AGA CGFM Exam Practice Test Instant Access

Question 1

If a reportable condition might result in a material misstatement of financial statements, then it must be noted as a:

AMaterial weakness

BUnqualified report

CRevised situation

DAdverse condition

Answer : A

Question 2

There are _________ types of social obligation bonds.

AFour

BThree

CSix

DNone of these

Answer : D

Question 3

Bond proceeds funds capital assets (Known as fixed assets) that typically have useful lives of at least five or six years. These assets include:

AUtility lines

BUtility plant construction

CRecreational facilities

DAll of these

Answer : D

Question 4

Banks offer following short-term, loans, EXCEPT:

AA line of credit against which a specified dollar amount may be drawn with interest paid, usually monthly

BBond anticipation notes (BANs) in anticipation of future long-term financing

CTax anticipation notes (TANs) or revenue anticipation of taxes or other revenue that will be received

DNone of these

Answer : D

Question 5

To decide whether to issue bond publicly or privately ______________

AA cost comparison should be made

BA demo issue should be done

CAn international research on that issue should be done

DNone of these

Answer : A

Question 6

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

ALevy taxes

BGeneral fund revenues

CBoth of these

DNone of these

Answer : C

Question 7

All of the following are core banking services EXCEPT:

AInvestment management

BSecurity services

CReconciliation Services

DConcentration and Zero balance

Answer : A

AGA CGFM Certified Government Financial Manager Exam Practice Test