How to Pass the CGFM Exam Two

In order to pass Exam Two in the three-part Certified Governmental Managers Exam series you must possess specific knowledge in the following areas: Governmental Accounting, Governmental Financial Reporting and Governmental Budgeting. This 100-question exam must be completed in 2 hours and 15 minutes.

Instructions

Difficulty: Challenging

General Knowledge

1. Get the details for CGFM Exam Two. There are two sections in this test: a General Knowledge section that accounts for 60 percent of your score and a Detailed Knowledge section that accounts for 40 percent of your score.
2. Know the Influences and Objectives portion of the General Knowledge section. Study how the government environment differs from the public sector and learn about budgetary reporting, financial reporting and interperiod equity.
3. Learn about the Standards Setting portion of the General Knowledge section. Learn about the roles of the GASB, FASB and GAAP in federal, state and local governments.
4. Understand the General Principles of Governmental Accounting. This includes Basis of accounting concepts, fund accounting concepts and accounting for special and/or unusual transactions.
5. Comprehend Financial Reporting. The basic concepts in this section are a general overview of financial reporting, the definition and role of a reporting entity, and what statements and information must be included in financial reports.
6. Study Cost Accounting and Performance Reporting. This section includes the basic principles and purposes behind Cost Accounting and Performance Reporting such as what data is to be included in reports and inputs, outputs and outcomes in performance reporting.
7. Grasp all the concepts of Budgeting. This includes long and short-term forecasting and the entire budgeting process from start to finish to follow-up.

Detailed Knowledge

8. Study State and Local Financial Accounting and Reporting. Be sure to study Fund and Budgetary accounting as well as fund classifications and financial reporting.
9. Grasp all the concepts of Federal Accounting and Financial Reporting. This includes all the components of Budgetary and Proprietary accounting, how transactions are recorded, following OMB guidelines in reporting and the measurement and recognition of different fund classes.
10. Learn about Stewardship Reporting. This includes reporting for all property, plant and equipment.

Tips & Warnings

• The Association of Government Accountants offers study guides for the CGFM Exam Two.
• Get a full eight hours of sleep. Take the test with a well-rested body and brain.
• Eat before you go. Food and beverages are not allowed in the testing area.
• Don't procrastinate. You have three years from the time you apply to the time you actually take the test.
• If you fail the exam you have to pay the same price to take it again. At more than $100 a test, it pays to study.