Valid GAFRB Exam Review & Valid GAFRB Exam Labs
DOWNLOAD the newest VCE4Plus GAFRB PDF dumps from Cloud Storage for free: https://drive.google.com/open?id=12ntwQ42j-siqYJe8qx8dS6LCWpuGJPrf
Passing an exam isn’t an easy thing for some candidates, if youchoose the GAFRB training materials of us, we will make the exam easier for you. GAFRB training materials include knowledge points, you can remember them through practicing. GAFRB questions and answers will list the right answer for you, what you need to do is to practice them. In addition, there are experienced specialists checking the GAFRB Exam Dumps, they will ensure the timely update for the latest version.
AGA GAFRB Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
Valid GAFRB Exam Labs, Valid GAFRB Practice Materials
The Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) (GAFRB) certification exam is one of the hottest and most industrial-recognized credentials that has been inspiring beginners and experienced professionals since its beginning. With the GAFRB certification exam successful candidates can gain a range of benefits which include career advancement, higher earning potential, industrial recognition of skills and job security, and more career personal and professional growth.
AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Sample Questions (Q16-Q21):
NEW QUESTION # 16
State and local budgets serve all of the following purposes EXCEPT to
Answer: C
Explanation:
State and local government budgets primarily serve to:
Set public policy priorities
Provide legislative control over taxing and spending
Serve as a financial planning tool
Debt policy is typically established outside the annual budget process and guided by a separate debt management policy that sets borrowing limits, credit rating objectives, and debt service goals.
Relevant References:
GFOA Best Practices - Role of the Budget
NASBO Budgeting Handbook
GASB Concept Statements - Financial Reporting Objectives
C). determine debt policy
NEW QUESTION # 17
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?
Answer: D
Explanation:
A special revenue fund is used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes (other than debt service or capital projects). In this case, 40% of the operation is funded by specific revenues, which triggers the use of a special revenue fund, provided those revenues are legally restricted or committed to the operation.
Even though 60% of the funding comes from the general fund, the existence of a dedicated revenue stream (40%) for a specific purpose qualifies it for reporting in a special revenue fund.
Relevant References:
GASB Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions GASB Codification Section 1300 - Fund Types GFOA - Fund Structure Guidance B). special revenue fund
########################
NEW QUESTION # 18
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
Answer: D
Explanation:
In the governmental fund (such as the debt service fund), modified accrual accounting is used. Under this basis:
Payment of principal and interest is recorded as expenditures, not reductions of liabilities or interest expense.
No long-term liabilities (e.g., bonds payable) are recorded in governmental funds.
So, the correct journal entry is:
Debit: Expenditures - Principal
Debit: Expenditures - Interest
Credit: Cash
Relevant References:
GASB Codification Section 1300 - Fund Accounting and Modified Accrual Basis GASB Statement No. 34 - Fund-Level Reporting GFOA Accounting and Reporting for Debt Service Funds A). expenditures - principal and expenditures - interest
NEW QUESTION # 19
Using the cost recovery method of recognizing revenue, premiums are recognized as revenue
Answer: A
Explanation:
Under the cost recovery method, revenue is recognized only as costs are recovered. In the context of insurance or risk-financing activities (such as self-insurance), GASB and FASAB require that premium revenues be recognized over the term of the policy, in proportion to the recognition of related costs (e.g., claims incurred).
This aligns revenue with expenses and ensures no profit is recognized before related obligations are met.
Relevant References:
FASAB SFFAS No. 7 - Revenue and Other Financing Sources
GASB Statement No. 10 - Accounting for Risk Financing and Related Insurance Issues GFOA Risk Management and Insurance Practices B). throughout the duration of the policy when claim costs are incurred
NEW QUESTION # 20
State and local governments account for budgeted and actual expenditures to ensure that
Answer: D
Explanation:
State and local governments adopt legally binding budgets and are required to monitor compliance with those budgets. Budget-to-actual comparisons help ensure that public funds are spent only as authorized by the legislative body. This supports the core accountability principle of public sector financial reporting.
While budgets can also support planning and cash flow, the primary purpose of tracking budgeted vs. actual expenditures is legal compliance.
Relevant References:
GASB Statement No. 34 - Budgetary Comparison Schedules
GFOA - Budget Monitoring and Compliance
GAO Red Book - Legal Requirements for Public Spending
D). spending conforms to legal requirements.
NEW QUESTION # 21
......
Our GAFRB study materials are famous at home and abroad, the main reason is because we have other companies that do not have core competitiveness, there are many complicated similar products on the market, if you want to stand out is the selling point of needs its own. Our GAFRB Study Materials with other product of different thing is we have the most core expert team to update our GAFRB study materials , learning platform to changes with the change of the exam outline.
Valid GAFRB Exam Labs: https://www.vce4plus.com/AGA/GAFRB-valid-vce-dumps.html
BONUS!!! Download part of VCE4Plus GAFRB dumps for free: https://drive.google.com/open?id=12ntwQ42j-siqYJe8qx8dS6LCWpuGJPrf