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AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Sample Questions:

1. Which of the following events requires both a proprietary and a budgetary accounting entry?

A) A funds certifying official commits resources to order printers.
B) A budget officer allots resources to a program office to buy printers.
C) A contracting officer signs a contract to buy printers.
D) A contracting officer's representative receives delivery of previously ordered printers.

2. Which federal agency activities would most likely use a trust fund to account for funds received and paid?

A) provisions of benefits, goods or services financed by specific revenue sources
B) business-type operations financed by exchange revenues
C) grant programs distributing funds awarded in prior years
D) general government programs receiving annual appropriations

3. When a new combined government replaces the separate governments of a city and a county, this is an example of

A) a government merger.
B) a government acquisition.
C) intergovernmental operations.
D) a transfer of operations.

4. At the beginning of the fiscal year a school district held the following capital assets:
What is the depreciation expense for the current year?

A) $207.500
B) $233.333
C) $200.000
D) $240.833

5. State and local budgets serve all of the following purposes EXCEPT to

A) determine debt policy.
B) act as legislative control on taxing and spending.
C) set public policy.
D) serve as a financial planning tool.

Solutions: