Get Ready with GAFRB Exam Dumps (2026) [Q48-Q71]

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Get Ready with GAFRB Exam Dumps (2026)

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AGA GAFRB Exam Syllabus Topics:

Topic	Details
Topic 1	Federal Financial Accounting and Reporting: This section of the exam measures skills of government financial analysts and covers the roles of FASAB, OMB, Treasury, and GAO in federal accounting. It includes an understanding of federal budgetary terminology and the federal budgetary equation. The section differentiates between budgetary and proprietary accounting and outlines the structure and use of various federal fund types. It explains how to record key budgetary transactions like appropriations and obligations and proprietary transactions such as payroll and depreciation.
Topic 2	State and Local Financial Accounting and Reporting: This section of the exam measures skills of public sector accountants and focuses on applying GASB standards to define reporting entities and component units. It explores the structure and purpose of various fund types and the basis of accounting for each. Candidates must understand the format and content of the Annual Comprehensive Financial Report and the purpose of popular reports for public transparency.
Topic 3	Governmental Financial Accounting, Reporting and Budgeting: General Knowledge:This section of the exam measures skills of government financial analysts and covers the unique aspects of governmental accounting that distinguish it from private sector practices, such as service over profit and the critical role of the budget. It emphasizes the objectives of financial reporting in the public sector, the role of standard-setting bodies like GASB, FASB, FASAB, and IPSASB, and the due process for setting accounting standards. It also includes knowledge of interperiod equity, budgetary compliance, sustainability, and the characteristics of quality financial information.

NO.48 Which federal agency activities would most likely use a trust fund to account for funds received and paid?

general government programs receiving annual appropriations

provisions of benefits, goods or services financed by specific revenue sources

business-type operations financed by exchange revenues

grant programs distributing funds awarded in prior years

NO.49 A legally separate organization for which the elected officials of the primary government are financially accountable describes a

fiscally dependent organization.

component unit.

joint venture entity.

jointly governed organization.

NO.50 What is the maximum period of subscription-based information technology agreement (SBITA), including any options to extend, that is classified as short term?

6 months

12 months

18 months

24 months

NO.51 A federal agency submits its budget request to which of the following?

the U.S. Department of the Treasury

OMB

GAO

Congress

NO.52 Accounts that are closed at year-end include

taxes receivable.

tax revenues.

supplies inventory.

unassigned fund balance.

NO.53 A municipality would establish an internal service fund to capture the activities of a data processing center, in order to account for

financial resources to be used for acquisition of facilities.

services rendered to the general public on a fee basis.

proceeds of revenue sources restricted to expenditure for specified purposes.

financing of services provided to other governmental units on a cost reimbursement basis.

NO.54 The Prompt Payment Act requires federal agencies to

pay invoices when received.

take discounts when economically justified.

pay invoices no later than sixty days from receiving the invoice.

pay invoices by the invoice due date.

NO.55 An agency offers service for a fee; bad debts have historically averaged 5% of each year’s fee revenue. During the past fiscal year, $1.1 million in fee revenue was recorded and $1 million in fees was collected. What is the bad debt expense recorded for the past fiscal year?

$ 5.000

$ 50.000

$ 55.000

$100,000

NO.56 The objectives of federal financial reporting include all of the following EXCEPT

systems and control.

budgetary integrity.

mission readiness.

stewardship.

NO.57 What role do the U.S. Department of the Treasury, GAO and OMB have in the standard-setting activities of FASAB?

They are all non-voting advisory board members of FASAB.

They are all members with authority to veto any standard approved by FASAB.

They are all members whose agencies may be exempt from FASAB standards.

They are all sponsors and voting members of FASAB.

NO.58 What is the term used to describe categories that present obligations by the items or services purchased by the federal government?

treasury fund accounts

object classes

programs

general ledger accounts

NO.59 Federal agencies accumulate and report costs in order to perform all of the following EXCEPT to

comply with the GPRA.

comply with the CFO Act.

achieve an unmodified audit opinion.

comply with SFFAS #4.

NO.60 Wasteful year-end spending may be discouraged by including which of the following in the appropriation law?

impoundment controls

annual appropriations

delimiting contracting procedures

multi-year appropriation authority

NO.61 Using the cost recovery method of recognizing revenue, premiums are recognized as revenue

once the ultimate premium can be reasonably estimated.

throughout the duration of the policy when claim costs are incurred.

when received.

when the policy takes effect.

NO.62 GASB establishes standards through a

unanimous vote of the board members, after discussing the results of written and oral comments offered by interested parties on an exposure draft submitted by GASB staff.

vote of the majority of board members, after discussing the results of a preliminary views document submitted by GASB staff.

unanimous vote of the board members, confirming that the standards would improve the usefulness of financial reports.

vote of the majority of board members, after discussing the written and oral comments offered by interested parties on an exposure draft of a statement of proposed standards.

NO.63 Which of the following situations may cause contingent liabilities?

loss on the sale of an asset

building with asbestos

impairment of an asset

unrealized loss

NO.64 GASB considers interperiod (intergenerational) equity when

evaluating grant recipient awards.

performing historical trend analysis.

issuing financial reporting guidelines.

selecting alternatives in budgeting procedures.

NO.65 Which account is used to temporarily hold general, special or trust fund federal government collections or disbursements pending clearance to the applicable receipt or expenditure accounts?

Transfer Allocation Account

Deposit Fund Account

Suspense Account

Clearing Account

NO.66 The major difference in applying the accrual concept in governmental fund accounting, as opposed to private- sector accounting, is that revenues are

recognized in the accounting period in which they are received.

recorded when collectability occurs or can be reasonably estimated.

recognized when they become measurable and available.

recognized when an encumbrance order is prepared.

NO.67 What is the entry when rent of $500 is paid?

debit cash $500, credit payables $500

debit cash $500, credit expense $500

debit expense S500, credit payables $500

debit expense $500, credit cash $500

NO.68 State Medicaid caseloads have been exceeding projections for the past two months. Review of the data indicates the increase is likely to continue, leading to the need for significant supplemental appropriations before the end of the fiscal year. Based upon this information, what is the first action the state director of Medicaid should take?

Inform the governor of the situation and options for addressing the shortfall.

Inform the legislative counsel bureau about the potential over-expenditure.

Impose a hiring freeze and hold all spending approvals for contracts and purchases on the affected departments.

Confer with the chairmen or staff directors of the House and Senate appropriations committees concerning the need to call a legislative special session.

NO.69 A federal AFR includes all of the following EXCEPT

the RSI.

an audit opinion.

a standard general ledger trial balance.

the MD&A.

NO.70 Governmental funds reported $80 million current expenditures and $2 million capital outlays. The reconciliation of the Statement of Revenues. Expenditures, and Change in Fund Balance to the Statement of Activities starts with the total net change in fund balances in the governmental fund and

$80 million in current expenditures is added.

$80 million in current expenditures is subtracted.

$2 million in capital outlays is added.

$S2 million in capital outlays is subtracted.

NO.71 Which type of cost is generally allowed for a grant under the OMB Uniform Guidance?

interest payments

general government expenses

materials and supplies

lobbying expenses

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Get Ready with GAFRB Exam Dumps (2026) [Q48-Q71]