Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The FASAB Hierarchy of Accounting Standards identifies Category A as including the Statements of Federal Financial Accounting Standards (SFFAS) and Interpretations. These standards form the foundational accounting principles governing federal financial reporting and ensure consistency and transparency in financial statements. SFFAS provides authoritative guidance for federal entities in preparing and presenting their financial statements, thereby enabling better decision-making and accountability in the management of federal resources.

The inclusion of these standards in Category A signifies their primary authority over other types of guidance, which may address more specific issues or interpretations but do not carry the same level of foundational importance. Understanding this hierarchy helps entities navigate the complex landscape of federal accounting standards and ensures adherence to the most authoritative regulations in federal financial management.

Other options, although they may provide valuable information or guidance, fall under different categories or are meant for more specific applications or interpretations, which do not carry the same foundational weight as the SFFAS and their interpretations.