Use GAFRB Dumps to Obtain AGA Certification

If you're serious about obtaining the Government Financial Manager certification, practicing with AGA GAFRB dumps questions is a must. By doing so, you'll become familiar with the exam format, identify knowledge gaps, develop time management skills, boost your confidence, and increase your chances of success. So, start practicing GAFRB exam dumps today and give yourself the best chance of passing the GAFRB exam! Test free Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) GAFRB exam dumps below.

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1. The quarterly inventory record below has been provided for use in preparing the organization's financial statements.

Based upon the information provided, what method of inventory valuation is used by the organization?

FIFO

average cost

LIFO

net weight scale

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2. A basic financial statement that includes a budgetary comparison serves to

demonstrate the ability of the entity to meet its commitments.

demonstrate compliance with the legally adopted budget.

measure the service potential of physical and other resources.

disclose and document the restrictions on resources.

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3. 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.

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4. According to GAAP, all of the following should be addressed in the MD&A EXCEPT

a discussion of the basic financial statements.

an overall analysis.

computation of legal debt margins.

condensed comparative data.

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5. GASB considers interperiod (intergenerational) equity when

evaluating grant recipient awards.

performing historical trend analysis.

issuing financial reporting guidelines.

selecting alternatives in budgeting procedures.

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6. 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.

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7. An idle facility cost is an allowable expense to charge to federal grants when a

fluctuation in workload is reasonably expected.

facility will sit idle for over one year.

facility cannot be used while it is being repaired.

facility is not currently needed by the agency.

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8. 1.The Office of Personnel Management provides employee pension benefits for an agency's employees and bills the agency for a portion of the costs. The portion of costs not billed to the agency is an

imputed cost to be recognized by the Office of Personnel Management.

inferred cost to be recognized by the Office of Personnel Management.

imputed cost to be recognized by the agency.

inferred cost to be recognized by the agency.

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9. 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

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10. 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

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11. A special-purpose government is considered a primary government when it has any of the following characteristics EXCEPT that it

relies on revenue projections from another government entity.

has the ability to levy taxes.

has a board determined via general election.

provides an ongoing financial benefit to another government entity.

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12. 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.

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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.

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14. 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

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15. 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.

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16. Depreciation is measured on the statewide financial statements using the

tax basis.

cash basis.

modified accrual basis.

accrual basis.

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17. Funds collected and spent to carry out an unemployment program established by federal statute are deposited in

revolving funds.

general funds.

trust funds.

enterprise funds.

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18. 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.

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19. 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

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20. 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

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21. Which of the following fund types would be used to collect water utility user fees?

special revenue fund

capital projects fund

pension fund

enterprise fund

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22. An agency's Fund Balance with Treasury is increased by which of the following events?

receipt of a Treasury warrant

rescission of an appropriation

a recovery of prior year obligations

collection of custodial revenue

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23. A federal agency received utility bills before the end of the fiscal year. It is the agency's policy to obligate funds upon receipt of the utility bills and to pay the bills immediately upon receipt.

Which set of entries would be made to the budgetary accounts?

Debit Allotment Available for Commitment/Obligation Credit Undelivered Orders Unpaid

Debit Allotment Available for Commitment/Obligation Credit Fund Balance with Treasury

Debit Expended Appropriation Credit Allotment Available for Commitment/Obligation

Debit Unobligated Funds Credit Expended Appropriation

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24. A local government is evaluating different financing options for an upcoming capital project.

Which of the following debt instruments will typically offer the lowest interest rate?

commercial paper

general obligation bonds

revenue bonds

certificate of deposit

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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

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26. An independent school district completed construction on a new high school during the current fiscal year. The amount paid to the construction manager was $900,000 and the amount paid to the architect was $100,000. The entity depreciates buildings over 50 years, using the straight line, half-year depreciation method.

What is the amount reported on the Statement of Activities in the current fiscal year?

$9,000

$10,000

$20,000

$1,000,000

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27. 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

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28. The Department of Health and Human Services prepares a financial statement displaying costs of each major program as they relate to the department's outcomes and outputs.

The title of this financial statement is the

Statement of Net Cost.

Statement of Budgetary Resources.

Statement of Changes in Net Position.

Statement of Custodial Activity.

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29. The process in the budget where OMB communicates to agencies what it will recommend to the president is called

pass back.

allotment

rescission.

apportionment.

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30. The capitalization of interest begins when all of the following conditions are met EXCEPT

the contract is signed for purchasing the asset.

outlays for the asset have been made.

interest cost is being incurred.

activities are in progress to get the asset ready for its intended use.

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31. An agency is developing a lee for services to cover all direct operating expenditures.

Which of the following should be included in the fee calculation?

supplies, equipment depreciation, staffing

staffing, location rent, equipment depreciation

supplies, equipment depreciation, location rent

staffing, location rent, supplies

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32. 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.

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33. Congress plans to set up an activity within an agency that would:

• provide procurement services to other agencies;

• reimburse fees to the providing agency at a level that would cover the total estimated costs of the services.

The fees would be deposited in the providing agency's accounts and would remain available until expended, to carry out the purposes of the fund.

This arrangement describes a

revolving fund.

special fund.

trust fund.

general fund.

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34. The legal congressional permission for an executive branch department or agency to enter into an obligation that will result in an immediate or future outlay is referred to as

a commitment authority.

a budget authority.

a transfer authority.

an expenditure authority.

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35. Which of the following events is an example of an expenditure but not an expense?

At the end of the fiscal year, the government signs a contract to buy office furniture.

At the end of the fiscal year, the government pays its employees for work performed.

At the end of the fiscal year, the government pays for ten vehicles which will be depreciated over five years.

At the end of the fiscal year, the government receives and pays its electric bill for the previous month.

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