GFOA CPFO Quiz 1 Topic 11 Questions 1-5

Question: 1

____________ extends the limits of general liability, automotive liability. And employers' liability, usually in $1 million blocks.

AProfessional Liability

BExcessive Liability

CPolice Professional Liability

DPublic Officials and Employment Practices Liability

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Question: 2

''A cash received as a loan is shown as revenue not as a liability, on the balance sheet. To correct for such cases, most cash accounting systems recognize not only cash but also other assets and liabilities arising through prior cash transactions. This adjustment, though, does not alter the fact that outstanding obligations have been incurred but not accounted for, thus overstating the available balance.'' This is an example of possible mishandlings after the selection of ________________.

ACash basis of accounting

BAccrual basis of accounting

CModified basis of accounting

DNone of these

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Question: 3

''Every employee should have a personnel file that includes authorization for hiring, salary history hours authorized to work, federal and state withholding forms, hospital and retirement information and support for any other payout deductions.'' There are the procedures of:

ACash Disbursements in payroll department

BSeparation of duties in a small of government

CFederal government payroll system

DBoth A and B

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Question: 4

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:

ACheck the reserves for the next time

BCut the next year's budget accordingly

CControl the income and expenditure level

DCall the general public to play their proper role

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Question: 5

''Don't risk a lot for a little.'' This principle should be followed during:

ACharging losses

BUsing insurance deductibles

CSmall and infrequent losses

DAssumption of risk

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GFOA CPFO Quiz:1 Topic:11 Questions:1-5