APPENDIX 8
Online version, for personal use only

Appendix 8: 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.
1. Which of the following is true of the governmental environment?
a.
The federal government has primary authority for national and
international affairs.
b. The federal government has all powers not set out in the U.S.
Constitution.
2. Which of the following is true concerning accountability in government?
a.
Public officials have to be accountable to the citizens.
b. Financial reporting plays a minor role in fulfilling government
accountability.
3. Which of the following is true about interperiod equity?
a. Current-year services should be financed with current-year
revenues.
b. Current-year services may be financed with long-term funds.
4. Which of the following is true about government financial reporting?
a.
Citizens and taxpayers concentrate on the governmentís
accountability for the management of public tax dollars.
b. Government financial reports are for external users.
5. Which of the following is true concerning the need for financial reporting?
a.
It provides information to help assess accountability.
b. It provides information to determine the overall effectiveness of the
government.
6. Which of the following is true concerning government reporting?
a.
Financial reports have their limitations.
b. Financial reports are the only source of information needed by
users.
Online version, for personal use only
AGA Study Guide 2, 2016 Edition

Appendix 8: End-of-course self-assessment questions
7. Which of the following is true concerning the need for reporting standards?
a.
They provide assistance to users of financial information if
standards are established.
b. They provide absolute assurance that the reports are fairly stated.
8. Which of the following is true?
a.
GASB establishes standards for state and local governments.
b. FASB establishes standards for the federal government.
9. Which of the following is true about standard-setting?
a.
Each standards-setting board follows due process in setting
standards.
b. Each standard-setting board has the authority to require preparers
of financial statements to follow their standards.
10.Which of the following is true concerning the due process?
a.
Due process includes meetings open to the public.
b. The final stage of the due process is the issuance of an exposure
draft.
11.Which of the following is true about what general purpose external
financial reports tell users?
a.
They provide the financial position of the government.
b. They provide a projection of the future financial position of the
government.
12.Which of the following is true about measurement focus of accounting?
a.
Generally accepted accounting principles mandate the
measurement focus that should be used for external reporting.
b. Generally accepted auditing standards mandate the measurement
focus that should be used for external reporting.
13.Which of the following is true concerning measurement focus of
accounting?
a.
The economic resources measurement focus recognizes the net
economic effect of transactions on all resources.
b. The economic resources measurement focus recognizes the net
economic effect of financial transactions only.
14.Which of the following is true concerning economic resources
measurement focus?
a.
Fixed assets are capitalized and depreciated.
b. Fixed assets are expensed when purchased.
Online version, for personal use only
AGA Study Guide 2, 2016 Edition

Appendix 8: End-of-course self-assessment questions
15.Which of the following is true concerning debt proceeds?
a.
Debt proceeds provide capital to the organization.
b. Debt proceeds are never shown as a liability to the organization.
16.Which of the following is true concerning current financial resources?
a.
The emphasis is on resources that can be used to provide the
goods and services during the reporting period.
b. The emphasis is on resources that can be used to provide the
goods and services for future periods.
17.Which of the following is true concerning current financial resources?
a.
Current financial resources consist primarily of cash and claims to
or against cash.
b. Current financial resources consist primarily of long-term
investments to offset future claims.
18.Which of the following is true concerning basis of accounting in
government?
a.
All governments use the modified accrual basis of accounting.
b. Only state and local governments use the modified accrual basis ...


















































































































To continue, please log in or purchase access to this product.

Existing User: Please log in using the box at the top right of the page.

New User: See below or visit the Bookstore for all product options.