GFOA CPFO Exam Practice Test Instant Access

Question 1

Assume that the bank's monthly costs are $12,250, the 30-day Treasury bill rate is 10.4%, and the bank is subject to a 15% reserve requirement. What is the MCB (Minimum compensating balance)?

A$141,629

B$142,629

C$141,529

DNone of these

Answer : A

Question 2

Life cycle costing results in _________overall cost.

ALower

BHigher

CBalancing

DIt depends

Answer : A

Question 3

Proprietary and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting. Proprietary funds focus on changes in economic resources, similar to private sector businesses, asking:

AWhat transaction and events have increased the fund's total economic resources during the reporting period, measured by changes in net assets like revenues and expenses?

BWhat transaction and events have decreased he fund's total economic resources during the reporting period, measured by changes in net assets like revenues and expenses?

CWhat transaction and events have increased or decreased he fund's total economic
resources during the reporting period, measured by changes in net assets like revenues and expenses?

DNone of these

Answer : C

Question 4

Funds accounts for all unrestricted contributions, gifts and other income that can be used for any purpose are known as?

ACurrent restricted funds

BGeneral funds

CCurrent funds

DAll of there

Answer : D

Question 5

RFP (Request for proposals) includes:

AA description of past account activity

BThe services required

CThe date of pre-proposal conference to answer questions about the RFP

DAll of these

Answer : D

Question 6

All of the following are core banking services EXCEPT:

AInvestment management

BSecurity services

CReconciliation Services

DConcentration and Zero balance

Answer : A

Question 7

Fund-level financial statements are prepared to present:

Aboth a short and long term perspective on governmental finances.

Binformation on financing activities.

Cinformation that is more narrowly focused than mandated by government standards.

Da detailed short term view of government services.

Answer : D

GFOA Certified Public Finance Officer CPFO Exam Practice Test