CGFM Online Practice Questions and Answers

A discretionary grant is characterized by a:

A. transfer of funds based upon a formula.

B. transfer of funds for broadly-defined purposes.

C. transfer of funds for specific purposes.

D. voluntary contribution that confers no rights nor benefits to the giver.

Based upon the performance measures report below provided to a local governmental oversight committee, what conclusions may be made?

A. More fire engines and fire companies are needed.

B. The arson task force fielded in FY07 is having a significant impact.

C. A fire engine bond issuance is needed.

D. State fire marshal mandates are being met.

Other factors being equal, when the cost of inventory has increased over several financial statement periods, an agency using LIFO will:

A. need to restate their financial statements after five years of cost increases.

B. show a higher value of ending inventory than a similar agency that uses FIFO.

C. need to increase the audit frequency.

D. reflect lower net income than an agency that uses the average cost inventory method.

Which of the following best suites this Question mark?

A. Statement of Expenditures

B. Interim statement

C. Statement of cash flows

D. None of these

Local governments sometimes provide water and sewer service to customers outside their jurisdiction. These customers are typically charged _______ than those living inside the government because of extra cost of extending service to them.

A. More

B. Less

C. Same

D. It depends

Credit services, Trustee and related services and investment management services are the Secondary services provided by banks.

A. True

B. False

C. It depends

D. Both A and C

Commercial banks issue ______________ which give local governments the money to refinance or refund debt at a lower interest rate.

A. (LOCs) Letters of credit

B. GO Bonds

C. SO Bonds

D. State Bonds

If a building originally valued at $160,000 appreciates to $300,000 and is insured by an 80% coinsurance clause, then 80% of the value ($320,000) must be insured. If the building is still insured at only $160,000 and a $100,000 loss occurs, the loss would be:

A. $ 40,000

B. $50,000

C. $44,000

D. $60,000

A way to transfer risks is by joining a pool. Pools like those offered by leagues of municipalities and associations of country commissioners provide an array of services, including:

A. Safety environment

B. Contract review

C. Claims and underwriting services

D. All of these

The financial adviser:

A. prepares the overall financing plan

B. helps to obtain a rating and market the bonds when the financial adviser also acts as the underwriter

C. Secure and assess the property owners

D. Only AandB