CDFM Cheat Sheet 2026

The 30 highest-yield CDFM facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which financial statement is most critical for assessing the cash position and liquidity of a DoD WCF business area? → Statement of Cash Flows
2. Which DoD instruction primarily governs Working Capital Fund financial management policies? → DoDI 7000.14-R (DoD Financial Management Regulation)
3. What does 'data standardization' mean in the context of DoD financial system modernization? → Establishing common data definitions, formats, and codes across all DoD financial systems
4. Which of the following is a major business area of the Defense-Wide Working Capital Fund? → Defense Finance and Accounting Service (DFAS)
5. What is the primary purpose of conducting a sensitivity analysis in cost estimation? → To identify the most significant cost drivers and assess their impact on total cost
6. What is the primary purpose of the Federal Accounting Standards Advisory Board (FASAB)? → To establish and improve federal financial accounting standards
7. What is the purpose of the DoD's Business Enterprise Architecture (BEA)? → To provide a blueprint for modernizing DoD business systems and processes
8. What is the role of the Treasury's Government-Wide Accounting (GWA) system in DoD financial operations? → It serves as the central reporting hub for federal agency account balances with Treasury
9. Which DoD financial management system replaced STANFINS and serves as the Army's primary general ledger system? → GFEBS
10. In DoD financial systems, what is a 'trading partner' transaction? → An intragovernmental transaction between two federal entities
11. What is the main purpose of the planning, Programming, Budgeting, and Execution (PPBE) process in the Department of Defense? → To integrate strategic planning with resource allocation
12. What is the primary role of the Office of Management and Budget (OMB) in the federal budget process? → To assist the President in preparing the federal budget
13. The Defense Working Capital Fund Budget Submission is submitted as part of which document? → The President's Budget (PB) as a separate volume for WCF business areas
14. What system does the Navy and Marine Corps use as their primary financial and accounting system? → SABRS
15. In the context of the National Defense Strategy, what is meant by "reforming the Department's business practices"? → Implementing more efficient acquisition processes and improving financial management
16. What does the term 'feeder system' mean in the context of DoD financial management? → A subsidiary system that sends transactions into a core accounting system
17. What is an 'efficiency measure' in the context of DoD performance management? → A metric that relates outputs produced to inputs consumed, such as cost per unit of output
18. What is the primary purpose of a Department of Defense Working Capital Fund (WCF)? → To provide a revolving source of financing for goods and services provided to customers
19. Which of the following is emphasized as a critical capability in the National Defense Strategy? → Development of artificial intelligence and autonomous systems
20. How are WCF operating results that generate a 'net operating loss' typically addressed? → They are recovered through rate adjustments in future fiscal years
21. In Earned Value Management, what does a negative Cost Variance (CV) indicate? → The program is over budget relative to work accomplished
22. In DoD financial management, what does the acronym IFMS stand for? → Integrated Financial Management System
23. Which DoD system serves as the authoritative source for civilian pay and human resources data? → DCPDS
24. What is the primary objective of internal controls in federal financial management? → To prevent fraud, waste and abuse
25. When a WCF business area's actual costs exceed its budgeted costs mid-year, the preferred course of action is to: → Absorb the variance and adjust rates in the next budget cycle
26. Which DoD system is used for electronic invoicing and payment processing to support the DoD's financial improvement goals? → WAWF (Wide Area Workflow)
27. What is the primary purpose of the DoD's Standard Line of Accounting (SLOA)? → To provide a uniform accounting classification structure across DoD
28. What is the primary goal of the Program Budget Review (PBR) process in the Department of Defense? → To ensure alignment of budget proposals with strategic priorities
29. How dos the National Defense Strategy propose to strengthen alliances and attract new partners? → By conducting joint military exercises and providing training and equipment support
30. Which report provides a comprehensive overview of an agency's financial position, including assets, liabilities and net position? → Balance Sheet