AGA CGFM Exam - Topic 2 Question 71 Discussion

Actual exam question for AGA's CGFM exam

Question #: 71
Topic #: 2

[All CGFM Questions]

Which of the following disbursement techniques can be used to ensure timely payments?

Awarrants

Bchecks

Cdrafts

Dbank cards

Show Suggested Answer

Suggested Answer: C

What Are Disbursement Techniques?

Disbursement techniques refer to the methods used by organizations to pay vendors or settle financial obligations. The timeliness of payments depends on the technique used.

Why Are Drafts the Best Option for Timely Payments?

A draft is a payment instrument issued by an organization's bank, drawn against its account, and typically includes specific payment timing instructions.

Drafts allow the payer to specify the timing of payments, ensuring they are made on time.

Why Other Options Are Incorrect:

A . Warrants: Warrants authorize payments but do not ensure timeliness as they require additional processing before funds are disbursed.

B . Checks: Checks rely on postal delivery and clearing times, which may delay payments.

D . Bank cards: While convenient, bank cards are typically used for immediate payments, not for ensuring future timely disbursements.

Reference and Documents:

Treasury Financial Manual: Highlights drafts as a disbursement tool for controlling the timing of payments.

GAO Cash Management Guide: Discusses the benefits of drafts in ensuring timely payments.

by Janae at Jun 13, 2025, 11:51 AM

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Arthur

7 months ago

Wait, can you really trust bank cards for payments?

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Blair

7 months ago

Drafts can be a bit slow, though.

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Sheron

7 months ago

Checks are the most common method for timely payments.

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Geoffrey

7 months ago

Totally agree with checks, they’re reliable.

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Desmond

7 months ago

I think bank cards are way faster!

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Kyoko

8 months ago

I feel like warrants are less common for timely payments, but I can't recall the specifics. I hope I remember the right details during the exam!

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Cherry

8 months ago

I'm a bit uncertain about drafts. Do they guarantee timely payments, or can they also take time to process?

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Zona

8 months ago

I remember practicing a question about disbursement techniques, and I think bank cards were mentioned as a fast way to make payments.

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Roselle

8 months ago

I think checks might be a good option for ensuring timely payments, but I'm not entirely sure if they can be delayed in the mail.

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Ruth

9 months ago

I'm a bit confused by the options here. I'll need to think through each one carefully and try to eliminate the less relevant choices before selecting my final answer.

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Ty

9 months ago

I'm confident that the answer is either warrants or checks. Those seem like the most common and reliable disbursement techniques for ensuring timely payments.

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Heidy

9 months ago

Warrants, checks, and drafts all seem like reasonable options for ensuring timely payments. I'll need to carefully consider the pros and cons of each to determine the best choice.

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Rosendo

9 months ago

Hmm, I'm not entirely sure about the differences between these disbursement techniques. I'll need to review my notes to refresh my memory on the key characteristics of each one.

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Janessa

9 months ago

This seems like a straightforward question about disbursement techniques. I'll need to think through the different options to determine which one can ensure timely payments.

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Belen

12 months ago

Hold up, are we talking about disbursement techniques or magic tricks? Because if it's the latter, I've got a few sleight-of-hand moves that could really speed up those payments.

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