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AGA GAFRB Exam - Topic 3 Question 9 Discussion

The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations as the standard-setting body for federal accounting and reporting standards?
D) FASAB The Federal Financial Management Improvement Act (FFMIA) of 1996 established the requirement for federal agencies to implement and maintain financial systems that comply with federal accounting standards. It formally recognized the Federal Accounting Standards Advisory Board (FASAB) as the source of GAAP for federal agencies. FASAB's standards are authoritative for federal entities, much like GASB for state and local governments and FASB for private-sector entities. Relevant Reference: Federal Financial Management Improvement Act of 1996 (Public Law 104--208, Title VIII) FASAB Handbook -- Introduction & Authority GAO Federal Accounting Standards Overview Answer : D. FASAB
A) OMB
B) FASB
C) GAO

AGA GAFRB Exam - Topic 3 Question 9 Discussion

Actual exam question for AGA's GAFRB exam
Question #: 9
Topic #: 3
[All GAFRB Questions]

The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations as the standard-setting body for federal accounting and reporting standards?

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Suggested Answer: D

by Laticia at Aug 17, 2025, 04:20 PM

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Phuong
6 months ago
Really? I had no idea FASAB was the one!
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Teddy
6 months ago
Wait, I thought it was GAO?
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Crista
6 months ago
Totally agree, FASAB sets the standards for federal accounting.
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Alpha
6 months ago
FASAB is the right answer!
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Amber
7 months ago
OMB doesn't set the standards, just oversees them.
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Jacqueline
8 months ago
I feel like I’ve seen a question like this before, and I think FASAB was definitely mentioned as the standard-setting body.
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Aron
8 months ago
I keep mixing up FASAB and GAO; I hope I remember that FASAB is the one recognized by the FFMIA.
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Shaun
8 months ago
I remember studying that FASAB sets the standards for federal accounting, similar to how FASB does for the private sector.
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Marylyn
8 months ago
I think FASAB is the right answer, but I’m not completely sure if it’s the only one recognized by the FFMIA.
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Bulah
9 months ago
This seems like a straightforward question about the Federal Financial Management Improvement Act. I'm pretty sure the answer is D, FASAB, since they are the recognized standard-setting body for the federal government. I'll double-check my understanding, but I feel good about this one.
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Della
9 months ago
I'm a bit confused on this one. I know it has to do with federal accounting standards, but I'm not sure which organization was formally recognized. I'll have to review my notes and try to eliminate the options that don't seem right.
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Gary
9 months ago
Okay, let me see if I can break this down. The question is asking about the standard-setting body for federal accounting, and the Act is mentioned, so I'll focus on that. I think the answer is D, FASAB.
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Mollie
9 months ago
Hmm, this question is a bit tricky. I'll need to think it through carefully. I know the Act established standards for federal agencies, but I'm not sure which specific organization it recognized.
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Rodney
9 months ago
I'm pretty confident I know the answer to this one. The Federal Financial Management Improvement Act of 1996 formally recognized FASAB as the standard-setting body for federal accounting and reporting standards.
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Tonja
10 months ago
D. FASAB - makes sense, they're the go-to for federal accounting standards. Glad the FFMIA cleared that up.
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Cassi
10 months ago
FASAB? That's a new one for me. I would have guessed the OMB since they seem to have a hand in everything federal.
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Tawny
7 months ago
Surprising how many people overlook it!
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Leah
7 months ago
Yeah, FASAB sets the standards for federal accounting.
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Alease
7 months ago
I thought OMB was the main one too!
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Rana
7 months ago
FASAB is definitely less known.
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Arthur
10 months ago
Why do you think it's FASAB?
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Teddy
11 months ago
I think the answer is FASAB.
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