GFOA Exam CPFO Topic 8 Question 83 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 83
Topic #: 8

[All CPFO Questions]

Small local governments and nonprofits use a third accounting basis, the cash basis, unapproved by GAAP. Cash accounting is used because ____________ accounting, though more accurate, is more complex and costly.

ADeferral

BAccrual

CModified

DBoth B & C

Show Suggested Answer

Suggested Answer: B

by Jennie at Mar 19, 2024, 04:52 PM

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Louann

29 days ago

Deferral, accrual, modified - it's like a linguistic dance party up in here. I'll stick with option B and C, thank you very much.

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Ma

2 days ago

User 1

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Beckie

1 months ago

Modified accounting? Sounds like they're trying to have their cake and eat it too. Why not just go full cash and call it a day?

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Kanisha

19 days ago

It's a balance between accuracy and simplicity for organizations that may not have the resources for full accrual accounting.

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Flo

22 days ago

Using modified accounting can help small local governments and nonprofits have a better understanding of their financial situation without the complexity of full accrual accounting.

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Socorro

27 days ago

Modified accounting allows for some elements of accrual accounting while still keeping things simpler with cash basis.

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Merissa

1 months ago

I'm all about that cash, that cash, no accrual. Seriously, who has time for all that deferral mumbo-jumbo when you're trying to balance the town budget?

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