CPFO ACCOUNTING AND FINANCIAL
REPORTING PRACTICE EXAM
QUESTIONS AND ANSWERS
Which of the following is a correct statement with respect to the public sector
environment relevant to accounting and financial reporting?
A. Various activities of a government may have different financial goals
B. There is a heightened focus on accountability
C. Both A and B
D. Neither A nor B
C. Both A and B
For which of the following would individuals normally pay based upon the
quantity they individually consume?
A. Governmental activities
B. Business-type activities
C. Both A and B
D. None of the above
B. Business-type operations
Brainpower
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Which of the following is concerned primarily with the near-term impact of
events and transactions?
A. Governmental operations
,B. Business-type operations
C. Both A and B
D. None of the above
A. Governmental operations
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B
E. Both A and B
Which of the following might be used to report resources that are available to
support the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
C. Custodial funds
D. All of the above
E. Both A and B
A. Permanent funds - only principal is restricted, earnings can be used on
governments own programs.
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
,B. Grants
C. Fees and charges
D. Resources held in trust
C. Fees and charges
The only significant difference between an enterprise fund and an internal
service fund relates to who the customers are. For enterprise funds, the
customers lie outside the enterprise. For internal service funds, the customers
are internal.
A. True
B. False
B. False - internal service funds are required to break even over time in addition
to the identity of the customers enterprise funds DO NOT have to break even
over time
Which measurement focus would more assets and liabilities be reported under a
statement of financial position?
A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B
A. Economic resources measurement focus
Which of the following would appear in a statement of resource flows prepared
using the current financial resources measurement focus?
, A. Debt proceeds received
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
D. All of the above
Which of the following would appear in a statement of resource flows prepared
using the economic resources measurement focus?
A. Debt proceeds received
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
E. None of the above
Which of the following terms could be used in a statement of resource flows
prepared using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
REPORTING PRACTICE EXAM
QUESTIONS AND ANSWERS
Which of the following is a correct statement with respect to the public sector
environment relevant to accounting and financial reporting?
A. Various activities of a government may have different financial goals
B. There is a heightened focus on accountability
C. Both A and B
D. Neither A nor B
C. Both A and B
For which of the following would individuals normally pay based upon the
quantity they individually consume?
A. Governmental activities
B. Business-type activities
C. Both A and B
D. None of the above
B. Business-type operations
Brainpower
Read More
Which of the following is concerned primarily with the near-term impact of
events and transactions?
A. Governmental operations
,B. Business-type operations
C. Both A and B
D. None of the above
A. Governmental operations
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B
E. Both A and B
Which of the following might be used to report resources that are available to
support the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
C. Custodial funds
D. All of the above
E. Both A and B
A. Permanent funds - only principal is restricted, earnings can be used on
governments own programs.
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
,B. Grants
C. Fees and charges
D. Resources held in trust
C. Fees and charges
The only significant difference between an enterprise fund and an internal
service fund relates to who the customers are. For enterprise funds, the
customers lie outside the enterprise. For internal service funds, the customers
are internal.
A. True
B. False
B. False - internal service funds are required to break even over time in addition
to the identity of the customers enterprise funds DO NOT have to break even
over time
Which measurement focus would more assets and liabilities be reported under a
statement of financial position?
A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B
A. Economic resources measurement focus
Which of the following would appear in a statement of resource flows prepared
using the current financial resources measurement focus?
, A. Debt proceeds received
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
D. All of the above
Which of the following would appear in a statement of resource flows prepared
using the economic resources measurement focus?
A. Debt proceeds received
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
E. None of the above
Which of the following terms could be used in a statement of resource flows
prepared using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
