What did the 1994 GMRA amend?

What did the 1994 GMRA amend?

• A. Amended the CFO Act and required a consolidated financial statement for the entire executive branch.
• B. Required the DoD to implement GAAP.
• C. Created the FIAR Plan.
• D. Abolished the CFO Act.

Answer: (A)

This question tests how the 1994 Government Management Reform Act changed federal financial reporting. The key idea is that the GMRA expanded the CFO Act by requiring consolidated financial statements for the entire executive branch. Instead of each agency producing its own separate set of financial statements, the government now presents a single, consolidated set of statements that reflect the overall financial position and activities of the executive branch, prepared in accordance with GAAP. This creates a unified, auditable view of government finances. The other options don’t fit because the GMRA wasn’t about forcing DoD to adopt GAAP, nor did it create the FIAR Plan, and it certainly didn’t abolish the CFO Act.

This question tests how the 1994 Government Management Reform Act changed federal financial reporting. The key idea is that the GMRA expanded the CFO Act by requiring consolidated financial statements for the entire executive branch. Instead of each agency producing its own separate set of financial statements, the government now presents a single, consolidated set of statements that reflect the overall financial position and activities of the executive branch, prepared in accordance with GAAP. This creates a unified, auditable view of government finances.

The other options don’t fit because the GMRA wasn’t about forcing DoD to adopt GAAP, nor did it create the FIAR Plan, and it certainly didn’t abolish the CFO Act.