Free CDFM Accounting and Finance Questions and Answers

Question 1

What is the primary purpose of the Federal Accounting Standards Advisory Board (FASAB)?

Accepted Answer

To establish and improve federal financial accounting standards

Answer

To oversee the financial audits of federal agencies

Answer

To manage the allocation of feral budgetary resources

Answer

To ensure compliance with federal procurement regulations

Question 2

Which report provides a comprehensive overview of an agency's financial position, including assets, liabilities and net position?

Accepted Answer

Balance Sheet

Answer

Statement of Budgetary Resources (SBR)

Answer

Statement of Net Cost (SNC)

Answer

Statement of Changes in Net Position

Question 3

What is the primary objective of internal controls in federal financial management?

Accepted Answer

To prevent fraud, waste and abuse

Answer

To maximize the efficiency of financial transactions

Answer

To ensure timely reporting of financial data

Answer

To standardized accounting practices across all federal agencies

Question 4

Which of the following is considered a corrective internal control?

Accepted Answer

Regular reconciliation of accounts

Answer

Pre-authorization of expenditures

Answer

Segregation of duties

Answer

Independent financial audits

Question 5

What is the purpose of the Anti-Deficiency Act?

Accepted Answer

To ensure federal agencies do not spend more than their appropriations

Answer

To provide guidelines for federal procurement processes

Answer

To establish standards for federal financial reporting

Answer

To oversee the allocation of budgetary resources