CGFM - Latest Flexible Certified Government Financial Manager (CGFM) Learning Mode
CGFM - Latest Flexible Certified Government Financial Manager (CGFM) Learning Mode
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AGA Certified Government Financial Manager (CGFM) Sample Questions (Q85-Q90):
NEW QUESTION # 85
on the bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes.
- A. Premium
- B. Discount
- C. Interest
- D. None of these
Answer: C
NEW QUESTION # 86
The Prompt Payment Act requires federal agencies to pay
- A. invoices immediately when received.
- B. invoices no later than 60 days after receipt of the invoice.
- C. interest when an invoice is paid late.
- D. interest on intragovernmental invoices.
Answer: C
Explanation:
* Overview of the Prompt Payment Act (PPA):
* ThePrompt Payment Act (31 U.S.C. Chapter 39)requires federal agencies to pay vendors for goods and services in a timely manner.
* If payment is not made within the required time frame (usually 30 days after receiving a proper invoice), the agency must payinterest penaltiesto the vendor for the late payment.
* Explanation of Answer Choices:
* A. Invoices immediately when received: Incorrect. Federal agencies are not required to pay invoices immediately; they must process payments within the specified timeframe.
* B. Interest when an invoice is paid late: Correct. Agencies must pay interest penalties for late payments.
* C. Invoices no later than 60 days after receipt of the invoice: Incorrect. The standard timeframe is 30 days unless otherwise specified in the contract.
* D. Interest on intragovernmental invoices: Incorrect. The PPA does not apply to intragovernmental transactions.
References:
* Prompt Payment Act,31 U.S.C. Chapter 39.
* U.S. Department of the Treasury,Prompt Payment Act Guidelines.
NEW QUESTION # 87
An audit tool used to examine financial data to detect fraud is:
- A. data mining.
- B. regression analysis.
- C. compiling data.
- D. red flag detection.
Answer: A
NEW QUESTION # 88
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. State Bonds
- D. SO Bonds
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION # 89
In issuing bonds, Governments usually take following steps EXCEPT:
- A. How to finance the debt
- B. Preparation, selling and administration of repayments.
- C. Decision on the advisability of issuing debt
- D. Compensation balance
Answer: D
NEW QUESTION # 90
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