GFOA Exam CPFO Topic 9 Question 112 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 112
Topic #: 9

[All CPFO Questions]

In Government Organizations, a modified approach for depreciation is used. This modified approach expenses maintenance cost and capitalizes additions and improvements, but it does not record depreciation charges. The logic behind the modified approach is:

AThat buildings have an indefinite useful life, making depreciated charges unnecessary.

BChanges in fiduciary assets

CChanges in proprietary fund statement of revenues, expenses, and charges in fund assets.

DAll of these

Show Suggested Answer

Suggested Answer: A

by Mi at Jun 15, 2025, 01:52 AM

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Delsie

13 days ago

Hmm, this question is making me hungry. I wonder if the government has a modified approach for depreciating the cafeteria's kitchen equipment. Maybe they just replace it every time someone drops a tray.

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Wynell

2 days ago

A) That buildings have an indefinite useful life, making depreciated charges unnecessary.

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Annelle

19 days ago

I'm going with C. The modified approach is all about managing changes in the proprietary fund statement, which is the key reason for using it in government organizations.

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Lauran

6 days ago

I'm not sure, but I think A could also be a valid reason for using the modified approach.

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Kirk

7 days ago

I agree with you, D seems like the most comprehensive option.

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Rickie

11 days ago

I think D makes the most sense. It covers all the bases.

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Celestine

24 days ago

But what about the other options? Could changes in fiduciary assets or fund statements also play a role in the modified approach?

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Colby

26 days ago

D seems like the correct answer to me. The modified approach is used to account for changes in both fiduciary assets and proprietary fund statements, not just one or the other.

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Rasheeda

3 days ago

Yes, that's right. It's important to consider all aspects when using the modified approach for depreciation in Government Organizations.

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Marleen

8 days ago

I agree, D does seem like the correct answer. The modified approach covers all the changes in both fiduciary assets and proprietary fund statements.

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Xochitl

29 days ago

I think the answer is A. Government buildings have an indefinite useful life, so depreciation charges are not necessary. It's a simple and logical explanation.

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