AGA GAFRB : Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB)

  • Exam Code: GAFRB
  • Exam Name: Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB)
  • Updated: Oct 07, 2026

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About AGA GAFRB Exam

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AGA GAFRB Exam Overview:

Certification Vendor:AGA (Association of Government Accountants)
Exam Name:Examination 2: Governmental Accounting, Financial Reporting and Budgeting
Exam Number:GAFRB
Exam Price:$150 USD
Related Certifications:Examination 1: Governmental Environment
Examination 3: Governmental Financial Management and Control
Exam Duration:135 minutes
Available Languages:English
Exam Format:Computer-based exam, Multiple-choice questions
Real Exam Qty:115
Certificate Validity Period:18 months eligibility period; certification valid indefinitely with continuing education
Passing Score:60%
Recommended Training:AGA Official Study Materials
Exam Registration:AGA Official Registration
Pearson VUE Scheduling
Sample Questions:Free Download GAFRB Exam PDF Torrent
Exam Way:Onsite at Pearson VUE centers or online proctored via OnVUE
Pre Condition:Bachelor's degree from accredited institution; no prior exam required; 2 years relevant experience needed before certification award
Official Syllabus URL:https://www.agacgfm.org/CGFM/Candidates/CGFMProcess/Examination/Exam2.aspx

AGA GAFRB Exam Syllabus Topics:

SectionWeightObjectives
Governmental Financial Accounting, Reporting and Budgeting: General Knowledge40%- Measurement focus and basis of accounting
  • 1. Economic resources vs current financial resources measurement focus
  • 2. Accrual, modified accrual, and cash basis accounting
- General concepts of budgeting
  • 1. Budgetary compliance and reporting
  • 2. Budget process, structure, and approaches
- Influences, objectives and role of accounting standards
  • 1. Roles of standard-setting bodies: GASB, FASAB, FASB, IPSASB
  • 2. Objectives of financial reporting in government
  • 3. Differences between governmental and private sector accounting
- Elements of financial statements and reporting requirements
  • 1. Basic financial statements: government-wide and fund statements
  • 2. Notes to financial statements and required supplementary information
State and Local Financial Accounting and Reporting30%- Comprehensive Annual Financial Report (CAFR) structure and content
- Fund accounting and classification
  • 1. Governmental, proprietary, and fiduciary fund types
  • 2. Basis of accounting and measurement focus by fund type
- GASB standards and reporting entity definition
  • 1. Component units and financial reporting entity
- Recognition and measurement of assets, liabilities, revenues, and expenditures
  • 1. Capital assets, long-term obligations, and inventory valuation
  • 2. Revenue recognition: exchange and non-exchange transactions
Federal Financial Accounting and Reporting30%- Budgetary and proprietary accounting
  • 1. Budgetary authority, resources, outlays, and collections
  • 2. Fund balance with Treasury and federal fund types
- Federal financial statements and reporting
  • 1. Agency Financial Report (AFR) and Performance and Accountability Report (PAR)
  • 2. Credit reform and loan guarantee accounting
- Federal budgeting concepts and processes
- Federal accounting environment and standard-setting
  • 1. Roles of OMB, Treasury, GAO, and FASAB

AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Exam: Questions Candidates Actually Ask

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TorrentVCE issues a full refund if you take the AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam within 60 days of purchase and do not pass. The policy does not apply if the exam is taken within 3 days of purchase, if the exam was never actually taken, or to free materials or expired orders, and the candidate name must match the payer name. Submit a scan of your enrollment slip and the official Score Report PDF within 2 days of the exam; claims are processed within 7 days. Alternatively, exchange for two free exam products of equal value and keep your original update service. Orders arrive by email within 1 minute — contact support if nothing arrives within 2 hours.

The AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam requires 60% to pass, and registration costs $150 USD. A failed attempt means paying the same fee again — a readiness check with the TorrentVCE engines before booking is the cheaper option.

The official AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) outline defines 3 domains. The leading three are Federal Financial Accounting and Reporting (30%), Governmental Financial Accounting, Reporting and Budgeting: General Knowledge (40%), and State and Local Financial Accounting and Reporting (30%). The full list is in the topics section above, and TorrentVCE's 117 practice questions cover each one.

The AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam contains 115 to complete within 135 minutes. Timed simulation in the TorrentVCE Desktop Test Engine teaches that rhythm before exam day does.

Bachelor's degree from accredited institution; no prior exam required; 2 years relevant experience needed before certification award Since requirements change over time, confirm the latest on the official AGA exam page before scheduling.

Three versions of the same study materials: a printable, expert-prepared PDF with free demo download and instant access; a Desktop Test Engine for Windows that simulates the real exam with two practice modes and works offline; and an Online Test Engine for any browser on Windows, Mac, Android, and iOS with test history and performance review. All 117 practice questions are identical across versions. Every purchase includes 365 days of free updates, a 50% renewal discount afterward, and unlimited computer installations.

The GAFRB exam is a AGA certification exam validating the AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) syllabus shown above. It belongs to these credential paths: Examination 1: Governmental Environment, Examination 3: Governmental Financial Management and Control. Earning it in 2026 demonstrates ability in a form employers recognize — and TorrentVCE prepares candidates with 117 practice questions in PDF, Desktop Test Engine, and Online Test Engine formats.

AGA recommends these training resources for the AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam:

Follow the training with steady self-testing — the 117 practice questions from TorrentVCE help you apply theory and fill any gaps the training leaves.

AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Sample Questions:

Question #1

When determining the full costs of a specific product or service, if the costs cannot be directly traced to the product or service, the costs should be assigned based upon

  • A. a direct labor relationship.
  • B. an incremental or marginal relationship.
  • C. an opportunity cost approach.
  • D. a cause-and-effect relationship between resource costs and outputs.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

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?

  • A. $4.264.000
  • B. $4.060.000
  • C. $4,252,000
  • D. $4.048.000
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

An agency offers service for a fee; bad debts have historically averaged 5% of each year's fee revenue. During the past fiscal year, $1.1 million in fee revenue was recorded and $1 million in fees was collected. What is the bad debt expense recorded for the past fiscal year?

  • A. $ 55.000
  • B. $100,000
  • C. $ 50.000
  • D. $ 5.000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

What fund category traditionally accounts for the general services to the public such as public safety, health, transportation, social services and the administration of the government?

  • A. fiduciary
  • B. proprietary
  • C. general
  • D. governmental
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

The four general government auditing standards are

  • A. supervision, planning, management controls and evidence.
  • B. planning, internal controls, independence and irregularities.
  • C. qualifications, independence, due professional care and quality control.
  • D. compliance, timeliness, qualifications and due professional care.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for TorrentVCE members. You can sign-up / login (it's free).

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