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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Maile

9 hours ago

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

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Joesph

6 days ago

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

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Sylvie

11 days ago

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

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Rory

16 days ago

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

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An

21 days ago

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

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Annett

26 days ago

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

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Phuong

1 month 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

1 month 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

1 month 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

2 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

2 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

2 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

2 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

2 months ago

Definitely option D, that’s the standard procedure.

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Lynsey

3 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

3 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

3 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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Mauricio

2 months ago

I think option D makes the most sense.

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Antonio

3 months ago

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

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