CGFM Examination 2 Study Guide 2026–2027 | Governmental Accounting, Financial Reporting and Budgeting + 2 Practice Tests

Prepare for CGFM Examination 2, Governmental Accounting, Financial Reporting and Budgeting, one of the three exams for the Certified Government Financial Manager credential from the Association of Government Accountants (AGA). This guide follows the official content outline: general knowledge (40%), state and local accounting and reporting (30%) and federal accounting and reporting (30%).

What's Inside:

• Exam overview: 115 questions in 2 hours 15 minutes, scaled scoring (500 to pass on a 200–700 scale), Pearson VUE and OnVUE delivery, retake rules and CGFM requirements
• General knowledge: government versus business, interperiod equity, reporting objectives, FASB, GASB, FASAB and IPSASB, due process and both GAAP hierarchies
• Managerial cost accounting and fees: full cost under SFFAS 4, Uniform Guidance cost principles, step-down allocation and a worked user-fee calculation
• Budgeting: the budget cycle, line-item, program, performance, zero-base and baseline budgets, capital budgeting, forecasting and budgetary controls
• State and local: component units, fund types, the ACFR, government-wide and fund statements, GASB 54 fund balance, budgetary entries and encumbrances, interfund activity, reconciliations, combinations, infrastructure, pensions and deposit and investment disclosures
• Federal: roles of FASAB, OMB, Treasury and GAO, budget terms and the budgetary equation, the federal reporting entity, budgetary and proprietary entries side by side, appropriation types, the basic statements, Fund Balance with Treasury, credit reform and the Financial Report of the U.S. Government
• 2 full-length practice tests (200 questions) weighted like the real exam, with scenario and calculation items and a detailed explanation for every answer
• Study schedules, test-taking strategies, FAQs and a final review checklist

Format:

• Digital PDF, instant download
• Printable US Letter pages

This is an independent study resource and is not affiliated with or endorsed by the Association of Government Accountants (AGA).