerial oversight.
Answer: C
Explanation:
What Are Simplified Acquisition Processes?Simplified acquisition processes are procurement methods designed to streamline purchasing for government agencies. These processes reduce the administrative burden for smaller purchases, typically below a certain dollar threshold (as defined in theFederal Acquisition Regulation (FAR)).
How Do These Processes Assist Agencies?
* Bulk Purchase Discounts:Simplified acquisition allows agencies to leverage economies of scale and negotiate bulk purchase discounts for commonly used goods and services.
* Reduced Administrative Costs:By simplifying documentation, reducing oversight requirements, and accelerating the approval process, these methods lower administrative costs and increase efficiency.
Why Other Options Are Incorrect:
* A. Maintaining the competitive bid requirement and allowing credit card purchases:While simplified acquisitions may allow credit card purchases, the focus is not maintaining competitive bids but reducing costs and streamlining the process.
* C. Increasing the number of requisitions processed:The goal is efficiency, not increasing the volume of requisitions.
* D. Reducing acquisition staff and managerial oversight:These processes may simplify oversight but do not aim to reduce staff; instead, they help existing staff work more efficiently.
References and Documents:
* Federal Acquisition Regulation (FAR) Part 13:Covers simplified acquisition processes and their intended benefits.
* GAO Reports on Federal Procurement (2020):Highlights the cost savings and efficiencies gained through simplified acquisition methods.
NEW QUESTION # 23
A state transfers cagh to a broker and the broker transfers securities to the state, promising to repay the cash plus interest in exchange for the return of the same securities. This transaction is an example of
- A. a mutual buy-sell agreement.
- B. an arbitrage agreement.
- C. a reverse repurchase agreement.
- D. a repurchase agreement.
Answer: D
Explanation:
* Definition of a Repurchase Agreement (Repo):A repurchase agreement is a short-term financial transaction where one party sells securities to another with an agreement to repurchase them at a later date for a specified price, which includes interest. It functions as a secured loan.
* Transaction Description:
* The state transfers cash to a broker.
* The broker provides securities as collateral and agrees to repay the cash plus interest in exchange for the return of the same securities.This arrangement matches the definition of arepurchase agreement.
* Explanation of Answer Choices:
* A. Arbitrage agreement: Arbitrage involves exploiting price differences in markets, unrelated to this transaction.
* B. Repurchase agreement: Correct, as it fits the definition.
* C. Mutual buy-sell agreement: This involves agreements to buy and sell assets, unrelated to this financial transaction.
* D. Reverse repurchase agreement: Incorrect, as the state would be the borrower, not the lender, in a reverse repo.
References:
* U.S. Department of the Treasury,Guide to Federal Investments.
* Financial Accounting Standards Board (FASB),Accounting for Repurchase Agreements.
NEW QUESTION # 24
Which one the following statement is NOT included in Green Purchasing?
- A. Buying energy-efficient light bulbs
- B. Buying recycled paper and two-way envelopes
- C. Buying non-toxic cleaning products
- D. Buying batteries with mercury
Answer: D
NEW QUESTION # 25
Non-property tax and non-local tax, moral obligation, special assessment and special or limited tax are the types of:
- A. Go bonds
- B. None of these
- C. So bonds
- D. Revolving loan funds
Answer: C
NEW QUESTION # 26
Which of the following includes the aggregate level and types of risks that the organization is willing to assume in order to achieve its Strategic objectives?
- A. risk and control evaluation matrix
- B. risk and control assessment tool
- C. risk profile
- D. risk register
Answer: C
Explanation:
What Is a Risk Profile?
* Arisk profilerepresents the aggregate level and types of risks that an organization is willing to accept in pursuit of its strategic objectives. It aligns with the organization's risk appetite and tolerance and helps prioritize and manage risks effectively.
* This profile typically includes key risks, their likelihood, and potential impact, as well as how those risks align with the organization's mission and strategy.
Why Is Risk Profile the Correct Answer?
* The risk profile provides an enterprise-wide view of risks and their potential influence on achieving strategic goals. It aggregates risks across all levels of the organization and ensures that management considers them when making decisions.
Why Other Options Are Incorrect:
* A. Risk Register:While a risk register includes detailed descriptions of individual risks, it does not aggregate risk levels or types across the organization.
* B. Risk and Control Evaluation Matrix:This tool evaluates specific risks and controls but does not capture the organization's overall risk appetite or profile.
* D. Risk and Control Assessment Tool:This is a generic tool for assessing risks and controls, not for aggregating the overall risk picture.
References and Documents:
* OMB Circular A-123:Specifies the need for agencies to maintain a risk profile as part of enterprise risk management.
* COSO ERM Framework (2017):Defines a risk profile as central to managing risks in alignment with strategic objectives.
NEW QUESTION # 27
The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00. The unit cost is $3.50.
The carrying cost is 20 percent, and the carrying cost per unit is &0.70(0.20x$3.50). What is the economic order quantity?
- A. None of these
- B. 130 oil filters
- C. 150 oil filters
- D. 155 oil filters
Answer: C
NEW QUESTION # 28
Number of students enrolled, cost per student enrolled, year-end state test score and critical thinking and application of knowledge. This is an example of measures in education sector. Match these steps with the following appropriate list of types of measures.
- A. Output, Efficiency Measures, Intermediate Outcome, End Outcome
- B. Output, Intermediate Outcome, Efficiency Measures, End Outcome
- C. Output, Intermediate Outcome, End Outcome, Efficiency Measures
- D. Efficiency Measures, Intermediate Outcome, End Outcome, Output
Answer: A
NEW QUESTION # 29
Commercial banks issue ______________ which give local governments the money to refinance or refund debt at a lower interest rate.
- A. GO Bonds
- B. SO Bonds
- C. (LOCs) Letters of credit
- D. State Bonds
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION # 30
A key objective of a performance audit is
- A. providing an opinion on the entity's financial statement.
- B. assessing program effectiveness, economy and efficiency.
- C. issuing a report of findings based upon an agreed-upon procedure.
- D. providing an opinion on a subject matter that is the responsibility of another party.
Answer: B
Explanation:
* Performance Audit Objectives:
* Performance audits evaluate theeffectiveness,efficiency, andeconomyof government programs, operations, or activities.
* These audits focus on improving operations, achieving program goals, and ensuring responsible use of public resources.
* Explanation of Answer Choices:
* A. Providing an opinion on the entity's financial statement: This is the objective of a financial statement audit, not a performance audit.
* B. Assessing program effectiveness, economy, and efficiency: Correct. This is the primary objective of performance audits.
* C. Providing an opinion on a subject matter that is the responsibility of another party: This aligns with attestation engagements, not performance audits.
* D. Issuing a report of findings based upon an agreed-upon procedure: This describes agreed- upon procedures engagements, not performance audits.
References:
* GAO,Government Auditing Standards (Yellow Book).
* Association of Government Accountants (AGA),Performance Auditing Guidance.
NEW QUESTION # 31
A government agency's mission statement should include:
- A. organizational structure and hierarchy.
- B. services and accomplishments.
- C. major functions and goals.
- D. performance measures and reports.
Answer: C
NEW QUESTION # 32
There are same budget reserves for all types of budgets (Federal, State and Local).
- A. It depends
- B. All EXCEPT "Local Government Budget"
- C. False
- D. True
Answer: C
NEW QUESTION # 33
......
Detailed New CGFM Exam Questions for Concept Clearance: https://www.torrentvce.com/CGFM-valid-vce-collection.html
CGFM Exam Preparation Material with New CGFM Dumps Questions.: https://drive.google.com/open?id=1QHHk9kfZM0RbVzd2qRaL0lt2ro8G7tnI