Practice Test GeeksCDFM - Certified Defense Financial Manager Practice Test
← All CDFM Flashcard Decks

Fiscal Law Principles Flashcards

7 cards from real CDFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Fiscal Law Principles flashcards as text

  1. Under the Antideficiency Act, which action is PROHIBITED when an appropriation is exhausted?

    Answer: Continuing to obligate funds beyond the appropriated amount

    The Antideficiency Act (31 U.S.C. § 1341) prohibits incurring obligations or expenditures in excess of amounts available in an appropriation.

  2. Which doctrine governs whether a particular expenditure is a proper charge against a specific appropriation?

    Answer: Necessary Expense Doctrine

    The Necessary Expense Doctrine (3-part test) determines whether an expenditure is a proper use of a given appropriation by evaluating purpose, time, and amount.

  3. A DoD agency uses O&M funds to purchase furniture worth $45,000 for a new administrative office. This likely violates which fiscal law principle?

    Answer: The threshold for investment items requiring procurement appropriations

    Items with a unit cost at or above the investment threshold ($250,000 for most DoD items) must be funded with procurement appropriations, not O&M.

  4. What is the primary legal authority that prohibits federal agencies from spending money for purposes not authorized by Congress?

    Answer: 31 U.S.C. § 1301 (Purpose Statute)

    31 U.S.C. § 1301 states that appropriations shall be applied only to the objects for which they were made.

  5. A contracting officer signs a contract in September of FY2026 for services to be delivered entirely in FY2027. Which rule is most likely violated?

    Answer: Bona Fide Needs Rule, because the need does not exist in the current fiscal year

    The Bona Fide Needs Rule (31 U.S.C. § 1502) requires that an appropriation only be used for the genuine needs of the fiscal year for which it was appropriated.

  6. Which of the following correctly describes a 'no-year' appropriation?

    Answer: Funds remain available for obligation without any fiscal year expiration

    No-year appropriations (marked with an 'X' in the appropriation symbol) remain available for obligation until the purpose is accomplished or Congress rescinds the authority.

  7. An Antideficiency Act violation must be reported to which entities?

    Answer: The President and Congress

    31 U.S.C. § 1351 requires ADA violations to be reported immediately to the President and Congress, and the agency head must also report to OMB.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. sdfm.org — Score validity, exam format, retake fee, test dates, time limit, fees, eligibility, test delivery · verified Oct 2026