[Mar-2026 Newly Released] Pass GAFRB Exam – Real Questions & Answers [Q63-Q78]

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[Mar-2026 Newly Released] Pass GAFRB Exam – Real Questions and Answers

Pass GAFRB Review Guide, Reliable GAFRB Test Engine

NEW QUESTION 63
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?

30-year serial bonds

30-year term bonds, without a sinking fund

30-year zero-coupon bonds, without a sinking fund

pay-as-you-go financing

NEW QUESTION 64
In state and local financial audits, material weaknesses must be reported to the

legislature.

governing body.

taxpayers.

local media.

NEW QUESTION 65
The capitalization of interest begins when all of the following conditions are met EXCEPT

the contract is signed for purchasing the asset.

outlays for the asset have been made.

interest cost is being incurred.

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

NEW QUESTION 66
Which of the following situations may cause contingent liabilities?

loss on the sale of an asset

building with asbestos

impairment of an asset

unrealized loss

NEW QUESTION 67
The primary purpose of accumulating and reporting cost information is to O

inform stockholders of detailed operational data.

provide a means for management to assess decision performance.

include specific details in external financial statements.

meet a SEC reporting requirement.

NEW QUESTION 68
OMB Circular A-136 requires that all of the following be included in an AFR EXCEPT

a message from the head of the agency.

the MD&A.

the financial section.

the performance section.

NEW QUESTION 69
Purchase orders are issued in the amount of $427,000. The general ledger entry to record the encumbrance should be

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

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

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

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

NEW QUESTION 70
If an internal service fund needs to develop an hourly billing rate, the calculation should include

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.

NEW QUESTION 71
A state grant will reimburse a city for 40% of the architectural, construction and project management costs to build an annex to a city building. A city employee, who is paid salary and benefits of 510,000 a month, works half-time on the project for six months.
The city reports the following project budgeted and actual costs:
Purpose Budget Actual
Architectural fees $ 100.000 $ 90,000
Construction costs $10,500,000 $10,000,000
Based upon the above information, what is the amount of allowable costs that the state will reimburse the city on the grant?

$4.048.000

$4.060.000

$4,252,000

$4.264.000

NEW QUESTION 72
Government, public, private and not-for-profit entities all share which common goal of financial reporting?

provide users with decision support

provide users with the current status of the entity

inform users about the ability of the entity to generate revenue

demonstrate the nature of cash receipts and disbursements

NEW QUESTION 73
Who is responsible for making apportionments and allotments?

apportionments are made by committees, OMB makes allotments

apportionments are made by OMB, agencies make allotments

apportionments are made by agencies, Congress makes allotments

apportionments are made by Congress, OMB makes allotments

NEW QUESTION 74
A government issues general obligation bonds at a premium. The associated amortization would be reported on the

Statement of Activities as a component of depreciation expense.

Statement of Activities as a component of interest expense.

Statement of Revenues, Expenditures, and Changes in Fund Balance as a component of interest expenditures.

Statement of Revenues, Expenditures, and Changes in Fund Balance as a component of depreciation expenditures.

NEW QUESTION 75
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?

supplies, equipment depreciation, staffing

staffing, location rent, equipment depreciation

supplies, equipment depreciation, location rent

staffing, location rent, supplies

NEW QUESTION 76
A legally separate organization for which the elected officials of the primary government are financially accountable describes a

fiscally dependent organization.

component unit.

joint venture entity.

jointly governed organization.

NEW QUESTION 77
Congress plans to set up an activity within an agency that would:
* provide procurement services to other agencies;
* reimburse fees to the providing agency at a level that would cover the total estimated costs of the services.
The fees would be deposited in the providing agency’s accounts and would remain available until expended, to carry out the purposes of the fund. This arrangement describes a

revolving fund.

special fund.

trust fund.

general fund.

NEW QUESTION 78
GASB establishes standards through a

unanimous vote of the board members, after discussing the results of written and oral comments offered by interested parties on an exposure draft submitted by GASB staff.

vote of the majority of board members, after discussing the results of a preliminary views document submitted by GASB staff.

unanimous vote of the board members, confirming that the standards would improve the usefulness of financial reports.

vote of the majority of board members, after discussing the written and oral comments offered by interested parties on an exposure draft of a statement of proposed standards.

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