CDFM Accounting and Finance 5 — Questions and Answers
Question 1: When performing a crosswalk from the DoD trial balance to the financial statements, which account type appears on both the Balance Sheet and the Statement of Net Cost?
- Budgetary accounts
- Proprietary expense accounts (Correct answer)
- Memorandum accounts
- No accounts appear on both statements
Correct answer: Proprietary expense accounts
Proprietary expense accounts feed the Statement of Net Cost, and any unpaid accrued liabilities for those expenses appear on the Balance Sheet.
Question 2: The DoD Financial Improvement and Audit Remediation (FIAR) Plan focuses primarily on achieving which goal?
- Reducing the defense budget deficit
- Obtaining and sustaining clean audit opinions on DoD financial statements (Correct answer)
- Automating the payroll system
- Consolidating financial management systems into one platform
Correct answer: Obtaining and sustaining clean audit opinions on DoD financial statements
FIAR guides DoD's efforts to achieve full financial statement auditability and sustain clean (unmodified) audit opinions.
Question 3: Which category of DoD property is defined as items with a unit acquisition cost below the capitalization threshold that are tracked for accountability but not depreciated?
- Real property
- Capitalized personal property
- Expense/minor property (Correct answer)
- Heritage assets
Correct answer: Expense/minor property
Items below the capitalization threshold (typically $250,000 for most DoD components) are expensed when acquired and may be tracked as minor property for accountability.
Question 4: Under GAAP for federal entities, how are Heritage Assets (e.g., monuments, historical buildings) reported on the Balance Sheet?
- At current market value
- At historical acquisition cost and depreciated
- Disclosed in notes but not assigned a dollar value on the face of the statements (Correct answer)
- As intangible assets at fair value
Correct answer: Disclosed in notes but not assigned a dollar value on the face of the statements
Heritage assets are disclosed in the notes to the financial statements but are not assigned a dollar value on the face of the Balance Sheet.
Question 5: An antideficiency violation occurs when an officer makes or authorizes an expenditure that exceeds which of the following?
- The agency's annual revenue
- The amount available in the relevant appropriation or fund account (Correct answer)
- The agency's total debt limit
- The OMB apportionment ceiling only
Correct answer: The amount available in the relevant appropriation or fund account
The Antideficiency Act prohibits incurring obligations or expenditures in excess of the amounts available in an appropriation or fund, as well as without proper apportionment.
Question 6: In the context of the DoD's enterprise resource planning (ERP) systems, what is the primary financial management benefit of a fully integrated ERP?
- Eliminating the need for external auditors
- Providing a single source of truth that links budget execution, procurement, and general ledger data (Correct answer)
- Automating congressional budget submissions
- Replacing the need for internal controls
Correct answer: Providing a single source of truth that links budget execution, procurement, and general ledger data
An integrated ERP links financial transactions across budget, procurement, and accounting modules, reducing reconciliation errors and improving auditability.
Question 7: Which DoD financial management regulation (DoD FMR) volume specifically covers the accounting policy and procedures for the General Fund?
- Volume 1
- Volume 4 (Correct answer)
- Volume 6B
- Volume 11A
Correct answer: Volume 4
DoD FMR Volume 4 covers accounting policy for the General Fund, including guidance on recording proprietary and budgetary transactions.
CDFM Accounting and Finance 5
When performing a crosswalk from the DoD trial balance to the financial statements, which account type appears on both the Balance Sheet and the Statement of Net Cost?