APPENDIX 3
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Appendix 3: End-of-course self-assessment questions
End-of-course self-assessment questions
These questions are for your review. The answers to these questions are
provided at the end of the questions.
For those who have purchased a CPE credit option with the study guide ñ this is
not the CPE quiz that you must complete in order to obtain CPE credit. The
online CPE quiz can be accessed through the online study guides website.
For CGFM candidates ñ these questions are not designed to serve as sample
CGFM examination questions. Sample exam questions can be found at
www.agacgfm.org/cgfm/exams.
True False
_____ ____ 1.
ìFederalî means that power is distributed among different
levels of government and no one level of government has
complete authority over all areas of public policy.
_____ _____ 2.
The Constitution established the national government, but
does not provide for establishment of state governments.
_____ _____ 3.
The first 10 amendments to the Constitution are known as
the ìBill of Rights.î
_____ _____ 4.
Several states have given the executive branch line-item
veto authority over items in appropriation (budget) bills
passed by the legislative branch.
_____ _____ 5.
The U.S. Supreme Court does not have the authority to
rule on provisions of state constitutions.
_____ _____ 6.
The three types of local governments recognized by the
U.S. Census Bureau are county, municipality and
township.
_____ _____ 7.
A quasi-governmental entity blends characteristics of
governments and for-profit organizations.
_____ _____ 8.
An appropriated budget is a flexible planning document.
_____ _____ 9.
In a democracy, the people hold final authority over the
government and public policies. This concept is known as
supreme sovereignty.
_____ _____ 10. The appropriated budget may be viewed as the outcome
of the policy-making process.
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AGA Study Guide 1, 2016 Edition

Appendix 3: End-of-course self-assessment questions
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
The primary purpose of the budget process is to prioritize
government expenditures and to allocate the financial
resources to be raised to finance those expenditures.
The budget law or ordinance (appropriation) provides
legal authority to incur expenses and spend money.
Outputs and outcomes are used to measure and evaluate
government performance.
ERPs are designed to integrate only the finance and
accounting operations of an organization.
Continuity of Operations (COOP) planning refers to efforts
to prevent planned or unplanned disruptions of normal
operations.
Planning is often called the keystone in the arch of public
management.
Programming and budgeting have something in common:
both are based on decisions made during the planning
phase.
The most familiar and common type of budget is the
capital budget.
Internal controls are critical during the operations phase.
The Governmental Accounting Standards Board
establishes generally accepted accounting standards for
all levels of government.
Managerial accounting standards are also established by
GASB.
There are three organizations that establish GAAP in the
United States: GASB, FASB and FASAB.
Evaluation of government performance requires
information on outputs and outcomes, and the efficiency
and effectiveness with which they were achieved.
_____ _____ 24. Two main types of audits are financial and performance.
Online version, for personal use only AGA Study Guide 1, 2016 Edition

Appendix 3: End-of-course self-assessment questions
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
One of the most important functions of government is
determining how to finance specific activities.
For local governments, property taxes are typically the
major form of government revenue.
Income taxes are a major source of revenue for each level
of government.
Local governments are funded mainly through real
property taxes.
Excise taxes are sometimes referred to as ìluxury taxesî
or even ìsin taxes.î
Accountability is the keystone of democratic governments.
In financial management, the concept of public
accountability means that public officials are held
responsible for the assets at their disposal.
Accountability is established in constitutions and charters.
Government officials are accountable to citizens, investors
and creditors.
Accountability is ultimately assessed when officials stand
for elections.
Audit results are a major tool for assessing accountability.
One key to ethics is maintaining objectivity and
independence.
Adherence to a code of ethics encourages public
confidence and demonstrates that such confidence is well
founded.
When it comes to maintaining integrity, compromise is
always the best solution.
Social media are subject to the same regulations as other
forms of government communication.
Online version, for personal use only AGA Study Guide 1, 2016 Edition

Appendix 3: End-of-course self-assessment questions
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