| Exam Code | CPFO |
| Exam Name | Certified Public Finance Officer Exam |
| Vendor | GFOA |
| Total Questions | 203 |
| Last Updated | 07-Nov, 2026 |
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Free CPFO Practice Questions
Explore 7 free practice questions for the GFOA CPFO exam and review the answers and explanations to support your preparation.
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Question 1
Single answerWhat is the primary purpose of a government budget?
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Option A:Correct
Maximize company profits
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Option B:Correct
Allocate public resources and establish financial priorities
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Option C:Correct
Eliminate all government debt
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Option D:Correct
Increase employee salaries only
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Correct Answer: B
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Question 2
Single answerWhich financial statement reports a government's assets, liabilities, and net position?
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Option A:Correct
Statement of Activities
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Option B:Correct
Balance Sheet
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Option C:Correct
Statement of Cash Flows
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Option D:Correct
Budget Report
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Correct Answer: B
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Question 3
Single answerWhat is the main purpose of debt management?
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Option A:Correct
Increase borrowing every year
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Option B:Correct
Manage borrowing costs and financial risks
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Option C:Correct
Eliminate taxation
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Option D:Correct
Reduce government services
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Correct Answer: B
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Question 4
Single answerWhich investment generally has the lowest credit risk among these options?
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Option A:Correct
Corporate junk bonds
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Option B:Correct
U.S. Treasury securities
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Option C:Correct
Common stocks
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Option D:Correct
Speculative bonds
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Correct Answer: B
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Question 5
Single answerWhat is the primary objective of internal controls?
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Option A:Correct
Prevent and detect errors and fraud
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Option B:Correct
Increase operating expenses
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Option C:Correct
Eliminate financial reporting
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Option D:Correct
Replace external audits
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Correct Answer: A
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Question 6
Single answerWhat is the purpose of competitive procurement?
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Option A:Correct
Guarantee one supplier receives the contract
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Option B:Correct
Promote fairness, competition, and value for money
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Option C:Correct
Avoid documenting purchases
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Option D:Correct
Eliminate vendor evaluation
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Correct Answer: B
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Question 7
Single answerWhat does risk assessment help an organization identify?
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Option A:Correct
Only employee salaries
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Option B:Correct
Potential threats and their likelihood and impact
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Option C:Correct
Only annual revenue
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Option D:Correct
Future tax rates with certainty
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Correct Answer: B
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