AGA AGA-CGFM Online Practice Questions and Exam Preparation

AGA AGA-CGFM Online Questions & Answers

• Question 131:

  As the security of Go debt issue, state and local governments pledge their Faith and credit (their general taxing power); however revenue bonds are not backed by full faith or credit. Instead, the bond security agreement pledges a _________, known as the debt cover.

  A. Go debt capacity
  B. Go debt use capacity
  C. Rate covenant
  D. None of These
  C. Rate covenant

• Question 132:

  In 2005 the police department had four lost workday cases and 27 days were lost. The department has 53 full-time employees. The frequency and severity rates will be

  A. 7.5 and 50.9
  B. 8.0 and 51.0
  C. 7.5 and 51.9
  D. 7.9 and 50.9
  A. 7.5 and 50.9

• Question 133:

  Because of the current financial measurement focus of the Governmental Funds, they do not report:

  A. Capital Assets
  B. Long-term debt
  C. Cash equivalents
  D. Either A or B
  D. Either A or B

• Question 134:

  A conflict of interest occurs when an employee enjoys monetary gain at public expense. Possible conflict of interest problems may be all of the following EXCEPT:

  A. A city purchasing agent buys supplies from a local pharmacy that is jointly owned by a department head and his wife.
  B. A member of a city council is a silent partner in a printing company that is conducting business with the city.
  C. A Board of education contracts with a board member to serve as architect for a new building.
  D. None of these
  D. None of these

• Question 135:

  An all too familiar axiom is "either spend it or lose it." When an agency under-spends its budget, the governing board is inclined to:

  A. Check the reserves for the next time
  B. Cut the next year's budget accordingly
  C. Control the income and expenditure level
  D. Call the general public to play their proper role
  B. Cut the next year's budget accordingly

• Question 136:

  GAAP requires that the fees for enterprise fund services like water, sewer, and electricity offset costs. As a policy decision, governing board members choose among four water and sewer rate structures. Those are all EXCEPT:

  A. Declining Block and Seasonal Rate
  B. Changing Rate
  C. Ascending block
  D. None of these
  B. Changing Rate

• Question 137:

  If a government or nonprofit annually collects $ 2 million, what is the per occurrence deductibles?

  A. 2,200
  B. 2,000
  C. 2,300
  D. None of these
  B. 2,000

• Question 138:

  Program, Fundraising and administrative are the types of

  A. Assets
  B. Liabilities
  C. Expense
  D. None of these
  C. Expense

• Question 139:

  Which of the following is NOT a type of risk?

  A. Damage to property caused by carelessness, fire, natural causes, or faulty equipment
  B. Loss of property (e.g. money, tools, or furniture) caused by dishonest acts of employers or citizens
  C. Excessive employee health risks due to alcoholism, obesity, or smoking
  D. None of these
  D. None of these

• Question 140:

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

  A. Utility lines
  B. Utility plant construction
  C. Recreational facilities
  D. All of these
  D. All of these