GFOA CPFO Accounting and Financial
Reporting Exam Questions with All
Correct Answers
In the statement of activities, which of the following is always classified as general
revenue? - Answer-Taxes
Which fund would report a statement of cash flows? - Answer-Enterprise fund
Which fund type could report a budgetary comparison schedule as part of required
supplementary information? - Answer-Major special revenue fund
GFOA recommends that general-purpose governments maintain unrestricted fund
balance for the general fund at no less than: - Answer-two months of general fund
revenues or expenditures.
Which of the following could be reported in the government-wide statements for a
government with a defined benefit pension plan? - Answer-Net pension liability
What three columns are required in the mandatory budgetary comparison schedule? -
Answer-Original budget, Actual amounts presented on a budgetary basis, Final revised
budget
Yellow Book: is often used to describe the auditing standards issued by the: - Answer-
Government Accountability Office
An auditor's report is deemed "modified" if it states that: - Answer-The financial
statements are fairly presented "except for"
Single Audit is required when federal awards expended exceeds: - Answer-$750,000
GFOA recommends that audit contracts should be for a minimum of how many years? -
Answer-5 years
The audit opinion does NOT cover which three items? - Answer-Transmittal letter,
Managements' discussion and analysis, Required supplementary information
The main goal of the annual audit of the financial statement is to: - Answer-assure the
financial statements are free of material misstatements
, Which of the following does GFOA recommend serving on an audit committee? -
Answer-Members from the governing board
Donations of commodities for school lunch programs constitute what type of revenue? -
Answer-nonexchange revenues (2020 GAAFR P. 620 Chapter 38Grant Accounting)
Voluntary payments made by a state to third parties on behalf of the employees of
another government as a form of assistance (on-behalf benefit payments) should be
recorded by the state as? - Answer-a grant to the other government (2020 GAAFR P.
631 Grant Accounting)
When should debt issued to finance capital grants to other governments be part of the
calculation of the amount reported as net investment in capital assets? - Answer-Never
(2020 GAAFR P. 632 Grant Accounting)
The Management's Discussion and Analysis (MD&A) should explain the reasons for
significant variances between: - Answer-the original and the final amended budget in
the general fund (2020 GAAFR P. 527 Transmittal Letter and MD&A)
What section within the CAFR might include subjective information? - Answer-
Transmittal Letter (2020 GAAFR P. 548 Transmittal Letter and MD&A)
Management's assertions that a new development will be completed next year could be
presented in the: - Answer-Transmittal letter (2020 GAAFR P. 548 Transmittal Letter
and MD&A)
Management's Discussion and Analysis (MD&A), which is required supplementary
information (RSI), should be presented: - Answer-Immediately following the auditor's
letter (2020 GAAFR P. 525 Transmittal Letter and MD&A)
In the Management's Discussion and Analysis (MD&A), the presentation of comparative
financial data: - Answer-Must be in the form of condensed financial statements (2020
GAAFR P. 526 Transmittal Letter and MD&A)
In the Management's Discussion and Analysis (MD&A), no-commitment special
assessment debt could be included: - Answer-in the discussion of capital asset activity
(2020 GAAFR P. 527)
Ultimate responsibility for internal control rests with - Answer-The governing board
Which of the following types of fraud is least likely in an environment where cash
receipting and record keeping for accounts receivable are adequately segregated? -
Answer-Lapping
What is the best way to select a sample to test internal control? - Answer-Random
sampling
Reporting Exam Questions with All
Correct Answers
In the statement of activities, which of the following is always classified as general
revenue? - Answer-Taxes
Which fund would report a statement of cash flows? - Answer-Enterprise fund
Which fund type could report a budgetary comparison schedule as part of required
supplementary information? - Answer-Major special revenue fund
GFOA recommends that general-purpose governments maintain unrestricted fund
balance for the general fund at no less than: - Answer-two months of general fund
revenues or expenditures.
Which of the following could be reported in the government-wide statements for a
government with a defined benefit pension plan? - Answer-Net pension liability
What three columns are required in the mandatory budgetary comparison schedule? -
Answer-Original budget, Actual amounts presented on a budgetary basis, Final revised
budget
Yellow Book: is often used to describe the auditing standards issued by the: - Answer-
Government Accountability Office
An auditor's report is deemed "modified" if it states that: - Answer-The financial
statements are fairly presented "except for"
Single Audit is required when federal awards expended exceeds: - Answer-$750,000
GFOA recommends that audit contracts should be for a minimum of how many years? -
Answer-5 years
The audit opinion does NOT cover which three items? - Answer-Transmittal letter,
Managements' discussion and analysis, Required supplementary information
The main goal of the annual audit of the financial statement is to: - Answer-assure the
financial statements are free of material misstatements
, Which of the following does GFOA recommend serving on an audit committee? -
Answer-Members from the governing board
Donations of commodities for school lunch programs constitute what type of revenue? -
Answer-nonexchange revenues (2020 GAAFR P. 620 Chapter 38Grant Accounting)
Voluntary payments made by a state to third parties on behalf of the employees of
another government as a form of assistance (on-behalf benefit payments) should be
recorded by the state as? - Answer-a grant to the other government (2020 GAAFR P.
631 Grant Accounting)
When should debt issued to finance capital grants to other governments be part of the
calculation of the amount reported as net investment in capital assets? - Answer-Never
(2020 GAAFR P. 632 Grant Accounting)
The Management's Discussion and Analysis (MD&A) should explain the reasons for
significant variances between: - Answer-the original and the final amended budget in
the general fund (2020 GAAFR P. 527 Transmittal Letter and MD&A)
What section within the CAFR might include subjective information? - Answer-
Transmittal Letter (2020 GAAFR P. 548 Transmittal Letter and MD&A)
Management's assertions that a new development will be completed next year could be
presented in the: - Answer-Transmittal letter (2020 GAAFR P. 548 Transmittal Letter
and MD&A)
Management's Discussion and Analysis (MD&A), which is required supplementary
information (RSI), should be presented: - Answer-Immediately following the auditor's
letter (2020 GAAFR P. 525 Transmittal Letter and MD&A)
In the Management's Discussion and Analysis (MD&A), the presentation of comparative
financial data: - Answer-Must be in the form of condensed financial statements (2020
GAAFR P. 526 Transmittal Letter and MD&A)
In the Management's Discussion and Analysis (MD&A), no-commitment special
assessment debt could be included: - Answer-in the discussion of capital asset activity
(2020 GAAFR P. 527)
Ultimate responsibility for internal control rests with - Answer-The governing board
Which of the following types of fraud is least likely in an environment where cash
receipting and record keeping for accounts receivable are adequately segregated? -
Answer-Lapping
What is the best way to select a sample to test internal control? - Answer-Random
sampling
