AGA Certified Government Financial Manager Exam Practice Test

The auditors provide _______________ of the reliability of the financial statements.

The government finance association recommends public sale, but under which of the following condition:

1. The issue has on uninsured credit rating of A or above

2. The issue is not so large that it cannot be absorbed by the market.

3. The issue is not so small as to attract too few investors

4. Interest rates are stable and market demand is strong

5. The market view the issue as warily complex or innovation.

6. The issue is backed by full faith and credit or by a strong revenue system.

Types of so bonds are all of the following EXCEPT:

Like revenue bonds, ___________ bonds finance projects that are secured by revenue. Most of these bonds do not require voter approval, nor are they subject the Go cap.

The lease agreement contains a ___________ clause that permits the government to cancel the capital lease, without defaulting, by not appropriating payment for the lease.

Governments are increasingly using capital lease financing because it:

Revenue bonds are a liability limited to the pledged revenue. The issuer is thus not obligated _________ to repay the debt.