20:00Min. left

PDF|

Guide for GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting

Quiz GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting

Updated on 2026/09/08

PDF|

Guide for GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting

Updated on 2026/09/08

Randomized | 10 Questions per Test | 20 Minutes | 70% to pass

Learning Mode

Free Test

Question: / 10

20:00Min. left

Question: / 10

4.6

Quiz

Question 1/101/10

The Office of Personnel Management provides employee pension benefits for an agency's employees
and bills the agency for a portion of the costs. The portion of costs not billed to the agency is an

Select the answer:Select the answer

1 correct answer

imputed cost to be recognized by the Office of Personnel Management.

inferred cost to be recognized by the Office of Personnel Management.

imputed cost to be recognized by the agency.

inferred cost to be recognized by the agency.

When a federal agency participates in a pension plan administered by another government entity
(such as the Office of Personnel Management, OPM), and OPM bills the agency for a portion of the
cost while covering the remainder itself, the portion not billed is considered an "imputed cost" to the
agency. This imputed cost represents the agency's share of employee pension benefits that are
financed on its behalf by another entity.
Accounting guidance requires that the employing agency recognize both the amount billed and the
amount covered by OPM as a pension expense, recording the imputed cost as an expense and as an
imputed financing source in its own financial statements. This treatment ensures full recognition of
the economic cost of employing personnel, even if part of that cost is not directly paid by the agency.
Key references and standards:
Federal Accounting Standards Advisory Board (FASAB) SFFAS No. 5, “Accounting for Liabilities of the
Federal Government”:
“Employing entities should recognize the cost of pensions and other postemployment benefits
during their employees' active years of service. The cost recognized includes the amount contributed
by the employing entity and the portion contributed by other entities on the entity’s behalf, which is
called an imputed cost.”
FASAB SFFAS No. 4, “Managerial Cost Accounting Standards and Concepts”:
“Costs that are incurred by one entity but paid by another entity, and that benefit the reporting
entity, should be recognized by the reporting entity as imputed costs and imputed financing.”
OMB Circular A-136, Section II.2.7.3:
“Imputed costs are to be recognized for the costs of goods and services received from other federal
entities at no or reduced cost, such as pension and postretirement health benefits...”
Therefore, answer choice C is correct: the agency recognizes the imputed cost.
Disclaimer: This custom GPT is continuously improving, but it may not always provide accurate
information and can make mistakes. Validate important information for relevancy, completeness and
accuracy with your subject matter experts (SMEs).

Right Answer: C

Quiz

Question 2/102/10

The Prompt Payment Act requires federal agencies to

Select the answer:Select the answer

1 correct answer

pay invoices when received.

take discounts when economically justified.

pay invoices no later than sixty days from receiving the invoice.

pay invoices by the invoice due date.

Quiz

Question 3/103/10

An agency is developing a lee for services to cover all direct operating expenditures. Which of the
following should be included in the fee calculation?

Select the answer:Select the answer

1 correct answer

supplies, equipment depreciation, staffing

staffing, location rent, equipment depreciation

supplies, equipment depreciation, location rent

staffing, location rent, supplies

Quiz

Question 4/104/10

What role do the U.S. Department of the Treasury, GAO and OMB have in the standard-setting
activities of FASAB?

Select the answer:Select the answer

1 correct answer

They are all non-voting advisory board members of FASAB.

They are all members with authority to veto any standard approved by FASAB.

They are all members whose agencies may be exempt from FASAB standards.

They are all sponsors and voting members of FASAB.

Quiz

Question 5/105/10

The purpose for establishing a custodial fund is to

Select the answer:Select the answer

1 correct answer

account for assets held in a trustee capacity.

accumulate resources for payment of debt.

track financial resources to be used for acquisition of capital facilities.

provide services to the public on a fee basis.

Quiz

Question 6/106/10

For state and local governments, a fund that is legally restricted to the use of earnings with the
principal protected is

Select the answer:Select the answer

1 correct answer

an enterprise fund.

a permanent fund.

an internal service fund.

a general fund.

Quiz

Question 7/107/10

A local government is evaluating different financing options for an upcoming capital project. Which
of the following debt instruments will typically offer the lowest interest rate?

Select the answer:Select the answer

1 correct answer

commercial paper

general obligation bonds

revenue bonds

certificate of deposit

Quiz

Question 8/108/10

If an internal service fund needs to develop an hourly billing rate, the calculation should include

Select the answer:Select the answer

1 correct answer

all materials consumed during the year.

the acquisition cost of equipment purchased during the year.

the replacement cost of equipment purchased during the year.

all materials purchased during the year, even if the materials were not consumed.

Quiz

Question 9/109/10

A city issues S100,000 of 10-year general obligation bonds on April 1, 2024. Debt service of $10,000
must be paid each year on March 31, with 5% interest paid on the unpaid balance. Based upon this
information, the interest expense reported on the government-wide statement for fiscal year ending
March 31, 2025, is

Select the answer:Select the answer

1 correct answer

$ 3,750.

$ 4,500.

$5,000.

$15.000.

Quiz

Question 10/1010/10

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

Select the answer:Select the answer

1 correct answer

income taxes

operating permits

fines

grants

Looking for more questions?Buy now

GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Practice test unlocks all online simulator questions

Thank you for choosing the free version of the GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice test! Further deepen your knowledge on AGA Simulator; by unlocking the full version of our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator you will be able to take tests with over 115 constantly updated questions and easily pass your exam. 98% of people pass the exam in the first attempt after preparing with our 115 questions.

BUY NOW

What to expect from our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice tests and how to prepare for any exam?

The GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator Practice Tests are part of the AGA Database and are the best way to prepare for any GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting exam. The GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice tests consist of 115 questions and are written by experts to help you and prepare you to pass the exam on the first attempt. The GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting database includes questions from previous and other exams, which means you will be able to practice simulating past and future questions. Preparation with GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator will also give you an idea of the time it will take to complete each section of the GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice test . It is important to note that the GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator does not replace the classic GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting study guides; however, the Simulator provides valuable insights into what to expect and how much work needs to be done to prepare for the GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting exam.

BUY NOW

GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Practice test therefore represents an excellent tool to prepare for the actual exam together with our AGA practice test . Our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator will help you assess your level of preparation and understand your strengths and weaknesses. Below you can read all the quizzes you will find in our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator and how our unique GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Database made up of real questions:

Info quiz:

Quiz name:GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting
Total number of questions:115
Number of questions for the test:50
Pass score:80%

You can prepare for the GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting exams with our mobile app. It is very easy to use and even works offline in case of network failure, with all the functions you need to study and practice with our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator.

Use our Mobile App, available for both Android and iOS devices, with our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Simulator . You can use it anywhere and always remember that our mobile app is free and available on all stores.

Our Mobile App contains all GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice tests which consist of 115 questions and also provide study material to pass the final GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting exam with guaranteed success. Our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting database contain hundreds of questions and AGA Tests related to GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Exam. This way you can practice anywhere you want, even offline without the internet.

BUY NOW

Quiz GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting

Free Test - Simulator GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting

GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting Practice test unlocks all online simulator questions

What to expect from our GAFRB: AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting practice tests and how to prepare for any exam?