CGFM Online Practice Questions and Answers

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.

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

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

Centralization is most cost effective than decentralization purchasing because:

A. Purchases are better scheduled

B. Goods are more systematically inspected

C. Suppliers operate under a single set of rules and expectations

D. All of these

Vendors sometimes attempt to unduly influence governing board members, the CEO, and agency personnel to buy their goods or services. To avoid such situations, the governing board of a government should adopt an ethics policy. The NIGP recommends a policy that governments and non-profits might want to:

A. Change the Control basics

B. Adopt or adapt

C. handover the control to a third party (Consultants)

D. None of these

The local car dealer in town can provide the 10 new cars the city needs at cost of $150,000. If local preferences were given, what would the preference margin (PM) be, assuming the dealer pays $50,000 in local property and sales taxes and that the total sales by the dealer are $2,000,000?

A. $325 per vehicle

B. $375 per vehicle

C. $370 per vehicle

D. $380 per vehicle

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

To decide whether to issue bond publicly or privately ______________

A. A cost comparison should be made

B. A demo issue should be done

C. An international research on that issue should be done

D. None of these

Which of the following is not included in general guidelines for a diversified investment portfolio?

A. Do not over-concentrate securities from a specific issue or business sector

B. Invest in securities that have varying maturities

C. Limited investment in securities with higher credit risk

D. never invest in readily liquid securities

_______________ Details the principal steps and the dates by which the bonds will be sold.

A. Bond sale calendar

B. Bond indenture

C. Bond certificate

D. None of these