CDFM - Certified Defense Financial Manager Accounting and Financial Reporting Questions and Answers

Question 1

A DoD agency incurs a new obligation for a one-year service contract. Which type of accounting entry primarily records the legal commitment of funds against the appropriation?

Accepted Answer

Budgetary

Answer

Proprietary

Answer

Managerial

Answer

Accrual

Question 2

An auditor reviewing a DoD Component's Statement of Budgetary Resources (SBR) would expect to find a reconciliation between which two key financial amounts?

Accepted Answer

Budgetary resources and the status of those resources.

Answer

Net Cost of Operations and the agency's total assets.

Answer

Unexpended appropriations and net position.

Answer

Earned revenue and total program costs.

Question 3

What is the primary purpose of the U.S. Standard General Ledger (USSGL) within the Department of Defense?

Accepted Answer

To provide a uniform chart of accounts and technical guidance for standardized financial reporting.

Answer

To exclusively track the execution of the defense budget, separate from proprietary accounting.

Answer

To mandate the specific accounting software that all DoD components must use.

Answer

To serve as the primary system for processing military and civilian payroll.

Question 4

Under the Federal Managers' Financial Integrity Act (FMFIA), the head of a DoD agency must provide an annual statement of assurance. This assurance primarily addresses the effectiveness of the agency's:

Accepted Answer

Internal controls and financial management systems.

Answer

Weapon system development and acquisition processes.

Answer

Strategic planning and program objective memoranda.

Answer

Cybersecurity protocols and information technology infrastructure.

Question 5

In September, the final month of the fiscal year, a DoD depot completes repairs on a naval vessel. The Navy does not pay the invoice from the depot's working capital fund until October of the next fiscal year. According to the full accrual basis of accounting, in which fiscal year should the Navy recognize the expense for the repairs?

Accepted Answer

The fiscal year the repair work was performed.

Answer

The fiscal year the invoice is paid.

Answer

Spread evenly across both fiscal years.

Answer

The fiscal year the initial work order was funded.

Question 6

Which of the following was a primary driver for the Chief Financial Officers (CFO) Act of 1990, leading to the requirement for federal agencies like the DoD to produce auditable annual financial statements?

Accepted Answer

Concerns about a lack of accountability and reliable financial information for managing federal government operations.

Answer

A desire to provide more funding flexibility to program managers.

Answer

A need to consolidate all federal IT systems into a single platform.

Answer

The requirement to align the federal budget process with the calendar year.