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AGA GAFRB Dumps

Exam Code:
GAFRB
Exam Name:
Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB)
Last Update: Dec 7, 2025
115 Questions with Explanation
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GAFRB FAQs

GAFRB (Governmental Accounting, Financial Reporting and Budgeting) is the second exam in the Certified Government Financial Manager (CGFM) certification program offered by the Association of Government Accountants (AGA). It specifically tests in-depth knowledge of governmental accounting, financial reporting, and budgeting practices used by state and local governments in the United States.

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

Questions 1

When an accounting principle established by GASB conflicts with an accounting principle established by FASB. the preparer of financial statements for a local government should observe

Options:

A.

the principle established by GASB.

B.

the principle established by FASB.

C.

either the principle established by GASB or FASB, without additional disclosure.

D.

either the principle established by GASB or FASB, with additional disclosure required if the FASB principle is observed.

Questions 2

Which of the following revenue sources is an exchange-like transaction?

Options:

A.

income taxes

B.

operating permits

C.

fines

D.

grants

Questions 3

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

Options:

A.

the contract is signed for purchasing the asset.

B.

outlays for the asset have been made.

C.

interest cost is being incurred.

D.

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