GAFRB Dumps (V8.02) Are Available to Help You Complete the Governmental Accounting, Financial Reporting, and Budgeting Exam for CGFM Certification

1. To capitalize a research and development asset, it must

2. An example of a non-exchange revenue is

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

4. What fund category traditionally accounts for the general services to the public such as public safety, health, transportation, social services and the administration of the government?

5. A special-purpose government is considered a primary government when it has any of the following characteristics EXCEPT that it

6. GASB considers interperiod (intergenerational) equity when

7. An agency offers service for a fee; bad debts have historically averaged 5% of each year's fee revenue. During the past fiscal year, $1.1 million in fee revenue was recorded and $1 million in fees was collected.

What is the bad debt expense recorded for the past fiscal year?

8. 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?

9. 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

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?

11. The Prompt Payment Act requires federal agencies to

12. Based on FASAB standards, calculate the full cost of 1 unit of an output using the following information:

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

14. Using the cost recovery method of recognizing revenue, premiums are recognized as revenue

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

16. Which of the following situations may cause contingent liabilities?

17. If a capital project has an estimated life of 30 years, which financing method is designed to impose the cost of the project on the generation who benefits from it?

18. According to GASB, when should landfill closure and post-closure costs be recognized?

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

20. 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?

21. Which of the following federal collections are typically accounted for in a deposit fund?

22. The Government Management Reform Act of 1994 amended the CFO Act of 1990 to require

23. The purpose for establishing a custodial fund is to

24. The process in the budget where OMB communicates to agencies what it will recommend to the president is called

25. The objectives of federal financial reporting include all of the following EXCEPT

26. What is the entry when rent of $500 is paid?

27. Government, public, private and not-for-profit entities all share which common goal of financial reporting?

28. The unobligated balance of an appropriation is equal to the total unexpended appropriation, less the total amounts

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

30. A private bank provides a student loan that the government has insured against default. This is an example of

31. Which of the following government-wide financial statements are required for state and local governments?

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

33. An independent school district completed construction on a new high school during the current fiscal year. The amount paid to the construction manager was $900,000 and the amount paid to the architect was $100,000. The entity depreciates buildings over 50 years, using the straight line, half-year depreciation method.

What is the amount reported on the Statement of Activities in the current fiscal year?

34. Which type of cost is generally allowed for a grant under the OMB Uniform Guidance?

35. All the following are required financial statement reporting on governmental funds EXCEPT

36. Which federal agency activities would most likely use a trust fund to account for funds received and paid?

37. A budget document that lists the budget by social services, affordable housing and supplies includes which of the following significant elements?

38. A federal entity would record a payment of a payable in which of the following journal entries?

39. A city utilizing a 60-day availability period has a June 30 year-end. It levies property taxes in January that are due in March, which are used to finance the general fund. The city levied S15 million in taxes in the current fiscal year, collecting $12 million during the fiscal year.

In addition, the following amounts were collected in the months after year-end:

July $1,000,000

September $ 250,000

How much revenue should the general fund recognize for the fiscal year?

40. 1.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