Higher Test Marks with Free Online GAFRB Exam Practice

Assess the CertsIQ’s updated GAFRB exam questions for free online practice of your Exam 2 - Governmental Accounting, Financial Reporting and Budgeting test. Our GAFRB dumps questions will enhance your chances of passing the Certified Government Financial Manager certification exam with higher marks.

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

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?

Options :

A : supplies, equipment depreciation, staffing

B : staffing, location rent, equipment depreciation

C : supplies, equipment depreciation, location rent

D : staffing, location rent, supplies

Answer: B

Question 4

Which of the following events is an example of an expenditure but not an expense?

Options :

A : At the end of the fiscal year, the government signs a contract to buy office furniture.

B : At the end of the fiscal year, the government pays its employees for work performed.

C : At the end of the fiscal year, the government pays for ten vehicles which will be depreciated over five years.

D : At the end of the fiscal year, the government receives and pays its electric bill for the previous month.

Answer: C

Question 5

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