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AGA Examination 3: Governmental Financial Management and Control (GFMC) Sample Questions (Q72-Q77):

NEW QUESTION # 72
How may a city parks and recreation director meaningfully assess the performance of the department's grounds maintenance division?

A. analyze grounds maintenance staffing levels
B. compare cost per acre maintained to cost per acre maintained in another jurisdiction
C. evaluate funds spent on grounds maintenance
D. use a single measure of citizen satisfaction with parks and recreation

Answer: B

Explanation:
Why Is This the Best Measure for Performance?
* Comparing thecost per acre maintainedto that of another jurisdiction provides a meaningful benchmark for performance evaluation. It allows the director to assess how efficiently the department is operating relative to similar organizations.
* This comparison ensures that the department is managing resources effectively and identifies potential areas for improvement.
Why Other Options Are Incorrect:
* A. Use a single measure of citizen satisfaction:While citizen satisfaction is important, it is subjective and does not provide insight into operational efficiency.
* B. Evaluate funds spent on grounds maintenance:Total spending does not measure efficiency or productivity; it merely reflects the amount allocated.
* C. Analyze staffing levels:Staffing levels do not directly measure performance; they are only one factor in determining efficiency.
References and Documents:
* Governmental Performance Reporting (AGA):Recommends using comparative benchmarks for evaluating efficiency in service delivery.
* Performance Management Framework by GAO:Highlights cost-effectiveness metrics such as cost per acre maintained.

NEW QUESTION # 73
An evaluation of anggntity's single year financial statements would use which of the following analyses?

A. trend
B. vertical
C. comparative
D. horizontal

Answer: B

Explanation:
What Is Vertical Analysis?
* Vertical Analysisevaluates a single year's financial statements by expressing each line item as a percentage of a base amount. For example, in an income statement, each expense may be presented as a percentage of total revenue.
* This approach helps users understand the relative size of each financial statement item within the context of the total.
Why Is Vertical Analysis Used for a Single Year?
* Vertical analysis focuses solely on relationships within a single set of financial statements, making it the appropriate choice for single-year evaluations.
Why Other Options Are Incorrect:
* A. Comparative:Involves comparing financial data across entities or periods, not within a single year.
* B. Horizontal:Focuses on changes in financial data over time (year-to-year comparisons).
* C. Trend:Examines patterns over multiple periods to identify long-term trends, not a single year.
References and Documents:
* GAO Financial Audit Manual:Recommends vertical analysis for single-year financial statement evaluations.
* AICPA Financial Statement Analysis Guide:Provides detailed examples of vertical analysis techniques.

NEW QUESTION # 74
Cloud computing includes which of the following services?

A. satellite-to-satellite
B. mainframe computing
C. hosted
D. gateway transmission

Answer: C

Explanation:
* Definition of Cloud Computing:
* Cloud computing refers to the delivery of computing services (e.g., servers, storage, databases, networking, software) over the internet.
* A common feature of cloud computing is the "hosted" service model, where applications, storage, or infrastructure are hosted and managed by a cloud service provider.
* Explanation of Answer Choices:
* A. Satellite-to-satellite: This involves communication between satellites, unrelated to cloud computing.
* B. Hosted: Correct. Hosted services are a fundamental aspect of cloud computing, where applications or data are stored and accessed on remote servers.
* C. Gateway transmission: Refers to communication gateways, unrelated to cloud computing services.
* D. Mainframe computing: Mainframes are large on-premises computers, not part of the cloud model.
:
National Institute of Standards and Technology (NIST),Cloud Computing Reference Architecture.
Federal Risk and Authorization Management Program (FedRAMP),Cloud Service Providers Guidance.

NEW QUESTION # 75
An analyst has identified several variables that may be impacting state lottery ticket sales, including investments in advertising, potential pay-out amounts and the size of lottery cards. Which of the following techniques would help determine the extent to which each variable is impacting sales?

A. regression analysis
B. cost-benefit analysis
C. content analysis
D. narrative analysis

Answer: A

Explanation:
* Regression Analysis:
* Regression analysis is a statistical technique used to examine the relationships between a dependent variable (e.g., lottery ticket sales) and one or more independent variables (e.g., advertising, potential payouts, size of lottery cards).
* This method helps quantify the extent to which each variable impacts sales.
* Explanation of Answer Choices:
* A. Content analysis: Incorrect. This method is used to analyze qualitative data (e.g., text or media) rather than numerical relationships.
* B. Cost-benefit analysis: Incorrect. This technique evaluates the costs and benefits of a decision but does not identify the relationships between variables.
* C. Regression analysis: Correct. This technique determines the impact of multiple variables on a single outcome.
* D. Narrative analysis: Incorrect. This is used to analyze stories or qualitative information, not numerical data.
:
Association of Government Accountants (AGA),Data Analytics and Predictive Techniques in Government.
U).S. Census Bureau,Statistical Techniques for Economic Analysis.

NEW QUESTION # 76
Planning to support ongoing financial operations in the event of a natural disaster is based on the assumption that

A. a fully redundant infrastructure will be available to staff at an alternate location.
B. there may be no warning of the potential emergency.
C. leadership and staff will reconvene at an alternate location.
D. government agencies will need to operate as standalone organizations.

Answer: B

Explanation:
* Assumptions in Disaster Planning:
* Financial continuity planning for natural disasters must account for scenarios where the event occurs suddenly and without warning.
* This assumption ensures that governments are prepared to quickly resume critical financial operations even under challenging and unpredictable circumstances.
* Explanation of Answer Choices:
* A. Leadership and staff will reconvene at an alternate location: While this is part of disaster planning, it is not the primary assumption.
* B. A fully redundant infrastructure will be available to staff at an alternate location: This may not always be realistic or feasible.
* C. There may be no warning of the potential emergency: Correct. Disaster planning assumes that emergencies can occur without prior notice.
* D. Government agencies will need to operate as standalone organizations: This is not a standard assumption in disaster planning.
:
FEMA,Continuity Guidance Circular.
GAO,Disaster Resilience and Continuity Planning.

NEW QUESTION # 77
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