GAC Study Guide 2026
Everything you need to pass the GAC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 GAC Exam Format at a Glance
📚 GAC Topics to Study (69)
✍️ Sample GAC Questions & Answers
1. Which GASB standard specifically addresses the financial reporting requirements for public entity risk pools?
GASB Statement No. 10 establishes accounting and financial reporting standards for risk financing activities and public entity risk pools.
2. Under the Uniform Guidance (2 CFR Part 200), what is the threshold for a non-federal entity to be classified as a 'large' auditee subject to Single Audit?
Under 2 CFR Part 200, non-federal entities that expend $750,000 or more in federal awards during a fiscal year must have a Single Audit.
3. A government's budget shows a $500,000 positive budget variance in salaries. This most likely indicates:
A positive (favorable) budget variance in expenditures means actual spending came in below the budgeted appropriation amount.
4. In governmental financial modeling, 'lapsing appropriations' refers to:
Lapsing appropriations are budget authorizations that automatically expire at the end of the fiscal year if not spent or encumbered.
5. How does governmental financial reporting impact public policy?
Governmental financial reporting provides crucial data on revenues, expenditures, and overall financial health. This information directly influences public policy by helping policymakers understand the financial implications of various programs and prioritize spending. It enables informed decisions on how to allocate limited resources effectively to meet public needs and achieve strategic goals.
6. Which type of governmental bond is subject to the Alternative Minimum Tax (AMT) on interest income received by investors?
Interest on private activity bonds is generally a preference item subject to AMT, while interest on governmental bonds (GO and most revenue bonds) is AMT-exempt.