CPFO Accounting exam 2025 LATEST QUESTIONS AND DETAILS ANSWERS GRADED A+

CPFO Accounting exam 2025
LATEST QUESTIONS AND DETAILS
ANSWERS GRADED A+




Which of the following groups normally would NOT be considered a
primary user of state or local government's general-purpose external
financial statements?
A. Citizens
B. Legislative and oversight bodies
C. Management
D. Investors and creditors - {ASNWER}-C - The primary users of general-
purpose external financial statements are those who, unlike
management, do not have direct access to accounting information.
(page 6) (Chapter 1)


Which of the following groups took the lead in setting generally
accepted accounting principles (GAAP) for business enterprises?
A. Businesses themselves

,B. State governments
C. Federal government
D. Independent auditors - {ASNWER}-D - Independent auditors took the
lead in codifying GAAP in the private sector, whereas financial
statement preparers took the lead in codifying GAAP in the public
sector. (page 6) (Chapter 1)


Which organization appoints the members of the Governmental
Accounting Standards Board (GASB)
A. Financial Accounting Foundation (FAF)
B. Governmental Accounting Standards Advisory Council (GASAC)
C. American Institute of Certified Public Accountants (AICPA)
D. Securities and Exchange Commission (SEC) - {ASNWER}-A - The FAF
appoints the members of both the FASB and the GASB (page 7) (Chapter
1)


Which of the following has the LOWEST authoritative status on the
GAAP hierarchy?
A. Widely recognized and prevalent practices
B. NCGA interpretations
C. GASB Concept Statements
D. The AICPA's audit and accounting guide for State and Local
Governments - {ASNWER}-C - A GASB Concepts Statement is not part of
the GAAP hierarchy as such, but rather constitutes an "other source" of
GAAP. (page 14) (Chapter 1)

,Which of the following entities is NEVER subject to GASB jurisdiction?
A. A hospital
B. A college or university
C. A utility
D. None of the above - {ASNWER}-D - In 1989, the FAF categorically
affirmed the GASB's jurisdiction over all entities operating in the public
sector, including utilities, hospitals, colleges, and universities (page 9)
(Chapter 1)


Which of the following types of guidance has the HIGHEST stand on the
GAAP hierarchy
A. GASB Technical Bulletins
B. GASB Concept Statements
C. GASB implementation Guides
D. GASB Interpretations - {ASNWER}-D - GASB Interpretations qualify as
"level 1" GAAP on the GAAP hierarchy. (page 14) (Chapter 1)


Which of the following statements is TRUE?
A. Both the Financial Accounting Standards Board (FASB) and the GASB
are supported in their work by advisory councils
B. Both the FASB and the GASB have 7 members
C. Both the FASB and the GASB can approve pronouncements by a
simple majority vote

, D. All of the above - {ASNWER}-D - All four statements are true. (page 7)
(Chapter 1)


Which of the following sets GAAP for nonprofit organizations?
A. FAF
B. AICPA
C. GASB
D. FASB - {ASNWER}-D - The jurisdiction of the FASB covers both private-
sector businesses and nonprofit organizations (page 8) (Chapter 1)


Which of the following organizations has designated the GASB as the
authoritative standard-setting body for state and local governments?
A. FAF
B. AICPA
C. GAO
D. SEC - {ASNWER}-B - The AICPA, which represents the independent
auditing profession, has officially designated the FASB, the GASB, and
the FASAB as the authoritative standard-setting bodies for GAAP in their
respective sectors. (page 9) (Chapter 1)


Which of the following BEST describes the purpose of GASB's "due
process" procedures?
A. Obtain approval for proposed guidance from key constituents
B. Persuade constituents of the soundness of proposed guidance