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GFOA CPFO Exam - Topic 12 Question 18 Discussion

Governments are increasingly using capital lease financing because it:
D) All of these
A) Dose not pledge full-faith-and-credit
B) is not subject to voter approval
C) is usually not subject to a state's Go debt cap

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:

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Suggested Answer: D

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

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Flo
7 months ago
Wow, I didn't realize it wasn't subject to Go debt caps!
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Ernest
7 months ago
C is definitely a factor, but is it really all of them?
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Dana
8 months ago
Not sure about that, seems risky to avoid voter approval.
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Buffy
8 months ago
Totally agree, it's a smart move for governments!
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Veronika
8 months ago
A capital lease doesn't use full-faith-and-credit.
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Ruby
8 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
8 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
8 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
8 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
8 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
8 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
8 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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