GFOA CPFO Exam - Topic 12 Question 18 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 18
Topic #: 12

[All CPFO Questions]

Governments are increasingly using capital lease financing because it:

ADose not pledge full-faith-and-credit

Bis not subject to voter approval

Cis usually not subject to a state's Go debt cap

DAll of these

Show Suggested Answer

Suggested Answer: D

by Paris at May 06, 2022, 02:24 AM

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Flo

4 months ago

Wow, I didn't realize it wasn't subject to Go debt caps!

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Ernest

4 months ago

C is definitely a factor, but is it really all of them?

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Dana

5 months ago

Not sure about that, seems risky to avoid voter approval.

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Buffy

5 months ago

Totally agree, it's a smart move for governments!

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Veronika

5 months ago

A capital lease doesn't use full-faith-and-credit.

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Ruby

5 months ago

I feel like I read somewhere that capital leases help bypass state debt caps, but I can't recall the details.

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Osvaldo

5 months ago

I remember practicing a question similar to this, and I think the key reason is that it avoids voter approval.

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Winifred

5 months ago

I think capital lease financing is appealing because it doesn't require full-faith-and-credit, but I'm not entirely sure about the other options.

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Ressie

5 months ago

I’m leaning towards option D, thinking that all these reasons contribute to why governments prefer capital leases.

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Floyd

5 months ago

This looks like a straightforward allocation question. I'll need to carefully analyze the information provided and determine the appropriate split between sales and accounting departments.

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Maurine

5 months ago

If there are no access details specified, I'm guessing that means the knowledge base is open to all users. Option C looks like the best choice here.

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Audra

5 months ago

I'm pretty sure it's A - one editable template with a text component. Since all pages will look similar, we just need a single base template that can be easily edited.

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