AGA GAFRB Exam - Topic 3 Question 12 Discussion

Actual exam question for AGA's GAFRB exam

Question #: 12
Topic #: 3

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

ADebit Undelivered Order-Obligations, Unpaid
Credit Delivered Orders-Obligations, Paid Debit Accounts Payable
Credit Fund Balance with Treasury

BDebit Unapportioned Authorities
Credit Delivered Orders-Obligations, Paid Debit Accounts Payable
Credit Fund Balance with Treasury

CDebit Commitments
Credit Delivered Orders-Obligations, Unpaid Debit Accounts Payable
Credit Fund Balance with Treasury

DDebit 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

Show Suggested Answer

Suggested Answer: D

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

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Sylvia

1 month ago

D covers both budgetary and proprietary accounting well.

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Sharen

1 month ago

I was torn between C and D, but D is more accurate.

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Carmelina

1 month ago

D is definitely right. It aligns with federal reporting standards.

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Brandon

2 months ago

I feel confident about this one. The journal entries are clear.

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Carlton

2 months ago

Agreed! D shows the correct transition from unpaid to paid.

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Cherry

2 months ago

I think the answer is D. It makes the most sense.

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Lea

2 months ago

I disagree, I think B could also work in some cases.

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Rebeca

2 months ago

Yup, D is correct! It aligns with the TFM guidelines.

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Tammara

2 months ago

Wait, are we sure about this? Seems too straightforward.

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Maile

3 months ago

I thought it was A at first, but D makes more sense.

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Joesph

3 months ago

Haha, this question is a no-brainer. D is the obvious answer.

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Sylvie

3 months ago

D all the way! I could do this in my sleep.

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Rory

4 months ago

D is the way to go. This question is a piece of cake!

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An

4 months ago

D seems like the right choice. The budgetary and proprietary accounting entries are spot on.

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Annett

4 months ago

I'm pretty sure the answer is D. The explanation makes sense to me.

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Phuong

4 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

4 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

4 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

5 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

5 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

5 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

5 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

5 months ago

Definitely option D, that’s the standard procedure.

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Lynsey

6 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

6 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

6 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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