Online Access Free GAFRB Exam Questions

The purpose for establishing a custodial fund is to

• A.provide services to the public on a fee basis.
• B.account for assets held in a trustee capacity.
• C.accumulate resources for payment of debt.
• D.track financial resources to be used for acquisition of capital facilities.

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?

• A.net weight scale
• B.FIFO
• C.LIFO
• D.average cost

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

• A.interest cost is being incurred.
• B.outlays for the asset have been made.
• C.the contract is signed for purchasing the asset.
• D.activities are in progress to get the asset ready for its intended use.

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

• A.business-type operations financed by exchange revenues
• B.grant programs distributing funds awarded in prior years
• C.provisions of benefits, goods or services financed by specific revenue sources
• D.general government programs receiving annual appropriations

When an accounting principle established by GASB conflicts with an accounting principle established by FASB. the preparer of financial statements for a local government should observe

• A.either the principle established by GASB or FASB, without additional disclosure.
• B.either the principle established by GASB or FASB, with additional disclosure required if the FASB principle is observed.
• C.the principle established by GASB.
• D.the principle established by FASB.