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

The Chief Financial Officers (CFO) Act of 1990 was primarily focused on improving the financial management of the federal government by establishing a framework for sound financial practices. A critical aspect of this was the requirement for federal agencies to prepare and maintain a standardized chart of accounts. This standardization allows for better consistency and comparability across financial reports, making it easier for agencies to track expenditures and revenues effectively.

The establishment of a standard chart of accounts enhances the efficiency and accuracy of financial reporting, facilitating better oversight and accountability within federal financial management. Ultimately, this helps in ensuring that government funds are managed and reported transparently, which is a crucial goal of the CFO Act.

The other options do not reflect the main outcomes of the CFO Act. While state budget control measures, revenue sources, and audit standards are related to financial management, they are not directly established by this legislation. The CFO Act specifically aimed at improving financial management within federal agencies, signifying its focused contribution to enhancing governance rather than altering audit standards or budgetary controls.