CPCM LATEST 2026 CORE EXAM TEST QUESTIONS AND
ANSWERS GRADED A+
✔✔Resisting Forces to Competence - ✔✔Ineffective Delegation, Unproductive Habits,
Overreliance, Poor Time Management
✔✔Resisting Forces of Integrity - ✔✔Cutting Corners, Lack of Trust, Abuse of Power
✔✔Resisting Forces of Decisiveness - ✔✔Inhibitors, Outdates Priorities, Too Decisive,
To Indecisive, Unknown Priorities
✔✔Resisting Forces to Optimism - ✔✔Chaos, False Praise, Uncertainty, Undermining
Others, Inflexible Work Style
✔✔Resisting Forces to Collaboration - ✔✔Avoiding Confrontation, Forced Consensus,
Lack of Accountability
✔✔Resisting Forces to Vision - ✔✔Poor Communication, Destructive Organizational
Leadership, Living in the Past, Loss of the Big Picture
✔✔Accounting - ✔✔The way an organization collects, organizes, and records financial
information for making management decisions; the way to report a company's
transactions and to maintain accountability for its assets and liabilities
✔✔Accounting system - ✔✔A formal communications network that supplies relevant
information for planning, control, decision-making, and evaluation
✔✔Acid test ratio - ✔✔The ratio determining how well the company's current liabilities
can be satisfied by its current assets less inventory
✔✔Activity-based costing system - ✔✔An accounting system focused on a production
cycle and based on the principles that an output needs activities to produce it and that
those activities use certain resources; assigns costs through cost drivers that the
activities use to create the outputs
✔✔Administrative lead time - ✔✔A measurement used by some organizations of how
long it takes to award a contract, starting when a procurement request is received and
ending when the contract is awarded
✔✔Asset - ✔✔Something a company owns that has value and that can be sold or used
by the company to make products or provide services that can be sold
✔✔Balance sheet - ✔✔Provides detailed information about a company's assets,
liabilities, and shareholder equity
,✔✔Bottom line - ✔✔A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income
✔✔Burn rate - ✔✔An average of the estimated costs per month, often based on staffing
estimates, used for estimating funding requirements; Also fails to consider project
Phases, or the potential for programs to ramp-up activity at beginning and end of
projects
✔✔Cash flow statement - ✔✔A statement reporting a company's inflow and outflow of
cash; generally includes operating activities, investing activities, and financing activities
✔✔Competition - ✔✔The effort or action of two or more commercial companies to
obtain the same business from a third party
✔✔Contingency planning - ✔✔Involves "what if?" analysis to look at various situations if
certain environmental or economic conditions change
✔✔Controlling - ✔✔Monitoring and evaluating how well the team and organizational
objectives are pursued and accomplished
✔✔Current Assets - ✔✔assets which can be converted into cash within one year;
current liabilities are obligations that a business must pay within one year
✔✔Current ratio - ✔✔The ratio of current assets divided by current liabilities, want to be
over 1
✔✔Debt-to-equity ratio - ✔✔The ratio measuring the relation of debt divided by
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers behave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital, goods, and natural resources
✔✔Electronic government (e-government) - ✔✔The use by the government of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
, ✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A web-based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; nonregulatory guidance developed and used by
certified public accountants
✔✔Gross profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
✔✔Long-term Assets - ✔✔assets that a business cannot easily turn into cash and that
are not used within one year; long-term liabilities are liabilities that will mature over one
year from the balance sheet date
ANSWERS GRADED A+
✔✔Resisting Forces to Competence - ✔✔Ineffective Delegation, Unproductive Habits,
Overreliance, Poor Time Management
✔✔Resisting Forces of Integrity - ✔✔Cutting Corners, Lack of Trust, Abuse of Power
✔✔Resisting Forces of Decisiveness - ✔✔Inhibitors, Outdates Priorities, Too Decisive,
To Indecisive, Unknown Priorities
✔✔Resisting Forces to Optimism - ✔✔Chaos, False Praise, Uncertainty, Undermining
Others, Inflexible Work Style
✔✔Resisting Forces to Collaboration - ✔✔Avoiding Confrontation, Forced Consensus,
Lack of Accountability
✔✔Resisting Forces to Vision - ✔✔Poor Communication, Destructive Organizational
Leadership, Living in the Past, Loss of the Big Picture
✔✔Accounting - ✔✔The way an organization collects, organizes, and records financial
information for making management decisions; the way to report a company's
transactions and to maintain accountability for its assets and liabilities
✔✔Accounting system - ✔✔A formal communications network that supplies relevant
information for planning, control, decision-making, and evaluation
✔✔Acid test ratio - ✔✔The ratio determining how well the company's current liabilities
can be satisfied by its current assets less inventory
✔✔Activity-based costing system - ✔✔An accounting system focused on a production
cycle and based on the principles that an output needs activities to produce it and that
those activities use certain resources; assigns costs through cost drivers that the
activities use to create the outputs
✔✔Administrative lead time - ✔✔A measurement used by some organizations of how
long it takes to award a contract, starting when a procurement request is received and
ending when the contract is awarded
✔✔Asset - ✔✔Something a company owns that has value and that can be sold or used
by the company to make products or provide services that can be sold
✔✔Balance sheet - ✔✔Provides detailed information about a company's assets,
liabilities, and shareholder equity
,✔✔Bottom line - ✔✔A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income
✔✔Burn rate - ✔✔An average of the estimated costs per month, often based on staffing
estimates, used for estimating funding requirements; Also fails to consider project
Phases, or the potential for programs to ramp-up activity at beginning and end of
projects
✔✔Cash flow statement - ✔✔A statement reporting a company's inflow and outflow of
cash; generally includes operating activities, investing activities, and financing activities
✔✔Competition - ✔✔The effort or action of two or more commercial companies to
obtain the same business from a third party
✔✔Contingency planning - ✔✔Involves "what if?" analysis to look at various situations if
certain environmental or economic conditions change
✔✔Controlling - ✔✔Monitoring and evaluating how well the team and organizational
objectives are pursued and accomplished
✔✔Current Assets - ✔✔assets which can be converted into cash within one year;
current liabilities are obligations that a business must pay within one year
✔✔Current ratio - ✔✔The ratio of current assets divided by current liabilities, want to be
over 1
✔✔Debt-to-equity ratio - ✔✔The ratio measuring the relation of debt divided by
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers behave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital, goods, and natural resources
✔✔Electronic government (e-government) - ✔✔The use by the government of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
, ✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A web-based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; nonregulatory guidance developed and used by
certified public accountants
✔✔Gross profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
✔✔Long-term Assets - ✔✔assets that a business cannot easily turn into cash and that
are not used within one year; long-term liabilities are liabilities that will mature over one
year from the balance sheet date
