AGA Exam GAFRB Topic 2 Question 4 Discussion

Actual exam question for AGA's GAFRB exam

Question #: 4
Topic #: 2

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?

Afiduciary

Bgovernmental

Cproprietary

Dgeneral
The governmental fund category is used to account for the core services of a government that are primarily supported by taxes and other non-exchange revenues. These services include public safety, education, health, transportation, and social services. It includes the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.
While option D (general fund) is technically a fund within the governmental category, the broader and more accurate classification is 'governmental.'
Relevant Reference:
GASB Statement No. 34 -- Basic Financial Statements for State and Local Governments
GASB Codification Section 1300 -- Fund Types
GFOA Fund Structure Guidance
Answer : B. governmental

Show Suggested Answer

Suggested Answer: B

by Marge at Jul 03, 2025, 01:30 PM

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Shelba

7 days ago

Governmental fund, huh? Guess that's where they keep all the tax money. I bet the politicians are just itching to get their hands on that juicy pot of cash. *wink wink*

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Tasia

20 hours ago

I wouldn't be surprised if some politicians try to dip into that fund for their own benefit.

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Larue

3 days ago

Yeah, the governmental fund is where they manage all the tax money for public services.

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Dean

10 days ago

I think the answer is B) governmental.

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Shawnna

15 days ago

Governmental fund category? Sounds like a real snooze-fest. Where's the excitement, the adrenaline? I want to account for some high-risk, high-reward funds, not boring old public services!

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