Discuss AGA GAFRB Exam Topic 3 Question 12

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

Suggested Answer: D

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31 comments · newest first

Sylvia 6 months ago

D covers both budgetary and proprietary accounting well.

Sharen 6 months ago

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

Carmelina 6 months ago

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

Brandon 6 months ago

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

Carlton 6 months ago

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

Cherry 6 months ago

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

Lea 7 months ago

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

Rebeca 7 months ago

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

Tammara 7 months ago

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

Maile 8 months ago

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

Joesph 8 months ago

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

Sylvie 8 months ago

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

Rory 8 months ago

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

An 8 months ago

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

Annett 8 months ago

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

Phuong 9 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!

Matt 9 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.

Esteban 9 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.

Keena 9 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.

Sherita 9 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.

Theola 9 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.

Amalia 10 months ago

I think the answer is D, but I’m a bit confused about the difference between the budgetary and proprietary entries.

Carol 10 months ago

Definitely option D, that’s the standard procedure.

Lynsey 10 months ago

D is the correct answer. The journal entry accurately reflects the transition from an unpaid liability to a disbursed payment.

Omega 11 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.

Noel 11 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.

Rosalyn 5 months ago

↳ replying to Noel

I’ll double-check the USSGL guidance too.

Krystina 5 months ago

↳ replying to Noel

Definitely! The journal entries need to reflect that change.

Luann 5 months ago

↳ replying to Noel

Yeah, the transition from unpaid to paid is key.

Mauricio 10 months ago

↳ replying to Noel

I think option D makes the most sense.

Antonio 10 months ago

↳ replying to Noel

Good idea! It’s all about accuracy in reporting.

AGA GAFRB Exam - Topic 3 Question 12 Discussion