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

The concept of sustainability encompasses a broader and longer-term perspective on financial well-being compared to the other choices. It deals with the ability of an organization or system to maintain its functions over time, considering not only financial aspects but also social, environmental, and economic factors. Sustainability emphasizes the importance of using resources wisely and planning for long-term success, which aligns with the idea of preserving both financial and non-financial assets for future generations.

In contrast, solvency relates specifically to the ability of an organization to meet its long-term obligations, focusing on financial stability rather than the broader implications of sustainability. Liquidity concentrates on the ease with which an entity can meet its short-term obligations, reflecting immediate financial health rather than long-term viability. Profitability measures the ability to generate income over a period, which is important but does not encompass the broader implications of financial, social, and environmental responsibilities that sustainability includes. Thus, sustainability captures a holistic view of financial well-being over a longer timeframe, making it the most relevant choice in this context.