Free CPFO Exam Braindumps
Certified Public Finance Officer (CPFO) Questions 86–90 (page: 19)

Updated On: 10-Feb-2026

GAAP requires that the fees for enterprise fund services like water, sewer, and electricity offset costs. As a policy decision, governing board members choose among four water and sewer rate structures. Those are all EXCEPT:

  1. Declining Block and Seasonal Rate
  2. Changing Rate
  3. Ascending block
  4. None of these

Answer(s): B



Local governments sometimes provide water and sewer service to customers outside their jurisdiction. These customers are typically charged _____________ than those living inside the government because of extra cost of extending service to them.

  1. More
  2. Less
  3. Same
  4. It depends

Answer(s): A



Centralization is most cost effective than decentralization purchasing because:

  1. Purchases are better scheduled
  2. Goods are more systematically inspected
  3. Suppliers operate under a single set of rules and expectations
  4. All of these

Answer(s): D



Vendors sometimes attempt to unduly influence governing board members, the CEO, and agency personnel to buy their goods or services. To avoid such situations, the governing board of a government should adopt an ethics policy. The NIGP recommends a policy that governments and non-profits might want to:

  1. Change the Control basics
  2. Adopt or adapt
  3. handover the control to a third party (Consultants)
  4. None of these

Answer(s): B



QPL is a specification based on:

  1. Manufacturers' names
  2. Brand names or model numbers that have been examined and approved for purchase by the government or nonprofit.
  3. None of these
  4. Both of these

Answer(s): D



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