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

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Rima

2 days ago

I'm not sure, but I think D) None of these makes sense because all the other options are related to rate structures.

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Celestina

4 days 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.

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Tenesha

5 days ago

I disagree, I believe the correct answer is C) Ascending block.

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Clorinda

6 days ago

I think the answer is A) Declining Block and Seasonal Rate.

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