CDFM MODULE 3 EXAM 2026-2027 REAL
EXAM 210 QUESTIONS AND CORRECT
ANSWERS(DETAILED ANSWERS)
What are the three tests that must be met for use of the Necessary Expense doctrine? -
ANSWER Must bear a logical relationship
Not prohibited by law
Not funded elsewhere
(p 3.1.17)
Who grants relief of liability to a certifying officer for erroneous or illegal payments in the
Department of Defense? - ANSWER The Defense Finance and Accounting Service
(*DFAS*)
(p. 3.1.51)
What type of budgetary resources remains available for new obligations for more than
one fiscal year? - ANSWER Multi-year authority
(p. 3.1.24)
What type of Congressional resolution can be thought of as a temporary appropriations
act? - ANSWER Continuing Resolution (*CR*)
(p. 3.1.41)
What agency apportions funds for a working capital fund? - ANSWER The Office of
Management and Budget (*OMB*)
(p. 2.1.71)
What is the acronym for disbursing office identification numbers? - ANSWER Disbursing
Station Symbol Numbers (*DSSN*)
(p. 3.2.30)
What three primary types of officials are accountable Individuals in the DoD? -
ANSWER Certifying Officers (*CO*),
Disbursing Officers (*DO*),
Departmental Accountable Officials (*DAO*)
(p. 2.2.21, 2.2.64)
,What is the normal collection method for debts owed by active military members and
civilian employees who are still in service? - ANSWER Salary Offset garnishing
(p. 3.2.38)
When collecting debts owed by vendors that have failed to properly respond to the
demand letters, what is the next step? - ANSWER Do Not Pay List
(p. 3.2.40)
When in doubt about the proper use of an appropriation, what may the disbursing officer
request form the OSD General Counsel on the propriety of the prospective payment? -
ANSWER An Advance Decision
(p. 3.2.12)
When a civilian employee moves from a job overseas to a job in the states, which
organization pays for the Permanent Duty Travel? - ANSWER The "*losing*" activity
(the *OCONUS* activity)
(p. 3.2.22)
Name the supporting documents required in the DoD Payment Package? - ANSWER
Contract
Invoice
Proof of Receipt
Acceptance Document
(p. 3.2.24)
Name two key forms that provide accountability and control by Disbursing Officers? -
ANSWER Standard Form *1219*, Statement of Accountability (monthly)
DD Form *2657*, Daily Statement of Accountability
(p. 3.2.44)
What term is used to describe Federal Government funds that have been paid but have
not yet been identified to a specific organization? - ANSWER Undistributed
Disbursemen
t
(p. 3.3.39)
The aggregate amount of an entity's funds in the Treasury is in what account? -
ANSWER Fund Balance with Treasury
(p. 3.3.39)
Which three Federal agencies established the FASAB? - ANSWER The Government
Accountability Office (*GAO*),
,the Department of Treasury, and
the Office of Management and Budget (*OMB*)
(p. 3.3.13)
What is the Federal law that specifically required existing CFO agencies to have
financial statements that successfully pass a financial audit? - ANSWER The
Government Management Reform Act of 1994
(p. 3.4.5)
Which standards generally apply to all Federal Government audits? - ANSWER GAO
Standards or GAGAS
(p. 3.4.10)
How many hours of continuing professional education must an auditor complete every 2
years? - ANSWER 80 hours in 2 years
(p. 3.4.14)
What is the minimum number of hours that must be completed in any year of the 2-year
period? - ANSWER 20 hours minimum each year
(p. 3.4.14)
The auditor is restricted access to essential data necessary to satisfy the audit
objective. What type of impairment would this be? - ANSWER External Impairment (p.
3.4.12)
Which type of audit is expected to determine whether:
- The financial information is presented in accordance with established stated criteria;
- The entity has adhered to specific financial compliance requirements; and
- The entity's internal control structure over financial reporting and/or safeguarding of
assets is suitably designed and implemented to achieve the control objective? -
ANSWER Financial Audit
(p. 3.4.22)
Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources economically and
efficiently; - The entity's programs are achieving the desired results or be nefits; and
- The entity is accomplishing its mission in accordance with applicable laws,
regulations, and public policies. - ANSWER Performance Audit
(p. 3.4.22)
What does Title 31 do? - ANSWER Provides statutory authority for the use, control, and
accountability of public funds.
, The established rule is that the expenditure of public funds is proper only when
authorized by Congress, not that public funds may be expended unless prohibited by
Congress. - ANSWER Basic Axiom of Fiscal Law
What are the sources of Fiscal Law? - ANSWER - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
Which part of the constitution empowers the Congress to pass bills for the raising of
revenue, and delineates how bills will pass from the Congress to the President for
signature or veto? - ANSWER Article 1, Section 7
Which part of the constitution empowers Congress to collect taxes? - ANSWER Article
1, Section 8, Clause 1
Which part of the constitution requires appropriations in law before money may be spent
from the Treasury?
The term appropriation applies broadly to any law that permits a Government employee
to spend money, not just to the regular appropriation bill. - ANSWER Article 1, Section 9,
Clause 7
What did the Budget and Accounting Act of *1921* provide? - ANSWER - Required the
President to submit an annual budget to Congress for all three branches of the Federal
Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the Government Accountability
Office)
This law:
- Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are used in all phases
of the budget process
- Establishes the House and Senate Budget committees and the Congressional Budget
Office (CBO) - ANSWER P.L. 93-344 and P.L. 100-119 Congressionl Budget Act of
*1974*
This law prescribes rules and procedures designed to constrain spending and receipts
legislation. - ANSWER P.L. 99-177 Congressional Balanced Budget and Emergency
Deficit Control Act of *1985*
These sections prescribe rules and procedures for budget execution. The overarching
EXAM 210 QUESTIONS AND CORRECT
ANSWERS(DETAILED ANSWERS)
What are the three tests that must be met for use of the Necessary Expense doctrine? -
ANSWER Must bear a logical relationship
Not prohibited by law
Not funded elsewhere
(p 3.1.17)
Who grants relief of liability to a certifying officer for erroneous or illegal payments in the
Department of Defense? - ANSWER The Defense Finance and Accounting Service
(*DFAS*)
(p. 3.1.51)
What type of budgetary resources remains available for new obligations for more than
one fiscal year? - ANSWER Multi-year authority
(p. 3.1.24)
What type of Congressional resolution can be thought of as a temporary appropriations
act? - ANSWER Continuing Resolution (*CR*)
(p. 3.1.41)
What agency apportions funds for a working capital fund? - ANSWER The Office of
Management and Budget (*OMB*)
(p. 2.1.71)
What is the acronym for disbursing office identification numbers? - ANSWER Disbursing
Station Symbol Numbers (*DSSN*)
(p. 3.2.30)
What three primary types of officials are accountable Individuals in the DoD? -
ANSWER Certifying Officers (*CO*),
Disbursing Officers (*DO*),
Departmental Accountable Officials (*DAO*)
(p. 2.2.21, 2.2.64)
,What is the normal collection method for debts owed by active military members and
civilian employees who are still in service? - ANSWER Salary Offset garnishing
(p. 3.2.38)
When collecting debts owed by vendors that have failed to properly respond to the
demand letters, what is the next step? - ANSWER Do Not Pay List
(p. 3.2.40)
When in doubt about the proper use of an appropriation, what may the disbursing officer
request form the OSD General Counsel on the propriety of the prospective payment? -
ANSWER An Advance Decision
(p. 3.2.12)
When a civilian employee moves from a job overseas to a job in the states, which
organization pays for the Permanent Duty Travel? - ANSWER The "*losing*" activity
(the *OCONUS* activity)
(p. 3.2.22)
Name the supporting documents required in the DoD Payment Package? - ANSWER
Contract
Invoice
Proof of Receipt
Acceptance Document
(p. 3.2.24)
Name two key forms that provide accountability and control by Disbursing Officers? -
ANSWER Standard Form *1219*, Statement of Accountability (monthly)
DD Form *2657*, Daily Statement of Accountability
(p. 3.2.44)
What term is used to describe Federal Government funds that have been paid but have
not yet been identified to a specific organization? - ANSWER Undistributed
Disbursemen
t
(p. 3.3.39)
The aggregate amount of an entity's funds in the Treasury is in what account? -
ANSWER Fund Balance with Treasury
(p. 3.3.39)
Which three Federal agencies established the FASAB? - ANSWER The Government
Accountability Office (*GAO*),
,the Department of Treasury, and
the Office of Management and Budget (*OMB*)
(p. 3.3.13)
What is the Federal law that specifically required existing CFO agencies to have
financial statements that successfully pass a financial audit? - ANSWER The
Government Management Reform Act of 1994
(p. 3.4.5)
Which standards generally apply to all Federal Government audits? - ANSWER GAO
Standards or GAGAS
(p. 3.4.10)
How many hours of continuing professional education must an auditor complete every 2
years? - ANSWER 80 hours in 2 years
(p. 3.4.14)
What is the minimum number of hours that must be completed in any year of the 2-year
period? - ANSWER 20 hours minimum each year
(p. 3.4.14)
The auditor is restricted access to essential data necessary to satisfy the audit
objective. What type of impairment would this be? - ANSWER External Impairment (p.
3.4.12)
Which type of audit is expected to determine whether:
- The financial information is presented in accordance with established stated criteria;
- The entity has adhered to specific financial compliance requirements; and
- The entity's internal control structure over financial reporting and/or safeguarding of
assets is suitably designed and implemented to achieve the control objective? -
ANSWER Financial Audit
(p. 3.4.22)
Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources economically and
efficiently; - The entity's programs are achieving the desired results or be nefits; and
- The entity is accomplishing its mission in accordance with applicable laws,
regulations, and public policies. - ANSWER Performance Audit
(p. 3.4.22)
What does Title 31 do? - ANSWER Provides statutory authority for the use, control, and
accountability of public funds.
, The established rule is that the expenditure of public funds is proper only when
authorized by Congress, not that public funds may be expended unless prohibited by
Congress. - ANSWER Basic Axiom of Fiscal Law
What are the sources of Fiscal Law? - ANSWER - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
Which part of the constitution empowers the Congress to pass bills for the raising of
revenue, and delineates how bills will pass from the Congress to the President for
signature or veto? - ANSWER Article 1, Section 7
Which part of the constitution empowers Congress to collect taxes? - ANSWER Article
1, Section 8, Clause 1
Which part of the constitution requires appropriations in law before money may be spent
from the Treasury?
The term appropriation applies broadly to any law that permits a Government employee
to spend money, not just to the regular appropriation bill. - ANSWER Article 1, Section 9,
Clause 7
What did the Budget and Accounting Act of *1921* provide? - ANSWER - Required the
President to submit an annual budget to Congress for all three branches of the Federal
Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the Government Accountability
Office)
This law:
- Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are used in all phases
of the budget process
- Establishes the House and Senate Budget committees and the Congressional Budget
Office (CBO) - ANSWER P.L. 93-344 and P.L. 100-119 Congressionl Budget Act of
*1974*
This law prescribes rules and procedures designed to constrain spending and receipts
legislation. - ANSWER P.L. 99-177 Congressional Balanced Budget and Emergency
Deficit Control Act of *1985*
These sections prescribe rules and procedures for budget execution. The overarching
