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GAFRB Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) is now Stable and With Pass Result | Test Your Knowledge for Free

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GAFRB Practice Questions

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

Last Update 9 hours ago
Total Questions : 115

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Question # 21

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

Options:

A.  

A contracting officer signs a contract to buy printers.

B.  

A contracting officer's representative receives delivery of previously ordered printers.

C.  

A funds certifying official commits resources to order printers.

D.  

A budget officer allots resources to a program office to buy printers.

Discussion 0
Question # 22

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

Options:

A.  

$190.000.

B.  

$240.000.

C.  

$430.000.

D.  

$480.000.

Discussion 0
Question # 23

A federal agency submits its budget request to which of the following?

Options:

A.  

the U.S. Department of the Treasury

B.  

OMB

C.  

GAO

D.  

Congress

Discussion 0
Question # 24

The footnotes to audited financial statements disclose

Options:

A.  

information about the auditor's opinion on the financial statements.

B.  

the agency's performance metrics.

C.  

a summary of significant accounting policies.

D.  

the accounting principles used to prepare the financial statements.

Discussion 0
Question # 25

According to GASB, the costs of which of the following activities associated with internally generated computer software should be capitalized?

Options:

A.  

selecting between alternatives for the software project

B.  

converting extra data not needed to make the software work

C.  

testing the software for functionality and ease of use

D.  

training employees to use the software

Discussion 0
Question # 26

Accounts that are closed at year-end include

Options:

A.  

taxes receivable.

B.  

tax revenues.

C.  

supplies inventory.

D.  

unassigned fund balance.

Discussion 0
Question # 27

Which account is used to temporarily hold general, special or trust fund federal government collections or disbursements pending clearance to the applicable receipt or expenditure accounts?

Options:

A.  

Transfer Allocation Account

B.  

Deposit Fund Account

C.  

Suspense Account

D.  

Clearing Account

Discussion 0
Question # 28

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

Options:

A.  

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

B.  

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

C.  

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

D.  

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

Discussion 0
Question # 29

A basic financial statement that includes a budgetary comparison serves to

Options:

A.  

demonstrate the ability of the entity to meet its commitments.

B.  

demonstrate compliance with the legally adopted budget.

C.  

measure the service potential of physical and other resources.

D.  

disclose and document the restrictions on resources.

Discussion 0
Question # 30

State and local governments account for budgeted and actual expenditures to ensure that

Options:

A.  

cash is available to pay bills when they come due.

B.  

GASB standards are met when producing the basic financial statements.

C.  

actual expenditures are used to formulate next year's budget.

D.  

spending conforms to legal requirements.

Discussion 0
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