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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Reita

13 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.

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Alyssa

14 days ago

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

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Susana

15 days 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*

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Elin

21 days ago

I think the correct answer is D) None of these. The question is asking for the rate structure that is NOT required by GAAP, and all the other options seem to be valid rate structures.

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Donte

2 days ago

I agree, D) None of these seems to be the correct answer.

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Rima

2 months 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

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.

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