CDFM Accounting and Finance 3

Question 1

In the DoD Working Capital Fund (WCF) environment, what is the term for the price charged to customers that includes all costs plus any planned surcharge?

Accepted Answer

Stabilized rate

Answer

Standard rate

Answer

Composite rate

Answer

Transfer price

Question 2

Which depreciation method is required by SFFAS No. 6 for most general property, plant, and equipment (PP&E) in the federal government?

Accepted Answer

Straight-line

Answer

Double declining balance

Answer

Sum-of-the-years digits

Answer

Units of production

Question 3

A Defense agency transfers $500,000 of excess equipment to another federal entity at no cost. How should the transferring agency record this transaction?

Accepted Answer

Debit net position; credit equipment at net book value

Answer

Debit expense; credit equipment

Answer

Debit accumulated depreciation; credit equipment

Answer

No entry required

Question 4

Under SFFAS No. 7, which federal entity recognizes revenue when it delivers a good or service and invoices another federal entity?

Accepted Answer

The entity providing the good or service

Answer

The receiving entity

Answer

The appropriating agency

Answer

The Treasury

Question 5

What DoD term describes the process of reducing an obligation when a vendor invoice is less than the original purchase order amount?

Accepted Answer

Deobligation

Answer

Rescission

Answer

Sequestration

Answer

Downward adjustment

Question 6

The Prompt Payment Act requires federal agencies to pay contractor invoices within how many days to avoid interest penalties?

Accepted Answer

30 days

Answer

15 days

Answer

21 days

Answer

45 days

Question 7

Which of the following best describes a 'no-year' appropriation in DoD finance?

Accepted Answer

Funds that remain available until expended without a fixed expiration date

Answer

An appropriation that expires at fiscal year-end

Answer

An emergency supplemental appropriation

Answer

Funds that lapse after two years