CGFM Online Practice Questions and Answers

Internal controls are the primary responsibility of:

A. the financial systems.

B. internal auditors.

C. management.

D. external auditors.

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. $10,550

C. $15,295

D. $16,900

Governmental funds, by comparison, focus on current financial resources, asking:

A. What is the statement of changes in fiduciary assets?

B. What transaction and events increased or decreased the resources available for spending in the near future?

C. What is government-wide statement of activities?

D. Both A and C

Small local governments and nonprofits use a third accounting basis, the cash basis, unapproved by GAAP. Cash accounting is used because ____________ accounting, though more accurate, is more complex and costly.

A. Deferral

B. Accrual

C. Modified

D. Both B and C

Similar accounting controls should be established over accounting for investment inventory management, cash disbursements, cash management and billing and receipt of taxes and utilities. Other effective internal control measures include which of the following?

A. Cancel voided forms

B. Trusting employees too much

C. Account for used or missing forms daily D. All of there

The principal advantage of a CIP (Capital improvement Program) is that______________, including their project designs, land acquisition, permitting, and acquiring financing.

A. It provides for sufficient lead time to plan for projects.

B. ensures the orderly replacement of capital facilities

C. Minimal costs of putting the asset in operating conditions

D. None of these

The financial section of financial reports contains:

A. The independent Auditors' Report

B. The management's Discussion and Analysis

C. Risk analysis

D. All EXCEPT "C"

In contrast to ______________, _____________ aims to beat the average market rate of return.

A. Active investing, passive investment management

B. Passive investment management active investing

C. Active investment, match disbursements

D. Cash horizon, match disbursements

Most Government Issue bond in denominations of $5000, which underwriters call:

A. `Five bonds"

B. Fives

C. Base bonds

D. Both AandB

The investment officer should report the status of investment at least quarterly (or monthly), including:

A. A list of individual securities held at the end of the reporting period

B. Realized and unrealized gains or losses resulting from appreciation or market value of securities

C. Average weighted yield to maturity of investments compared to applicable benchmarks.

D. All of these