Free CPFO Exam Braindumps
Certified Public Finance Officer (CPFO) Questions 51–55 (page: 12)

Updated On: 10-Feb-2026

Pension trust, investment trust, private-purpose trust, and agency are the types of:

  1. Internal Funds
  2. Capital Assets
  3. Private purpose Trust Funds
  4. None of these

Answer(s): D



The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00. The unit cost is $3.50. The carrying cost is 20 percent, and the carrying cost per unit is &0.70(0.20x$3.50). And, there are 255 working days per year, and each order requires three working days of lead time. What is the reorder point?

  1. 19
  2. 17
  3. 15
  4. 18

Answer(s): A



In Government Organizations, a modified approach for depreciation is used. This modified approach expenses maintenance cost and capitalizes additions and improvements, but it does not record depreciation charges. The logic behind the modified approach is:

  1. That buildings have an indefinite useful life, making depreciated charges unnecessary.
  2. Changes in fiduciary assets
  3. Changes in proprietary fund statement of revenues, expenses, and charges in fund assets.
  4. All of these

Answer(s): A



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:

  1. What 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?
  2. What 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?
  3. What 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?
  4. None of these

Answer(s): C



Governmental funds, by comparison, focus on current financial resources, asking:

  1. What is the statement of changes in fiduciary assets?
  2. What transaction and events increased or decreased the resources available for spending in the near future?
  3. What is government-wide statement of activities?
  4. Both A & C

Answer(s): B



Viewing page 12 of 42
Viewing questions 56 - 60 out of 203 questions


Post your Comments and Discuss Financial CPFO exam prep with other Community members:

AI Tutor AI Tutor 👋 I’m here to help!