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AGA Certified Government Financial Manager (CGFM) Sample Questions (Q109-Q114):
NEW QUESTION # 109
QPL is a specification based on:
- A. Manufacturers' names
- B. Both of these
- C. Brand names or model numbers that have been examined and approved for purchase by the government or nonprofit.
- D. None of these
Answer: B
NEW QUESTION # 110
In the collection of cash receipts, for a fee, organizations can engage a bank to provide a lock-box service. Lockboxes may be:
- A. Retail
- B. Wholesale
- C. Temporary
- D. Only A & B
Answer: D
NEW QUESTION # 111
Which of the following danger sign/s help to detect Auditors' fraud?
- A. Pronounced criticism of others, endearing to divert suspicion
- B. Replying to Questions with unreasonable explanations
- C. Borrowing small amounts from fellow employees
- D. All of these
Answer: D
NEW QUESTION # 112
Which of the following disbursement techniques can be used to ensure timely payments?
- A. warrants
- B. checks
- C. bank cards
- D. drafts
Answer: D
Explanation:
What Are Disbursement Techniques?
* Disbursement techniques refer to the methods used by organizations to pay vendors or settle financial obligations. The timeliness of payments depends on the technique used.
Why Are Drafts the Best Option for Timely Payments?
* Adraftis a payment instrument issued by an organization's bank, drawn against its account, and typically includes specific payment timing instructions.
* Drafts allow the payer to specify the timing of payments, ensuring they are made on time.
Why Other Options Are Incorrect:
* A. Warrants:Warrants authorize payments but do not ensure timeliness as they require additional processing before funds are disbursed.
* B. Checks:Checks rely on postal delivery and clearing times, which may delay payments.
* D. Bank cards:While convenient, bank cards are typically used for immediate payments, not for ensuring future timely disbursements.
References and Documents:
* Treasury Financial Manual:Highlights drafts as a disbursement tool for controlling the timing of payments.
* GAO Cash Management Guide:Discusses the benefits of drafts in ensuring timely payments.
NEW QUESTION # 113
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 member of a city council is a silent partner in a printing company that is conducting business with the city.
- B. A city purchasing agent buys supplies from a local pharmacy that is jointly owned by a department head and his wife.
- C. A Board of education contracts with a board member to serve as architect for a new building.
- D. None of these
Answer: D
NEW QUESTION # 114
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