AGA GAFRB Exam Dumps

Get All Examination 2: Governmental Accounting, Financial Reporting and Budgeting Exam Questions with Validated Answers

GAFRB Pack
Vendor: AGA
Exam Code: GAFRB
Exam Name: Examination 2: Governmental Accounting, Financial Reporting and Budgeting
Exam Questions: 115
Last Updated: May 22, 2026
Related Certifications: Certified Government Financial Manager
Exam Tags: AGA Financial Analysis Professional Level government financial analysts
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Free AGA GAFRB Exam Actual Questions

Question No. 1

Who is responsible for making apportionments and allotments?

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Correct Answer: B

Question No. 2

A government issues general obligation bonds at a premium. The associated amortization would be reported on the

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Correct Answer: B

Question No. 3

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?

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Correct Answer: A

Question No. 4

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?

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Correct Answer: B

Question No. 5

A legally separate organization for which the elected officials of the primary government are financially accountable describes a

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Correct Answer: B

A component unit is a legally separate entity for which the elected officials of the primary government are financially accountable. This accountability may arise if the primary government:

Appoints a majority of the governing board, and

Is able to impose its will or has the potential to receive financial benefits or bear financial burdens.

Component units are reported in the financial statements of the primary government, either as blended or discretely presented entities.

Relevant Standards and Reference:

GASB Statement No. 14, The Financial Reporting Entity

GASB Statement No. 61, The Financial Reporting Entity: Omnibus

GASB Codification Section 2100: Defining the Financial Reporting Entity

Therefore, Option B is correct.


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