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AGA GAFRB Exam - Topic 3 Question 12 Discussion

A federal entity would record a payment of a payable in which of the following journal entries?
D) Debit Delivered Orders-Obligations. Unpaid Credit Delivered Orders-Obligations, Paid Debit Accounts Payable Credit Fund Balance with Treasury When a federal entity pays off a payable: Budgetary accounting moves the status of the obligation from unpaid to paid Proprietary accounting reduces the payable and cash (Fund Balance with Treasury) The correct journal entry is: Budgetary: Debit Delivered Orders -- Obligations, Unpaid Credit Delivered Orders -- Obligations, Paid Proprietary: Debit Accounts Payable Credit Fund Balance with Treasury This reflects the transition from an unpaid liability to a disbursed payment, complying with federal financial reporting. Relevant Reference: Treasury Financial Manual (TFM) Vol. I, Part 2, Chapter 4700 FASAB SFFAS No. 1 and No. 7 -- Accounting for Liabilities and Budgetary Resources USSGL (U.S. Standard General Ledger) -- Posting Logic for Obligation Transactions Answer : D. Debit Delivered Orders -- Obligations, Unpaid; Credit Delivered Orders -- Obligations, Paid; Debit Accounts Payable; Credit Fund Balance with Treasury
A) Debit Undelivered Order-Obligations, Unpaid Credit Delivered Orders-Obligations, Paid Debit Accounts Payable Credit Fund Balance with Treasury
B) Debit Unapportioned Authorities Credit Delivered Orders-Obligations, Paid Debit Accounts Payable Credit Fund Balance with Treasury
C) Debit Commitments Credit Delivered Orders-Obligations, Unpaid Debit Accounts Payable Credit Fund Balance with Treasury

AGA GAFRB Exam - Topic 3 Question 12 Discussion

Actual exam question for AGA's GAFRB exam
Question #: 12
Topic #: 3
[All GAFRB Questions]

A federal entity would record a payment of a payable in which of the following journal entries?

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Suggested Answer: D

by Laticia at Nov 21, 2025, 09:05 PM

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Sylvia
3 months ago
D covers both budgetary and proprietary accounting well.
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Sharen
3 months ago
I was torn between C and D, but D is more accurate.
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Carmelina
3 months ago
D is definitely right. It aligns with federal reporting standards.
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Brandon
3 months ago
I feel confident about this one. The journal entries are clear.
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Carlton
3 months ago
Agreed! D shows the correct transition from unpaid to paid.
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Cherry
3 months ago
I think the answer is D. It makes the most sense.
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Lea
4 months ago
I disagree, I think B could also work in some cases.
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Rebeca
4 months ago
Yup, D is correct! It aligns with the TFM guidelines.
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Tammara
4 months ago
Wait, are we sure about this? Seems too straightforward.
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Maile
5 months ago
I thought it was A at first, but D makes more sense.
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Joesph
5 months ago
Haha, this question is a no-brainer. D is the obvious answer.
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Sylvie
5 months ago
D all the way! I could do this in my sleep.
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Rory
5 months ago
D is the way to go. This question is a piece of cake!
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An
5 months ago
D seems like the right choice. The budgetary and proprietary accounting entries are spot on.
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Annett
5 months ago
I'm pretty sure the answer is D. The explanation makes sense to me.
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Phuong
6 months ago
I’m leaning towards D as well, especially since it matches the TFM guidelines we reviewed. But I hope I’m not mixing up the entries!
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Matt
6 months ago
I’m not entirely sure about the specifics, but I feel like the debit and credit structure in D aligns with what we learned about paying off payables.
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Esteban
6 months ago
I remember practicing a similar question where we had to identify the correct journal entries for obligations. D seems to fit the criteria we discussed.
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Keena
6 months ago
This is a great question to practice for the exam. I'm going to make sure I thoroughly review the relevant accounting standards and USSGL guidance, and then walk through some practice journal entries to solidify my understanding. I feel like I've got a good handle on it, but I want to be 100% sure.
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Sherita
6 months ago
I'm a little confused by all the different account names. Can someone explain to me the difference between Delivered Orders-Obligations, Paid and Delivered Orders-Obligations, Unpaid? I want to make sure I have that part down before I try to answer.
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Theola
6 months ago
Okay, I've got this. The key is understanding the difference between budgetary and proprietary accounting, and how the obligation status changes from unpaid to paid. I'm confident I can walk through this step-by-step and get the right answer.
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Amalia
7 months ago
I think the answer is D, but I’m a bit confused about the difference between the budgetary and proprietary entries.
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Carol
7 months ago
Definitely option D, that’s the standard procedure.
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Lynsey
7 months ago
D is the correct answer. The journal entry accurately reflects the transition from an unpaid liability to a disbursed payment.
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Omega
8 months ago
Hmm, this is a tricky one. There are a lot of different accounts mentioned, and I want to make sure I match them up correctly. I think I'll need to draw out the full journal entry to visualize how the debits and credits flow.
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Noel
8 months ago
This looks like a pretty straightforward accounting question, but I want to make sure I understand the nuances. I'll need to carefully review the relevant accounting standards and USSGL guidance to make sure I get the journal entries right.
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Rosalyn
2 months ago
I’ll double-check the USSGL guidance too.
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Krystina
2 months ago
Definitely! The journal entries need to reflect that change.
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Luann
2 months ago
Yeah, the transition from unpaid to paid is key.
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Mauricio
7 months ago
I think option D makes the most sense.
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Antonio
7 months ago
Good idea! It’s all about accuracy in reporting.
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