Smartly Prepare Exam with Free Online GAFRB Practice Test

We offer the latest GAFRB practice test designed for free and effective online Exam 2 - Governmental Accounting, Financial Reporting and Budgeting certification preparation. It's a simulation of the real GAFRB exam experience, built to help you understand the structure, complexity, and topics you'll face on exam day.

Question 1

A state department has been developing a new computer system for managing federal grants. The project has the following costs: What amount should be recorded as the value of the intangible asset?

Options :

A : $575.000

B : $705.000

C : $755,000

D : $915.000

Answer: C

Question 2

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

Options :

A : systems and control.

B : budgetary integrity.

C : mission readiness.

D : stewardship.

Answer: C

Question 3

Which of the following situations may cause contingent liabilities?

Options :

A : loss on the sale of an asset

B : building with asbestos

C : impairment of an asset

D : unrealized loss

Answer: B

Question 4

The federal budget baseline forecast reflects the estimated

Options :

A : receipts, outlays, and deficit or surplus under the President's Budget.

B : effects of enacting Congressional appropriations bills on federal receipts and spending.

C : receipts, outlays, and deficit or surplus that would result from continuing current law or policies.

D : effects of current law on recipients of federal benefits.

Answer: C

Question 5

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

Options :

A : interest payments

B : general government expenses

C : materials and supplies

D : lobbying expenses

Answer: C