Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

In budgeting, the term that refers to what money is spent on, such as salaries or equipment, is known as an "object." In this context, an object is a classification of the expenditure that identifies the purpose of the spending. It helps to categorize expenses in a detailed manner, allowing for better tracking and analysis of where funds are allocated within an organization.

This concept is essential for effective financial management, as it enables managers to monitor spending patterns, make informed decisions regarding budgeting and resource allocation, and ensure that financial resources are used efficiently and effectively. Objects typically include specific expenditure types, such as personnel costs (salaries and benefits), operational expenses (supplies and equipment), and capital expenditures (long-term investments).

While the other terms might seem relevant in a broader budgeting context, they do not precisely match the definition provided in the question. A "funding source" refers to where the funds originate, "expense category" is a more general term that might include several objects, and a "line item" typically denotes a specific entry on a budget document, which could include an object but is not solely defined by it.