Use High-Quality AGA GAFRB Dumps- Try Free Demo

A city issues S100,000 of 10-year general obligation bonds on April 1, 2024. Debt service of $10,000 must be paid each year on March 31, with 5% interest paid on the unpaid balance. Based upon this information, the interest expense reported on the government-wide statement for fiscal year ending March 31, 2025, is

A$ 3,750.

B$ 4,500.

C$5,000.

D$15.000.

Question 2

The Prompt Payment Act requires federal agencies to

Apay invoices when received.

Btake discounts when economically justified.

Cpay invoices no later than sixty days from receiving the invoice.

Dpay invoices by the invoice due date.

Question 3

Which of the following events requires both a proprietary and a budgetary accounting entry?

AA contracting officer signs a contract to buy printers.

BA contracting officer's representative receives delivery of previously ordered printers.

CA funds certifying official commits resources to order printers.

DA budget officer allots resources to a program office to buy printers.
This is the point when a proprietary entry and a budgetary entry must both be recorded:
Proprietary entry: To record the asset (e.g., equipment) and recognize the payable
Budgetary entry: To move from unpaid obligation (Undelivered Orders) to paid obligation (Delivered Orders)
Receiving goods/services triggers both the accrual of the expense and the update of the obligation's status in the budgetary accounts.
Relevant Reference:
FASAB SFFAS No. 1 -- Accounting for Selected Assets and Liabilities
Treasury Financial Manual, Part 2, Ch. 4700 -- Proprietary vs. Budgetary Accounting
GAO Red Book -- Appropriations Law
Answer : B. A contracting officer's representative receives delivery of previously ordered
printers.

Question 4

The Department of the Interior has the following costs associated with the development of a new visitor tracking system.

Research cost determining if system should be internally or externally developed $100,000

Software configuration and system development $750,000

Cost of testing the new system for fiscal usage $225,000

Converting data from old tracking system to new tracking system $500,000

How much should be capitalized as the cost of the asset?

A$750,000

B$975,000

C$1,475,000

D$1,575,000
FASAB SFFAS No. 10 (Accounting for Internal Use Software) provides guidance for capitalizing software development costs. The following costs are capitalized:
Software configuration and development: $750,000
Testing for functionality (ready for use): $225,000
These fall within the 'software development stage.'
The following are not capitalized:
Research costs (e.g., feasibility studies): $100,000 Expense
Data conversion costs: $500,000 Expense (unless part of application development, which it's not here)
Capitalized total = $750,000 + $225,000 = $975,000
Relevant Reference:
FASAB SFFAS No. 10 -- Accounting for Internal Use Software
OMB Circular A-136 -- Capitalization Guidance
Treasury Financial Manual (TFM) -- Capital Assets
Answer : B. $975,000

Question 5

An agency operates out of a building that is on the Register of Historic Places; the building is classified as a multi-use federal asset. If the agency recently paid to renovate the office space in the building, the cost for the renovation should be treated as a

Aheritage asset.

Bmission property.

Cstewardship investment.

Dgeneral property, plant and equipment expense.
Although the building is listed on the National Register of Historic Places (a heritage asset), renovations that support current operations and serve general purposes (e.g., office upgrades) are considered capitalizable or expensed under general property, plant, and equipment (G-PP&E), not stewardship or heritage classifications.
Stewardship or heritage classifications apply to assets whose primary purpose is historical preservation, not ongoing operations.
Relevant Reference:
FASAB SFFAS No. 29 -- Heritage Assets and Stewardship Land
FASAB SFFAS No. 6 -- General PP&E Accounting
OMB Circular A-136 -- Capital Asset Guidance
Answer : D. general property, plant and equipment expense

Unlock All Features of AGA GAFRB Dumps Software

Just have a look at the best and updated features of our GAFRB dumps which are described in detail in the following tabs. We are very confident that you will get the best deal on this platform.

Select Question
Types you want

Set your desired
pass percentage

Allocate Time
(Hours: Minutes)

Create Multiple
Practice test with
limited questions

Customer
Support

Latest Success Metrics For actual GAFRB Exam

This is the best time to verify your skills and accelerate your career. Check out last week's results, more than 90% of students passed their exam with good scores. You may be the Next successful Candidate.

95%

Average Passing Scores in final Exam

91%

Exactly Same Questions from these dumps

90%

Customers Passed AGA GAFRB exam