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Certification exams change, and so do we. Your GAFRB purchase from Fast2test includes 365 days of free updates, so your AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) practice questions always reflect the current 2026 syllabus.

AGA GAFRB Exam Overview:

Certification Vendor:AGA (Association of Government Accountants)
Exam Name:Examination 2: Governmental Accounting, Financial Reporting and Budgeting
Exam Number:GAFRB
Certificate Validity Period:18 months eligibility period; certification valid indefinitely with continuing education
Exam Format:Computer-based exam, Multiple-choice questions
Available Languages:English
Passing Score:60%
Exam Price:$150 USD
Exam Duration:135 minutes
Real Exam Qty:115
Related Certifications:Examination 1: Governmental Environment
Examination 3: Governmental Financial Management and Control
Recommended Training:AGA Official Study Materials
Exam Registration:Pearson VUE Scheduling
AGA Official Registration
Sample Questions:AGA GAFRB Sample Questions
Exam Way:Onsite at Pearson VUE centers or online proctored via OnVUE
Pre Condition:Bachelor's degree from accredited institution; no prior exam required; 2 years relevant experience needed before certification award
Official Syllabus URL:https://www.agacgfm.org/CGFM/Candidates/CGFMProcess/Examination/Exam2.aspx

AGA GAFRB Exam Syllabus Topics:

SectionWeightObjectives
Governmental Financial Accounting, Reporting and Budgeting: General Knowledge40%- Influences, objectives and role of accounting standards
  • 1. Differences between governmental and private sector accounting
  • 2. Objectives of financial reporting in government
  • 3. Roles of standard-setting bodies: GASB, FASAB, FASB, IPSASB
- General concepts of budgeting
  • 1. Budgetary compliance and reporting
  • 2. Budget process, structure, and approaches
- Measurement focus and basis of accounting
  • 1. Economic resources vs current financial resources measurement focus
  • 2. Accrual, modified accrual, and cash basis accounting
- Elements of financial statements and reporting requirements
  • 1. Basic financial statements: government-wide and fund statements
  • 2. Notes to financial statements and required supplementary information
Federal Financial Accounting and Reporting30%- Federal financial statements and reporting
  • 1. Agency Financial Report (AFR) and Performance and Accountability Report (PAR)
  • 2. Credit reform and loan guarantee accounting
- Federal budgeting concepts and processes
- Budgetary and proprietary accounting
  • 1. Budgetary authority, resources, outlays, and collections
  • 2. Fund balance with Treasury and federal fund types
- Federal accounting environment and standard-setting
  • 1. Roles of OMB, Treasury, GAO, and FASAB
State and Local Financial Accounting and Reporting30%- Recognition and measurement of assets, liabilities, revenues, and expenditures
  • 1. Capital assets, long-term obligations, and inventory valuation
  • 2. Revenue recognition: exchange and non-exchange transactions
- Fund accounting and classification
  • 1. Basis of accounting and measurement focus by fund type
  • 2. Governmental, proprietary, and fiduciary fund types
- GASB standards and reporting entity definition
  • 1. Component units and financial reporting entity
- Comprehensive Annual Financial Report (CAFR) structure and content

AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Exam FAQs and Straight Answers

The GAFRB exam, officially titled Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB), is the qualifying test for the Certified Government Financial Manager (CGFM) certification from AGA (Association of Government Accountants), a credential at the Professional level. Passing it proves you have the skills employers look for in certified professionals, and it can also support progress toward related credentials such as Examination 1: Governmental Environment, Examination 3: Governmental Financial Management and Control.

The AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam gives you 135 minutes to work through 115 questions. That is a steady pace with little room for second-guessing, so train yourself to read each question once, flag the difficult ones, and keep moving. Before exam day, sit at least two full timed sessions in the Fast2test test engine — when the clock feels familiar, it stops being a threat.

You need 60% to pass, and the official registration fee is $150 USD. Fall short and you pay that fee in full again for every retake, which makes solid preparation the cheaper option by far. Work through the Fast2test practice questions until you score comfortably above the passing mark, then book your seat.

Bachelor's degree from accredited institution; no prior exam required; 2 years relevant experience needed before certification award Eligibility rules can change over time, so before you register, confirm the latest requirements on the official exam page: AGA (Association of Government Accountants) GAFRB exam overview.

You can book your GAFRB exam through any of these official registration channels:

The exam is delivered as Onsite at Pearson VUE centers or online proctored via OnVUE, so you can pick the option that fits your schedule when you book.

AGA (Association of Government Accountants) recommends the following training for AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) candidates:

Pair that training with the 117 practice questions from Fast2test and you can check your readiness topic by topic before exam day.

Yes. Fast2test offers a free PDF demo for the AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) exam so you can judge the quality of our questions and answers before paying anything. Every purchase also comes with 365 days of free updates, and once that period expires you can extend your update service at a 50% discount.

Your purchase is protected by a 100% money-back guarantee. If you sit the corresponding GAFRB exam within 60 days of buying and do not pass, send us a scan of your exam enrollment slip together with your official Score Report (PDF) within 2 days of the exam date — the candidate name must match the payer's name — and we will process your full refund within 7 days. Please note that exams taken within 3 days of purchase, materials downloaded without ever sitting the exam, free products, and expired orders are not covered. If you would rather not have a refund, you can exchange your order for two exam products of equal value, free of charge, and keep the update service on your original purchase.

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The AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) syllabus is organized into 3 domains. The main areas include Governmental Financial Accounting, Reporting and Budgeting: General Knowledge (40%), State and Local Financial Accounting and Reporting (30%), and Federal Financial Accounting and Reporting (30%). Scroll up to the Exam Topics section above for the complete, current outline before you plan your study schedule.

AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) Sample Questions:

Entity receivables are described as amounts that

  • A. the entity anticipates receiving via appropriate warrant from the U.S. Department of the Treasury.
  • B. the entity collects on behalf of the U.S. government or other entities that the entity is not authorized to spend.
  • C. the entity collects on behalf of other federal entities and deposits directly with the U.S. Department of the Treasury.
  • D. a federal entity claims from other federal or non-federal entities that the federal entity is authorized to spend.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

Using the cost recovery method of recognizing revenue, premiums are recognized as revenue

  • A. when the policy takes effect.
  • B. once the ultimate premium can be reasonably estimated.
  • C. when received.
  • D. throughout the duration of the policy when claim costs are incurred.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

The federal budget baseline forecast reflects the estimated

  • A. receipts, outlays, and deficit or surplus that would result from continuing current law or policies.
  • B. effects of current law on recipients of federal benefits.
  • C. effects of enacting Congressional appropriations bills on federal receipts and spending.
  • D. receipts, outlays, and deficit or surplus under the President's Budget.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

A budget document that lists the budget by social services, affordable housing and supplies includes which of the following significant elements?

  • A. program, function, category
  • B. organizational unit, program, category
  • C. function, program, object class
  • D. function, category, object class
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

A specific operation of the government is funded by 60% from the general fund, 40% from specific revenues.
This should be reported in which fund?

  • A. internal service fund
  • B. capital projects fund
  • C. special revenue fund
  • D. general fund
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

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