CDFM Accounting and Finance 2

Question 1

Under DoD accounting standards, which fund type is used to finance operations that provide goods or services to other government agencies on a cost-reimbursable basis?

Accepted Answer

Revolving Fund

Answer

Revolving funds (working capital funds) finance business-like operations that sell goods or services to other agencies and recover costs through user charges.

Question 2

The Statement of Budgetary Resources (SBR) reports which of the following?

Accepted Answer

Budgetary resources available and their status

Answer

The SBR presents budgetary resources available to an agency and the status of those resources at period end.

Question 3

Which accounting basis does the federal government use for budgetary accounting versus proprietary accounting?

Accepted Answer

Cash for budgetary; accrual for proprietary

Answer

Federal budgetary accounting uses a cash/obligation basis while proprietary (financial) accounting uses the full accrual basis.

Question 4

A DoD component records an expense for a utility bill received but not yet paid. This is an example of which accounting principle?

Accepted Answer

Accrual accounting

Answer

Accrual accounting records expenses when incurred regardless of when cash is paid.

Question 5

What is the primary purpose of subsidiary ledgers in DoD financial management?

Accepted Answer

To provide transaction-level detail supporting general ledger control accounts

Answer

Subsidiary ledgers provide detailed transaction records that support and reconcile to the control account totals in the general ledger.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Accounting and Finance 2