Practice Test Geeks(CRA) Certified Research Administrator Practice Test
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Financial Management & Budgeting Flashcards

7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Budgeting flashcards as text

  1. A research administrator discovers $5,000 was erroneously charged to the wrong grant. What is the correct course of action?

    Answer: Process a cost transfer with appropriate documentation and justification within a timely period

    Cost transfers must be processed promptly, documented with a clear business reason, and require appropriate approvals to correct erroneous charges.

  2. Under OMB Uniform Guidance, what is the threshold for equipment requiring special tracking and management procedures?

    Answer: $5,000

    Under 2 CFR 200.1, equipment is defined as tangible personal property with a useful life of more than one year and a per-unit acquisition cost of $5,000 or more.

  3. What is 'program income' in the context of federal grants?

    Answer: Gross income earned by the grantee that is directly generated by or earned as a result of the federal award

    Program income is gross income directly generated by or earned as a result of activities supported by a federal award during the project period.

  4. Which method of allocating indirect costs uses a base that excludes equipment, capital expenditures, and subcontract amounts exceeding $25,000?

    Answer: Modified Total Direct Costs (MTDC)

    MTDC (Modified Total Direct Costs) excludes equipment, capital expenditures, patient care costs, tuition remission, and subcontract amounts above $25,000.

  5. An award is about to close and has $3,000 remaining. The PI wants to purchase supplies that were not in the original scope. What is the most appropriate course of action?

    Answer: Verify the supplies are within scope; if not, return the funds or consult the sponsor

    Remaining funds must be spent only on allowable, allocable costs within the approved scope of work; spending outside scope is improper regardless of fund availability.

  6. What is the significance of the 'period of performance' on a federal grant?

    Answer: It defines the time frame during which project activities may be conducted and costs may be incurred

    The period of performance defines the authorized timeframe for conducting project activities and incurring allowable costs against the award.

  7. A cost is considered 'reasonable' under Uniform Guidance if:

    Answer: It reflects what a prudent person would pay for similar goods or services under similar circumstances

    The 'reasonable' standard applies the 'prudent person' test — whether the cost would be recognized as ordinary and necessary by a sound business decision-maker.