GAFRB Exam Information and Outline
Governmental Accounting, Financial Reporting and Budgeting (Exam 2)
Syllabus Update Checked on: November 10, 2026
GAFRB Exam Syllabus & Study Guide
Before you start practicing with our exam simulator, it is essential to understand the
official GAFRB exam objectives. This course outline serves as your roadmap.
The information below reflects the 2026 syllabus defined by
AGA.
Below are complete topics detail with latest syllabus and course outline, that will help you good knowledge about exam objectives and topics that you have to prepare. These contents are covered in questions and answers pool of exam.
- Exam Format
- 115 multiple-choice questions; duration 2 hours 15 minutes
- I. Governmental Financial Accounting, Reporting and Budgeting: General Knowledge (40%)
- Influences, Objectives and Role of Standards
- Government vs. private sector; interperiod equity
- Objectives, uses and characteristics of governmental financial reporting
- Roles of FASB, GASB, FASAB and IPSASB; due process; GAAP hierarchy
- Managerial Cost Accounting and Fee Establishment
- Full cost of outputs; SFFAS 4; Uniform Guidance cost principles
- Direct and indirect cost allocation; computing user fees; cost recovery
- Budgeting
- Budget process and structure
- Line item, program, zero-base and performance budgeting
- Capital budgets, revenue and expenditure forecasting, budgetary control
- General Principles of Governmental Accounting
- Measurement focus and basis of accounting (accrual, modified accrual)
- Exchange vs. non-exchange transactions
- Doubtful accounts, inventory methods, depreciation and contingencies
- Influences, Objectives and Role of Standards
- II. State and Local Financial Accounting and Reporting (30%)
- Reporting entity and component units
- Fund types and categories; ACFR and popular reporting
- Government-wide and fund financial statements, notes and RSI
- Fund balance reporting; capital assets and long-term obligations
- Modified accrual and accrual transactions; interfund transactions
- Deposit and investment disclosures; modified approach for infrastructure
- Budgetary entries, encumbrances and budget-to-GAAP differences
- Reconciling fund statements to government-wide statements; government combinations
- III. Federal Financial Accounting and Reporting (30%)
- Roles of FASAB, OMB, Treasury and GAO
- Budgetary terms and the federal budgetary equation
- Budgetary vs. proprietary accounting; types of funds; USSGL
- Recording budgetary and proprietary transactions
- Reporting entity, AFR/PAR, basic financial statements, notes and RSI
- Fund Balance with Treasury; Credit Reform Act loans and guarantees
- U.S. Consolidated Financial Report