CPFO: Certified Public Finance Officer (CPFO)
Free Practice Exam Questions (page: 18)
Updated On: 2-Jan-2026

An agency receives miscellaneous revenue and investment revenue. The January beginning balance is $12,000. Monthly revenue is projected to be $2,000 and monthly expenses are projected to be $1,800. The agency plans to purchase a $10,000 90-day bond at par value on January 15. The agency has a $20,000 90-day bond that matures on February 15. What is the projected cash balance at the end of March?

  1. $11,400
  2. $12,600
  3. $22,600
  4. $32,600

Answer(s): C



An audit tool used to examine financial data to detect fraud is:

  1. red flag detection.
  2. compiling data.
  3. data mining.
  4. regression analysis.

Answer(s): C



Using purchasing cards for contract purchases creates efficiencies for all of the following EXCEPT:

  1. detection of fraudulent purchases.
  2. savings in transaction costs.
  3. improved cash flow for the vendor.
  4. streamlining payment in the accounts payable system.

Answer(s): A



The U.S. Standard General Ledger will be used to record financial events for federal agencies, and common data elements shall be used throughout a federal agency for collection, storage and retrieval of financial information records according to OMB circular number:

  1. A-87.
  2. A-122.
  3. A-127.
  4. A-133.

Answer(s): C



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