Free GFOA CPFO Demo Questions

Question #1 (Topic: Demo Questions)

What is the primary purpose of a government budget?

A.

Maximize company profits

B.

Allocate public resources and establish financial priorities

C.

Eliminate all government debt

D.

Increase employee salaries only

Correct Answer: B

Question #2 (Topic: Demo Questions)

Which financial statement reports a government's assets, liabilities, and net position?

A.

Statement of Activities

B.

Balance Sheet

C.

Statement of Cash Flows

D.

Budget Report

Correct Answer: B

Question #3 (Topic: Demo Questions)

What is the main purpose of debt management?

A.

Increase borrowing every year

B.

Manage borrowing costs and financial risks

C.

Eliminate taxation

D.

Reduce government services

Correct Answer: B

Question #4 (Topic: Demo Questions)

Which investment generally has the lowest credit risk among these options?

A.

Corporate junk bonds

B.

U.S. Treasury securities

C.

Common stocks

D.

Speculative bonds

Correct Answer: B

Question #5 (Topic: Demo Questions)

What is the primary objective of internal controls?

A.

Prevent and detect errors and fraud

B.

Increase operating expenses

C.

Eliminate financial reporting

D.

Replace external audits

Next Question

Certified Public Finance Officer Exam CPFO Exam Questions

Correct Answer: B

Correct Answer: B

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Correct Answer: B

Correct Answer: A