1. B
The DBS integrates financial, personnel, and logistics data to support better decision making in DoD.
2. B
Obligational authority is the legal power to create obligations using appropriated funds.
3. B
Unobligated balances are funds appropriated but not yet obligated nor expended.
4. C
DoD uses accrual basis accounting, recognizing expenses when incurred, not just when cash changes hands.
5. B
A working capital fund is a revolving fund where operations are financed by revenues collected for goods/services.
6. A
Exceeding statutory budget caps triggers mandatory across‐the‐board sequestration as enforced by law.
7. C
Cost is what is incurred acquiring goods or services; expense is the cost matched in the period in which the benefit is consumed.
8. C
The Statement of Budgetary Resources shows obligations incurred, costs incurred, and resources available.
9. C
Apportionment distributes funds by Treasury to agencies over time or across activities consistent with congressional appropriations.
10. B
The Chief Financial Officers Act of 1990 requires federal agencies, including DoD, to prepare audited financial statements.
11. B
Cost‐benefit analysis compares present value of benefits and costs to inform resource allocation decisions.
12. B
Life‐cycle cost includes acquisition, operation, maintenance, and disposal over full program life.
13. B
The bona fide needs rule prohibits dividing requirements to avoid statutory restrictions.
14. B
DoD may use funds for loans/loan guarantees only when Congress authorizes and appropriates for that purpose.
15. A
The Prompt Payment Act mandates timely vendor payments (usually within 30 days), with penalties for late payments.
16. B
The GAO audits DoD finances and reports to Congress on performance, legality, and effectiveness.
17. B
Budget execution is the phase where appropriated funds are allocated, obligations made, payments processed, performance tracked.
18. C
CAS sets the standards for consistency, allocability, and allowability of costs in government contracting.
19. C
Fund Balance with Treasury is the difference between DoD’s records and Treasury’s records for unobligated or unspent funds.
20. A
The Anti‐Deficiency Act prohibits obligations or expenditures in excess of appropriations or prior to appropriation.
21. A
Reimbursement rate in working capital funds is the price customers pay for goods or services to cover full cost.
22. B
Useful life determines how an asset’s cost is spread via depreciation over the period it provides benefit.
23. B
Performance‐based budgeting ties funding to measurable outcomes to improve accountability and efficiency.
24. A
The Office of the Secretary of Defense (Financial Management & Comptroller) leads the FIAR initiative.
25. B
Expired funds may be used only to liquidate previously incurred obligations, not to incur new obligations.
26. C
Limitations on availability are legislative restrictions on when, where, or for what purpose appropriated funds may be used.
27. B
Asset capitalization requires recording assets that meet cost and useful life thresholds, then depreciating them over time.
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