GFOA CPFO Exam Practice Test Instant Access

Question 1

Which of the following danger sign/s help to detect Auditors' fraud?

ABorrowing small amounts from fellow employees

BPronounced criticism of others, endearing to divert suspicion

CReplying to Questions with unreasonable explanations

DAll of these

Answer : D

Question 2

Governments are increasingly using capital lease financing because it:

ADose not pledge full-faith-and-credit

Bis not subject to voter approval

Cis usually not subject to a state's Go debt cap

DAll of these

Answer : D

Question 3

Revenue bonds are a liability limited to the pledged revenue. The issuer is thus not obligated _________ to repay the debt.

ALevy taxes

BGeneral fund revenues

CBoth of these

DNone of these

Answer : C

Question 4

General obligation (Go) bonds are typically repaid over 20 years and are usually sold:

APublicly to the lowest bidder

BPrivately to the lowest bidder

CPublicly to the highest bidder

DPrivately to the highest bidder

Answer : A

Question 5

Which one of the following is not the type of debt financing?

AGo bonds

BRevenue bonds

CSpecial obligation bonds

DNone of these

Answer : D

Question 6

As the security of Go debt issue, state and local governments pledge their Faith and credit (their general taxing power); however revenue bonds are not backed by full faith or credit. Instead, the bond security agreement pledges a _________, known as the debt cover.

AGo debt capacity

BGo debt use capacity

CRate covenant

DNone of These

Answer : C

Question 7

A full-Faith-and-credit bond is a term used for:

ALease Financing

BRevenue Bonds

CGeneral obligation Bonds

DNone of these

Answer : C

GFOA Certified Public Finance Officer Exam Practice Test