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

Question: 1 / 875

What is defined as collections resulting from the government's ability to impose taxes and fees?

Offsetting collections

Receipts

The correct choice highlights that collections resulting from the government's ability to impose taxes and fees are referred to as receipts. This term encompasses all financial inflows to the government that arise from taxation, fees, and other compulsory payments. Receipts are crucial for understanding government revenue sources and are essential for budgeting and fiscal planning.

In contrast, offsetting collections refer to collections that reduce outlays rather than contribute to overall revenue; fiscal revenue is a broader term that could encompass various forms of revenue but is not specifically defined as collections from taxes and fees; and net income typically pertains to profit after expenses for a business entity, which doesn't apply in the context of government collections.

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Fiscal revenue

Net income

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