CDFM All Modules FISCAL LAW EXAMS/ Questions with
Correct Verified Answers/ Graded A+
1. The two provisions of the U.S. Constitution that provide the
underpinning for the budget process are:
A) Article 1 Section 8 clause 1 and Article 1 Section 9 clause 7
B) Article 2 Section 8 and Article 2 Section 9
C) Article 1 Section 9 and Article 2 Section 1
D) The First and Tenth Amendments
Correct Answer: A
Rationale: Article 1 Section 8 clause 1 empowers Congress to
collect taxes, and Article 1 Section 9 clause 7 requires
appropriations in law before money can be spent from the
Treasury.
2. True or False: Article 2 Section 8 empowers Congress to collect
taxes, and Section 9 requires appropriations in law before
1
,money can be spent from the Treasury.
A) True
B) False
Correct Answer: B
Rationale: This statement is false because it incorrectly identifies
the constitutional provisions. Article 1 Section 8 empowers
Congress to collect taxes, and Article 1 Section 9 requires
appropriations in law before money can be spent from the
Treasury.
3. What is the basic axiom of Fiscal Law established in U.S. v.
McCollum (1976)?
A) Public funds may be expended unless prohibited by Congress
B) Expenditure of public funds is proper only when authorized by
Congress
C) Agencies may spend funds at their discretion
D) Congress must pre-approve all expenditures
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,Correct Answer: B
Rationale: The established rule from U.S. v. McCollum 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.
4. The Anti-Deficiency Act is codified in which U.S. Code sections?
A) 31 USC 1341, 1342, and 1517
B) 31 USC 1501, 1502, and 1503
C) 10 USC 1341, 1342, and 1517
D) 31 USC 1301, 1302, and 1303
Correct Answer: A
Rationale: The Anti-Deficiency Act consists of 31 USC 1341,
1342, and 1517. These statutes prohibit making or authorizing
obligations in excess of available appropriations, accepting
voluntary services, and over-obligating apportionments.
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, 5. Which U.S. Code section addresses the prohibition against
over-obligating appropriations or funds?
A) 31 USC 1341(a)
B) 31 USC 1342
C) 31 USC 1517
D) 31 USC 1501
Correct Answer: A
Rationale: 31 USC 1341(a) prohibits the over-obligation of an
appropriation or funds and obligations or contracts in advance
of an appropriation.
6. Which U.S. Code section addresses the prohibition against
accepting voluntary services?
A) 31 USC 1341
B) 31 USC 1342
C) 31 USC 1517
D) 31 USC 1501
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Correct Verified Answers/ Graded A+
1. The two provisions of the U.S. Constitution that provide the
underpinning for the budget process are:
A) Article 1 Section 8 clause 1 and Article 1 Section 9 clause 7
B) Article 2 Section 8 and Article 2 Section 9
C) Article 1 Section 9 and Article 2 Section 1
D) The First and Tenth Amendments
Correct Answer: A
Rationale: Article 1 Section 8 clause 1 empowers Congress to
collect taxes, and Article 1 Section 9 clause 7 requires
appropriations in law before money can be spent from the
Treasury.
2. True or False: Article 2 Section 8 empowers Congress to collect
taxes, and Section 9 requires appropriations in law before
1
,money can be spent from the Treasury.
A) True
B) False
Correct Answer: B
Rationale: This statement is false because it incorrectly identifies
the constitutional provisions. Article 1 Section 8 empowers
Congress to collect taxes, and Article 1 Section 9 requires
appropriations in law before money can be spent from the
Treasury.
3. What is the basic axiom of Fiscal Law established in U.S. v.
McCollum (1976)?
A) Public funds may be expended unless prohibited by Congress
B) Expenditure of public funds is proper only when authorized by
Congress
C) Agencies may spend funds at their discretion
D) Congress must pre-approve all expenditures
2
,Correct Answer: B
Rationale: The established rule from U.S. v. McCollum 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.
4. The Anti-Deficiency Act is codified in which U.S. Code sections?
A) 31 USC 1341, 1342, and 1517
B) 31 USC 1501, 1502, and 1503
C) 10 USC 1341, 1342, and 1517
D) 31 USC 1301, 1302, and 1303
Correct Answer: A
Rationale: The Anti-Deficiency Act consists of 31 USC 1341,
1342, and 1517. These statutes prohibit making or authorizing
obligations in excess of available appropriations, accepting
voluntary services, and over-obligating apportionments.
3
, 5. Which U.S. Code section addresses the prohibition against
over-obligating appropriations or funds?
A) 31 USC 1341(a)
B) 31 USC 1342
C) 31 USC 1517
D) 31 USC 1501
Correct Answer: A
Rationale: 31 USC 1341(a) prohibits the over-obligation of an
appropriation or funds and obligations or contracts in advance
of an appropriation.
6. Which U.S. Code section addresses the prohibition against
accepting voluntary services?
A) 31 USC 1341
B) 31 USC 1342
C) 31 USC 1517
D) 31 USC 1501
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