Online Access Free GAFRB Practice Test

A county is projecting a $7 million budget deficit in the upcoming fiscal year, so the county board, who acts as the highest level of authority for the county, sets aside $7 million in fund balance to close this gap. How should the $7 million be classified on the financial statement?

• A.Committed Fund Balance
• B.Nonspendable Fund Balance
• C.Restricted Fund Balance
• D.Assigned Fund Balance

Which of the following situations may cause contingent liabilities?

• A.building with asbestos
• B.impairment of an asset
• C.unrealized loss
• D.loss on the sale of an asset

An agency operates out of a building that is on the Register of Historic Places; the building is classified as a multi-use federal asset. If the agency recently paid to renovate the office space in the building, the cost for the renovation should be treated as a

• A.general property, plant and equipment expense.
• B.heritage asset.
• C.stewardship investment.
• D.mission property.

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

• A.stewardship.
• B.systems and control.
• C.budgetary integrity.
• D.mission readiness.

What is a law that authorizes the expenditure of funds for a given purpose?

• A.allotment
• B.apportionment
• C.budget authority
• D.appropriation