Latest AGA GAFRB Exam dumps 2026

Question No: 1

MultipleChoice

According to GASB, when should landfill closure and post-closure costs be recognized?

Options

Aevery five years until the landfill is closed

Bwhen the landfill is closed

Cwhen payments for costs are made

Deach year the landfill is operating
Comprehensive Detailed
According to GASB Statement No. 18 (Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs), governments must recognize a portion of closure and post-closure costs each year as the landfill's capacity is used.
This is done using the 'units-of-consumption' method, meaning costs are accrued in proportion to how much of the landfill's total capacity has been filled. The total estimated cost is spread over the useful life of the landfill.
Relevant Reference:
GASB Statement No. 18 -- Landfill Closure and Postclosure Costs
GASB Codification Section L10.103
GFOA Environmental Liabilities Guidance
Answer : D. each year the landfill is operating

Question No: 2

MultipleChoice

An idle facility cost is an allowable expense to charge to federal grants when a

Options

Afluctuation in workload is reasonably expected.

Bfacility will sit idle for over one year.

Cfacility cannot be used while it is being repaired.

Dfacility is not currently needed by the agency.
Comprehensive Detailed
Under 2 CFR 200.446 of the OMB Uniform Guidance, idle facilities (or idle capacity) costs are generally unallowable. However, exceptions exist. One allowable condition is when the idleness results from fluctuations in workload that are considered normal for the type of operation.
Other allowable cases include those due to reorganization, restraint, or repair/maintenance needs --- but only within reasonable limits and duration.
Relevant Reference:
2 CFR 200.446 -- Idle Facilities and Idle Capacity
OMB Uniform Guidance (2 CFR Part 200) -- Cost Principles
GAO Red Book -- Allowable Grant Expenditures
Answer : A. fluctuation in workload is reasonably expected

Question No: 3

MultipleChoice

What role do the U.S. Department of the Treasury, GAO and OMB have in the standard-setting activities of FASAB?

Options

AThey are all non-voting advisory board members of FASAB.

BThey are all members with authority to veto any standard approved by FASAB.

CThey are all members whose agencies may be exempt from FASAB standards.

DThey are all sponsors and voting members of FASAB.

Question No: 4

MultipleChoice

What is a law that authorizes the expenditure of funds for a given purpose?

Options

Abudget authority

Ballotment

Capportionment

Dappropriation
An appropriation is a statutory authority from Congress that allows federal agencies to incur obligations and make payments (outlays) for specific purposes. It is the most common and formal type of budget authority.
Other terms:
Budget authority: General term for permission to spend
Allotment: Internal allocation by an agency
Apportionment: Control mechanism used by OMB
Relevant Reference:

US. Code Title 31 -- 1301 et seq.
GAO Red Book -- Appropriations Law
OMB Circular A-11 -- Budget Authority Definitions
Answer : D. appropriation

Question No: 5

MultipleChoice

Which entity assists the president in overseeing the preparation of the President's Budget?

Options

AGAO

BCongressional Budget Office

COMB

Dthe U.S. Department of the Treasury
The OMB assists the President in preparing the President's Budget, which is submitted annually to Congress. OMB coordinates budget instructions, evaluates agency requests, and ensures alignment with presidential policies.
Other roles:
GAO: Supports Congress and performs audits
CBO: Provides nonpartisan budget analysis to Congress

US. Code Title 31 -- Role of OMB
GAO Budget Glossary
Answer : C. OMB

US. Treasury: Manages federal finances but does not oversee budget preparation
Relevant Reference:
OMB Circular A-11 -- Role in Budget Formulation

Question No: 6

MultipleChoice

A basic financial statement that includes a budgetary comparison serves to

Options

Ademonstrate the ability of the entity to meet its commitments.

Bdemonstrate compliance with the legally adopted budget.

Cmeasure the service potential of physical and other resources.

Ddisclose and document the restrictions on resources.
A basic financial statement that includes a budgetary comparison (typically the Statement of Revenues, Expenditures, and Changes in Fund Balances -- Budget and Actual) is used to demonstrate whether the government complied with its legally adopted budget.
This is a core element of accountability in governmental financial reporting and is required under GASB Statement No. 34.
Relevant Reference:
GASB Statement No. 34 -- Budgetary Comparison Statements
GASB Codification Section 2400 -- Budgetary Accounting and Reporting
GFOA Best Practices -- Budget Monitoring and Reporting
Answer : B. demonstrate compliance with the legally adopted budget

Free AGA GAFRB Exam Dumps September 2026