CDFM Accounting and Finance 5

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?

Accepted Answer

Proprietary expense accounts

Answer

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?

Accepted Answer

Obtaining and sustaining clean audit opinions on DoD financial statements

Answer

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?

Accepted Answer

Expense/minor property

Answer

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?

Accepted Answer

Disclosed in notes but not assigned a dollar value on the face of the statements

Answer

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?

Accepted Answer

The amount available in the relevant appropriation or fund account

Answer

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.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Accounting and Finance 5