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GFOA CPFO Exam - Topic 3 Question 75 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 75
Topic #: 3

[All CPFO Questions]

An all too familiar axiom is ''either spend it or lose it.'' When an agency under-spends its budget, the governing board is inclined to:

ACheck the reserves for the next time

BCut the next year's budget accordingly

CControl the income and expenditure level

DCall the general public to play their proper role

Show Suggested Answer

Suggested Answer: D

by Roosevelt at Oct 08, 2023, 04:06 PM

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Kiera

10 months ago

I think they should control income and expenditure instead.

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Vivienne

10 months ago

Checking reserves makes sense too, though.

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Malcom

11 months ago

Wait, are they really just going to cut the budget? That seems harsh.

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Jean

11 months ago

Totally agree, it’s all about the bottom line!

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Ashton

11 months ago

They usually cut the next year's budget.

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Cherelle

11 months ago

I vaguely recall something about public involvement, but it doesn't seem directly related to under-spending. D feels off to me.

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Gregg

11 months ago

I practiced a question similar to this, and I think controlling income and expenditure is more about managing the budget rather than responding to under-spending. So, I lean towards B.

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Aimee

12 months ago

I'm not entirely sure, but I feel like checking reserves could be a common response too. A seems plausible.

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Annice

12 months ago

I remember discussing how under-spending can lead to budget cuts in the following year, so I think B might be the right choice.

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Angelyn

12 months ago

Ah, I see what they're getting at. The board would want to check the reserves for the next time, so I'll select A.

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Alida

12 months ago

Okay, let's see. If an agency under-spends its budget, the governing board would likely want to control the income and expenditure level, so I'll go with C.

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Dyan

12 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully before answering.

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Louis

12 months ago

This question seems straightforward, I think the answer is B - cutting the next year's budget accordingly.

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Dana

12 months ago

Okay, let me see... Water, CO2, and Halon are the three that come to mind as being used for these types of fires. I'll double-check my notes to make sure.

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Zachary

1 year ago

Hmm, I'm not too familiar with FTP configuration, but I think the key is to allow anonymous access and make sure the service is persistent across reboots. I'll need to review the steps carefully.

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Luisa

1 year ago

I'll take 'Obvious Traps' for 500, Alex. Seriously, who on earth would choose A?

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Janessa

1 year ago

Arlyne: I see your point, but maybe some agencies prefer to check reserves.

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Kattie

1 year ago

User 3: I agree with Kattie, it seems like the logical choice.

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Arlyne

1 year ago

User 2: Really? I would go with B, cutting the next year's budget.

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Florinda

1 year ago

User 1: I think some agencies might actually choose A.

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Melissia

1 year ago

D? Calling the general public? Good luck with that, they're probably too busy binge-watching cat videos to care about the budget.

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Royal

1 year ago

C) Control the income and expenditure level

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Sommer

1 year ago

B) Cut the next year's budget accordingly

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Clay

1 year ago

A) Check the reserves for the next time

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Darnell

1 year ago

C? Controlling the income and expenditure level? Sounds like a boring accountant's dream. Where's the excitement?

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Yvonne

1 year ago

B? Cutting the budget? That's like punishing the agency for being responsible. What kind of twisted logic is that?

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Francis

1 year ago

C) Control the income and expenditure level

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Scot

1 year ago

B) Cutting the budget seems unfair

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Vonda

1 year ago

A) Check the reserves for the next time

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Herman

1 year ago

I believe they should check the reserves for the next time before making any decisions.

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Nathalie

1 year ago

A? Really? That's just asking for trouble! Might as well light a match and throw it into a pile of cash.

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Tamala

1 year ago

C) Control the income and expenditure level

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Tamala

1 year ago

B) Cut the next year's budget accordingly

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Ula

1 year ago

I agree with Arlene. It's a common practice to adjust budgets based on previous spending.

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Arlene

1 year ago

I think the governing board will cut the next year's budget accordingly.

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