AGA GAFRB Exam - Topic 1 Question 7 Discussion

Actual exam question for AGA's GAFRB exam

Question #: 7
Topic #: 1

An example of a federal principal financial statement is the

AStatement of Operations.

BStatement of Budgetary Resources.

CStatement of Cash Flows.

DStatement of Net Income.
Federal principal financial statements are required under OMB Circular A-136 and FASAB standards. They include:
Statement of Budgetary Resources (SBR)
Balance Sheet
Statement of Net Cost
Statement of Changes in Net Position
Statement of Custodial Activity (if applicable)
There is no ''Statement of Cash Flows'' or ''Statement of Net Income'' in federal accounting --- those are private-sector financial statements.
Relevant Reference:
OMB Circular A-136
FASAB SFFAS No. 53 -- Principal Financial Statements
Treasury Financial Manual (TFM) Volume I
Answer : B. Statement of Budgetary Resources

Show Suggested Answer

Suggested Answer: B

by Maryann at Jul 10, 2025, 04:28 AM

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Caprice

2 months ago

OMB Circular A-136 really lays it all out. Good to know!

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Ashlee

2 months ago

Wait, there's no Statement of Cash Flows in federal accounting? That's surprising!

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Rozella

3 months ago

Yeah, I thought net income was a thing too. Guess not!

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Domingo

3 months ago

Totally agree, it's all about the SBR!

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Jade

3 months ago

Statement of Budgetary Resources is definitely a federal principal statement!

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Edmond

3 months ago

I’m leaning towards B as well, but I keep mixing up the different statements. I know the Statement of Net Income is definitely not federal, though!

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Crista

4 months ago

I’m a bit confused because I thought the Statement of Operations was important too, but I guess it’s not considered a principal financial statement in federal accounting.

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Leota

4 months ago

I feel like we practiced a question similar to this, and I remember the Statement of Cash Flows being a common distractor. It’s definitely not a federal principal statement.

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Sherly

4 months ago

I think the Statement of Budgetary Resources is the right answer, but I’m not completely sure. I remember it being mentioned in our OMB Circular A-136 review.

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Carolann

4 months ago

I've got this one! The federal principal financial statements are laid out in OMB Circular A-136 and FASAB standards. The key ones are the Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, and the Statement of Budgetary Resources. So the correct answer here is B, the Statement of Budgetary Resources.

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Lynette

4 months ago

Okay, let me think this through step-by-step. The question is asking for an example of a federal principal financial statement. The answer choices include the Statement of Operations, Statement of Cash Flows, and Statement of Net Income, which I don't believe are part of the federal financial statements. The Statement of Budgetary Resources does sound familiar as one of the required statements, so I'm going to go with that.

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Eugene

5 months ago

Hmm, I'm a little unsure about this one. I know the federal principal financial statements include things like the Balance Sheet and Statement of Net Cost, but I can't quite remember if the Statement of Budgetary Resources is one of them. I'll have to think this through carefully.

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Alease

5 months ago

This one seems pretty straightforward. I'm pretty confident the answer is B, Statement of Budgetary Resources, since that's one of the required federal principal financial statements.

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Jessenia

7 months ago

Haha, a 'Statement of Net Income'? Really? Sounds like something my grandpa's company would use, not the federal government.

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Luther

5 months ago

User 1: I think the answer is B) Statement of Budgetary Resources.

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Evan

7 months ago

That's right, Ceola. The Statement of Operations is not a federal principal financial statement.

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Kerrie

7 months ago

The Statement of Budgetary Resources is one of the required federal principal financial statements according to OMB Circular A-136 and FASAB standards.

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Jeanice

7 months ago

Yep, the Statement of Budgetary Resources is what we're looking for. Can't believe they threw in those other private sector statements as distractors!

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