CPFO COMPREHENSIVE STUDY GUIDE
2026 FULLY SOLVED QUESTION SET
◉Night deposits. Answer: are generally the most expensive for
governments
◉The biggest disadvantage in credit card acceptance is. Answer: the
1-2% processing fee
◉The general rule of thumb is that local governments should be able
to collect. Answer: 95% or more of the current tax levy in the
current fiscal year
◉float. Answer: The lapse time between the deposit of a check and
the time it is paid by the bank is known as
◉Mail float. Answer: is the amount of time a payment remains in the
mail system from the time sent to the government until the
government has physical possession of the check
◉A government can use... to reduce time on float collections.
Answer: over the counter, account consolidation, and concentration
accounts
,◉From a cash management standpoint, disbursements should be
timed so that they. Answer: remove cash from the government's
treasury only at the last possible moment
◉Centralization. Answer: can help streamline the number of
accounts that must be maintained, reduce the number of
transactions, and limit the amount of oversight needed to monitor
account activity and related transactions
◉ACH and direct deposit have reduce. Answer: weekend float
significantly
◉Just-in-time processing dictates the. Answer: processing of
disbursements at the last possible moment vs. batch processing
which batches transactions
◉Treasury managers should seek to. Answer: increase
disbursements float and decrease receipt float
◉Disbursement float factors include. Answer: delivery/mail,
processing, and collection
◉Governments should ... when using P-Cards. Answer: educate
users, develop solid internal controls, and provide regular audits
, ◉Payroll disbursements. Answer: are the most common form of
ACH transfer
◉Debt services. Answer: should be wired on the due date
◉Derivatives. Answer: are financial instruments whose value is
derived from the value of something else and should be used with
extreme caution
◉State law dictates. Answer: the instruments available for
governments to invest in
◉Home rule-. Answer: means the state passes the decision making
authority for investment types down to the municipality
◉The primary market. Answer: involves the sale/purchase of newly
issued securities by investment bankers to investors
◉All sales of the same security after the first sale are said to.
Answer: occur within the secondary market
◉LGIPs consolidate funds from. Answer: a large pool of investors to
take advantage of economies of scale
2026 FULLY SOLVED QUESTION SET
◉Night deposits. Answer: are generally the most expensive for
governments
◉The biggest disadvantage in credit card acceptance is. Answer: the
1-2% processing fee
◉The general rule of thumb is that local governments should be able
to collect. Answer: 95% or more of the current tax levy in the
current fiscal year
◉float. Answer: The lapse time between the deposit of a check and
the time it is paid by the bank is known as
◉Mail float. Answer: is the amount of time a payment remains in the
mail system from the time sent to the government until the
government has physical possession of the check
◉A government can use... to reduce time on float collections.
Answer: over the counter, account consolidation, and concentration
accounts
,◉From a cash management standpoint, disbursements should be
timed so that they. Answer: remove cash from the government's
treasury only at the last possible moment
◉Centralization. Answer: can help streamline the number of
accounts that must be maintained, reduce the number of
transactions, and limit the amount of oversight needed to monitor
account activity and related transactions
◉ACH and direct deposit have reduce. Answer: weekend float
significantly
◉Just-in-time processing dictates the. Answer: processing of
disbursements at the last possible moment vs. batch processing
which batches transactions
◉Treasury managers should seek to. Answer: increase
disbursements float and decrease receipt float
◉Disbursement float factors include. Answer: delivery/mail,
processing, and collection
◉Governments should ... when using P-Cards. Answer: educate
users, develop solid internal controls, and provide regular audits
, ◉Payroll disbursements. Answer: are the most common form of
ACH transfer
◉Debt services. Answer: should be wired on the due date
◉Derivatives. Answer: are financial instruments whose value is
derived from the value of something else and should be used with
extreme caution
◉State law dictates. Answer: the instruments available for
governments to invest in
◉Home rule-. Answer: means the state passes the decision making
authority for investment types down to the municipality
◉The primary market. Answer: involves the sale/purchase of newly
issued securities by investment bankers to investors
◉All sales of the same security after the first sale are said to.
Answer: occur within the secondary market
◉LGIPs consolidate funds from. Answer: a large pool of investors to
take advantage of economies of scale
