What did the 1990 Chief Financial Officers (CFO) Act require?

• A. Required the appointment of a CFO in 24 major Federal agencies and financial reports for business operations.
• B. Created a single consolidated financial statement for the entire executive branch.
• C. Mandated the FIAR plan for audit readiness.
• D. Defined assets and liabilities for the first time.

Answer: (A)

The main idea is that the act created formal financial leadership and stronger, standardized reporting across key parts of the government. It required appointing a Chief Financial Officer in 24 major federal agencies and mandated annual financial statements for the agencies’ operating programs. This move was aimed at improving accountability and the reliability of financial information for decision-makers and Congress, laying a foundation for better financial management and oversight.

It didn’t establish a single consolidated financial statement for the entire executive branch, and it isn’t about mandating an FIAR plan or defining assets and liabilities for the first time—those came from other reforms and later initiatives.