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AGA Examination 3: Governmental Financial Management and Control (GFMC) Sample Questions:

1. Use of a lockbox eliminates

A) the writing of checks against insufficient funds.
B) mail and check-clearing time.
C) delays in the availability of funds after transaction initiation.
D) internal office processing delays occurring prior to making deposits.

2. Pay.gov is an example of

A) a concentration system.
B) an electronic lockbox.
C) a zero-balance account.
D) a data warehouse system.

3. An agency uses pavement rating scores as a key indicator for a street maintenance program. If the legislature provided the agency with an additional $5 millionjthe new resources should be allocated based upon

A) lane miles with unmet needs.
B) historical budgeted amounts.
C) lane miles rated as acceptable by the citizens.
D) the number of intersections.

4. When reviewing a report on internal control from a shared service provider that noted a weakness, the agency should

A) ask the service provider to correct the weakness.
B) dismiss the weakness.
C) consider the existence of compensating or mitigating controls.
D) refer the weakness to the Contracting Officer.

5. If a CGFM wants to utilize data on population growth, housing and employment to estimate sales tax revenue, the CGFM should use

A) a regression analysis.
B) a payback analysis.
C) a cash flow analysis.
D) flow charting.

Solutions: