Question 1

Performance measures that report the results of providing goods or services are known as

Options :

A : activity measures.

B : outcome measures.

C : output measures.

D : workload measures.

Answer: C

Question 2

Which of the following is an example of an internal control weakness?

Options :

A : The contract department staff awards contracts and maintains a database for vendor information.

B : Management policy allows project managers to oversee controls of companies in which they have a material interest.

C : The budget department staff is responsible for preparing the budget and for reporting on budget cost variances.

D : The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts.

Answer: B

Question 3

Management shoulg consider the cost of internal controls in relationship to

Options :

A : the available budget.

B : inherent risks.

C : benefits provided.

D : risk of collusion.

Answer: C

Question 4

If a state treasurer wants to evaluate a variety of alternative long-term investments, which financial analysis should be used?

Options :

A : net present value analysis

B : regression analysis

C : horizontal analysis

D : ratio analysis

Answer: A

Question 5

One of the minimum components of a government financial system is

Options :

A : automated transaction processing.

B : debt-reduction analysis.

C : performance management reporting.

D : general ledger account definition.

Answer: D