Free GAFRB Questions for AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) GAFRB Exam as PDF & Practice Test Engine

Exam Code/Number: GAFRB
Exam Name/Title: Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB)
Certification Provider: AGA
Corresponding Certification: Government Financial Manager

Exam Questions: 117
Updated On: Jul 10, 2026

Question #1

What role do the U.S. Department of the Treasury, GAO and OMB have in the standard-setting activities of FASAB?

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

B. They are all sponsors and voting members of FASAB.

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

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

Discussion 0

Correct Answer: B Vote an answer

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Question #2

A city issues S100,000 of 10-year general obligation bonds on April 1, 2024. Debt service of $10,000 must be paid each year on March 31, with 5% interest paid on the unpaid balance. Based upon this information, the interest expense reported on the government-wide statement for fiscal year ending March 31, 2025, is

A. $ 3,750.

B. $15.000.

C. $5,000.

D. $ 4,500.

Discussion 0

Correct Answer: C Vote an answer

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Question #3

The federal budget baseline forecast reflects the estimated

A. effects of enacting Congressional appropriations bills on federal receipts and spending.

B. receipts, outlays, and deficit or surplus under the President's Budget.

C. effects of current law on recipients of federal benefits.

D. receipts, outlays, and deficit or surplus that would result from continuing current law or policies.

Discussion 0

Correct Answer: D Vote an answer

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Question #4

Government, public, private and not-for-profit entities all share which common goal of financial reporting?

A. provide users with decision support

B. inform users about the ability of the entity to generate revenue

C. provide users with the current status of the entity

D. demonstrate the nature of cash receipts and disbursements

Discussion 0

Correct Answer: A Vote an answer

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Question #5

Entity receivables are described as amounts that

A. a federal entity claims from other federal or non-federal entities that the federal entity is authorized to spend.

B. the entity collects on behalf of other federal entities and deposits directly with the U.S. Department of the Treasury.

C. the entity anticipates receiving via appropriate warrant from the U.S. Department of the Treasury.

D. the entity collects on behalf of the U.S. government or other entities that the entity is not authorized to spend.

Discussion 0

Correct Answer: A Vote an answer

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Question #6

Which one of the following statements is true with regard to external reporting of major funds for state and local governments?

A. Special revenue funds that have expenditures in excess of 5% of total governmental expenditures are required to be reported as major funds.

B. Management can elect to present any governmental or enterprise fund as a major fund.

C. The general fund is presented as major only if it meets the major fund criteria.

D. Internal service funds that have assets and deferred outflows of resources in excess of 10% of total proprietary assets and deferred outflows of resources are required to be reported as major funds.

Discussion 0

Correct Answer: B Vote an answer

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Free GAFRB Questions for AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) GAFRB Exam as PDF & Practice Test Engine

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