CGFM Online Practice Questions and Answers

Debt refunding proceeds would be reported as:

A. a revenue.

B. a liability.

C. an other financial use on the operating statement.

D. an other financing source on the operating statement.

The intended purpose of The Single Audit Act is to:

A. improve financial management of state financial programs.

B. help states schedule federal audits on a grant-by-grant basis.

C. promote cooperation between auditors.

D. perform audits under FASAB standards.

Gas, taxes restricted for road maintenance and repair, property taxes restricted for downtown development, property taxes restricted for fire tax districts and state tobacco settlement funds restricted for smoking reduction and economic development are settled by Government with the help of:

A. Major Federal Government Funds

B. Financial sector Funds

C. Special revenue funds

D. None of these

The Unites Way receives $1,500,000 in funds in a lump sum at the beginning of the year and has constant cost and predictable annual cash outlays. Eight percent is estimated to be earned at securities with each security transaction costing $40 plus 0.5 percent of the dollar amount received. What will be the optimum security scale using Baumol Model?

A. $38700

B. $38730

C. $38830

D. None of these

The financial adviser gives advice regarding the financial feasibility of a bond. Thus, the financial adviser's fee should not be contingent on a bond's sale because of:

A. The potential conflict of interest

B. The nonequilibrium of market prices

C. Unavailability of large local units

D. None of these

A well-managed risk management program has following preconditions EXCEPT:

A. A centralized operation with trained personnel

B. A formal statement of policies

C. A good recordkeeping system

D. None of these

Small local governments in states not requiring a financial audit may choose:

A. A compilation

B. Review or Member's audit

C. Agreed-upon procedures

D. Any of these

Which of the following is NOT included in RFPs (Request for proposals) regarding audit?

A. Scope of work

B. Compensations and Terms of payment

C. Selection Criteria

D. Services furnished to the Auditor

As the security of Go debt issue, state and local governments pledge their Faith and credit (their general taxing power); however revenue bonds are not backed by full faith or credit. Instead, the bond security agreement pledges a _________, known as the debt cover.

A. Go debt capacity

B. Go debt use capacity

C. Rate covenant

D. None of These

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. Underwriter syndicate

B. Bond counsel

C. Financial adviser

D. None of these