100% Free GAFRB Files For passing the exam Quickly UPDATED Apr 09, 2026 [Q12-Q29]

Rate this post

100% Free GAFRB Files For passing the exam Quickly UPDATED Apr 09, 2026

GAFRB Dumps Questions Study Exam Guide

AGA GAFRB Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	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.
Topic 3	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.

NEW QUESTION 12
An example of a non-exchange revenue is

sales taxes.

bond proceeds.

licensing fees.

investment earnings.

NEW QUESTION 13
An agency operates out of a building that is on the Register of Historic Places; the building is classified as a multi-use federal asset. If the agency recently paid to renovate the office space in the building, the cost for the renovation should be treated as a

heritage asset.

mission property.

stewardship investment.

general property, plant and equipment expense.

NEW QUESTION 14
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

NEW QUESTION 15
A county is projecting a $7 million budget deficit in the upcoming fiscal year, so the county board, who acts as the highest level of authority for the county, sets aside $7 million in fund balance to close this gap. How should the $7 million be classified on the financial statement?

Restricted Fund Balance

Assigned Fund Balance

Nonspendable Fund Balance

Committed Fund Balance

NEW QUESTION 16
The budget office for the county has been tasked with identifying the full costs of its vehicle fleet program.
Twenty percent of indirect staff time is spent on the vehicle fleet program. Budget staff has gathered the following data from all agencies that support the fleet program:
Fleet personnel costs $ 80,000
Annual fuel costs $ 10,000
Annual fleet depreciation $ 50,000
Procurement personnel costs $200,000
Accounting personnel costs $100,000
Fleet garage rent $ 40,000
Based on this information, the budget office identifies the full cost of this fleet program as

$190.000.

$240.000.

$430.000.

$480.000.

NEW QUESTION 17
GAAP requires that the ACFR be accompanied by separate financial statements documenting

statistical data on the population.

fiduciary and proprietary funds.

program goals and objectives.

annual appropriations.

NEW QUESTION 18
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.

NEW QUESTION 19
A city pays a bond payable as well as interest. The journal entry to record this in the debt service fund would be to credit cash and debit

expenditures – principal and expenditures – interest.

bonds payable and interest expense.

bonds payable and expenditures – interest.

principal expense and interest expense.

NEW QUESTION 20
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

NEW QUESTION 21
Purchase orders are issued in the amount of $427,000. The general ledger entry to record the encumbrance should be

Debit Fund Balance $427,000 Credit Encumbrances $427,000

Debit Appropriations $427,000 Credit Encumbrances $427,000

Debit Encumbrances $427,000 Credit Expenditures $427,000

Debit Encumbrances $427,000 Credit Budgetary Fund Balance $427,000

NEW QUESTION 22
For state and local governments, a fund that is legally restricted to the use of earnings with the principal protected is

an enterprise fund.

a permanent fund.

an internal service fund.

a general fund.

NEW QUESTION 23
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.

NEW QUESTION 24
The Department of the Interior has the following costs associated with the development of a new visitor tracking system.
Research cost determining if system should be internally or externally developed $100,000 Software configuration and system development $750,000 Cost of testing the new system for fiscal usage $225,000 Converting data from old tracking system to new tracking system $500,000 How much should be capitalized as the cost of the asset?

$750,000

$975,000

$1,475,000

$1,575,000

NEW QUESTION 25
The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations as the standard-setting body for federal accounting and reporting standards?

OMB

FASB

GAO

FASAB

NEW QUESTION 26
A state had problems with its cash reconciliation resulting in a difference between the total cash per books versus cash balance with banks. The possible loss could only be estimated within a range of $100 million to
$300 million with no amount within the range considered a better estimate than any other. The state should recognize a minimum liability of

$100 million and disclose in the notes the exposure to an additional $200 million loss.

$200 million and disclose in the notes the exposure to an additional $100 million loss.

$300 million with no additional disclosure required.

an amount to be determined by external auditors.

NEW QUESTION 27
State and local budgets serve all of the following purposes EXCEPT to

set public policy.

act as legislative control on taxing and spending.

determine debt policy.

serve as a financial planning tool.

NEW QUESTION 28
Which of the following federal collections are typically accounted for in a deposit fund?

general tax receipts funding government operations overall (e.g., personal income taxes)

taxes dedicated to a specific purpose (e.g., gasoline taxes funding highway projects)

funds held temporarily until ownership is determined (e.g., earnest money paid by bidders)

exchange revenues collected to finance a continuing cycle of business-type operations (e.g., revenue paid to service centers)

NEW QUESTION 29
A specific operation of the government is funded by 60% from the general fund, 40% from specific revenues.
This should be reported in which fund?

general fund

special revenue fund

capital projects fund

internal service fund