GFOA Exam CPFO Topic 9 Question 112 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 112
Topic #: 9

[All CPFO Questions]

In Government Organizations, a modified approach for depreciation is used. This modified approach expenses maintenance cost and capitalizes additions and improvements, but it does not record depreciation charges. The logic behind the modified approach is:

AThat buildings have an indefinite useful life, making depreciated charges unnecessary.

BChanges in fiduciary assets

CChanges in proprietary fund statement of revenues, expenses, and charges in fund assets.

DAll of these

Show Suggested Answer

Suggested Answer: A

by Mi at Jun 15, 2025, 01:52 AM

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Lina

21 hours ago

I agree with Leontine. Buildings do last a long time, so depreciated charges may not be necessary.

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Leontine

2 days ago

I think the logic behind the modified approach is that buildings have an indefinite useful life.

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