GFOA Exam CPFO Topic 10 Question 60 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 60
Topic #: 10

[All CPFO Questions]

GAAP requires that the fees for enterprise fund services like water, sewer, and electricity offset costs. As a policy decision, governing board members choose among four water and sewer rate structures. Those are all EXCEPT:

ADeclining Block and Seasonal Rate

BChanging Rate

CAscending block

DNone of these

Show Suggested Answer

Suggested Answer: D

by Melodie at Oct 28, 2022, 03:06 AM

Limited Time Offer

25%

Off

Get Premium CPFO Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Reita

30 days ago

Wait, is this a trick question? I mean, who even comes up with these water and sewer rate structures anyway? It's like they're trying to confuse us.

upvoted 0 times

...

Alyssa

1 months ago

I'm going with C) Ascending block. It just sounds like the kind of rate structure that would be frowned upon by GAAP.

upvoted 0 times

...

Susana

1 months ago

Ugh, rate structures are the bane of my existence. Can we just go back to the good old days of free water and electricity? *sigh*

upvoted 0 times

...

2 months ago

I'm pretty sure the correct answer is B) Changing Rate. GAAP requires that enterprise fund services offset costs, so the rate structure can't be 'Changing Rate' - that would go against the requirements.

upvoted 0 times