CFCM PRACTICE QUESTIONS LATEST UPDATE WITH
100% SOLVED -GRADED A+ VERIFIED 2025 - 2026
_______________ contracts are characterized by the employer-
employee relationship it creates between the Government and the
contractor's personnel.
a. Personal services
b. Non-personal services
c. Performance Based Services
d. Advisory and Assistance Services - correct answer- A
A cash fund of fixed amount established by an advance of funds, for
disbursement in cash for relatively small amounts is called what?
a. Imprest fund
b. Petty cash
c. Voucher
d. Third-party draft - correct answer- A
A contract for demolition of a public building, without any further
construction work, is subject to which of the following?
a. Both the Service Contract Labor Standards statute and the Wage Rate
Requirements (Construction) statute
b. Only the Wage Rate Requirements (Construction) statute
c. Only the Service Contract Labor Standards statute
,d. Neither the Service Contract Labor Standards statute nor the Wage
Rate Requirements (Construction) statute - correct answer- C
A contract that is awarded using other than sealed bidding procedures is
what?
a. A sole source contract
b. A negotiated contract
c. Always the best value for the Government
d. Not described in the FAR - correct answer- B
A contractor has made an invention under a Federal research and
development contract. In which of the following cases may the
contractor be required to assign title to the invention to the
Government?
a. The contractor does not have a place of business in the United States
b. The contractor is a nonprofit organization
c. The contractor has made all required disclosures to the Government
d. The invention is in support of military operations outside the United
States - correct answer- A
A contractor infringes on a copyright with the authorization of the
Government. What remedy is available to the copyright holder?
a. A suit for monetary damages against the Government in the Court of
Federal Claims
,b. An injunction against the Government, prohibiting use of the
copyrighted material
c. A suit for monetary damages against the contractor in a Federal court
d. No relief is available to the copyright holder - correct answer- A
A contractor receives a refund relating to an allowable cost. What shall
the contractor do with the applicable portion of the refund?
a. The contractor must credit it to the Government as a cost reduction
b. The contractor must refund it to the Government in cash
c. The contractor may credit it to the Government either as a cost
reduction or a cash refund
d. The contractor may apply it to another allowable cost - correct
answer- C
A contractor transfers its right to be paid by the Government for
contract performance to a trust company. What is this called?
a. Novation
b. Refinancing agreement
c. Assignment of a claim
d. Charging off - correct answer- C
A contractor under a construction contract provides the Government
with a quantity of unit-priced items other than the quantity called for.
, Can the Government or the contractor demand an adjustment in the
contract price?
a. Yes, but only if the quantity provided is greater than the expected
quantity
b. Yes, if the variation exceeds plus or minus 15 percent of the expected
quantity
c. Only the Government can demand such an adjustment; the
contractor cannot
d. No, the Government must not accept the items - correct answer-
B
A contractor's arrangement to pay contingent fees for soliciting or
obtaining Government contracts is considered contrary to public policy.
Which of the following statements explains why?
a. Such an arrangement violates the Truthful Cost or Pricing Data statute
b. It indicates a contractor is attempting to use bribery to obtain the
contract
c. Such arrangements may lead to attempted or actual exercise of
improper influence
d. The costs of contingent fees cannot be passed back to the
Government - correct answer- C
A defense subcontractor provides a gift of vehicles to a prime contractor,
and in return the prime contractor awards the subcontractor a valuable
military subcontract. Which of the following is true?
100% SOLVED -GRADED A+ VERIFIED 2025 - 2026
_______________ contracts are characterized by the employer-
employee relationship it creates between the Government and the
contractor's personnel.
a. Personal services
b. Non-personal services
c. Performance Based Services
d. Advisory and Assistance Services - correct answer- A
A cash fund of fixed amount established by an advance of funds, for
disbursement in cash for relatively small amounts is called what?
a. Imprest fund
b. Petty cash
c. Voucher
d. Third-party draft - correct answer- A
A contract for demolition of a public building, without any further
construction work, is subject to which of the following?
a. Both the Service Contract Labor Standards statute and the Wage Rate
Requirements (Construction) statute
b. Only the Wage Rate Requirements (Construction) statute
c. Only the Service Contract Labor Standards statute
,d. Neither the Service Contract Labor Standards statute nor the Wage
Rate Requirements (Construction) statute - correct answer- C
A contract that is awarded using other than sealed bidding procedures is
what?
a. A sole source contract
b. A negotiated contract
c. Always the best value for the Government
d. Not described in the FAR - correct answer- B
A contractor has made an invention under a Federal research and
development contract. In which of the following cases may the
contractor be required to assign title to the invention to the
Government?
a. The contractor does not have a place of business in the United States
b. The contractor is a nonprofit organization
c. The contractor has made all required disclosures to the Government
d. The invention is in support of military operations outside the United
States - correct answer- A
A contractor infringes on a copyright with the authorization of the
Government. What remedy is available to the copyright holder?
a. A suit for monetary damages against the Government in the Court of
Federal Claims
,b. An injunction against the Government, prohibiting use of the
copyrighted material
c. A suit for monetary damages against the contractor in a Federal court
d. No relief is available to the copyright holder - correct answer- A
A contractor receives a refund relating to an allowable cost. What shall
the contractor do with the applicable portion of the refund?
a. The contractor must credit it to the Government as a cost reduction
b. The contractor must refund it to the Government in cash
c. The contractor may credit it to the Government either as a cost
reduction or a cash refund
d. The contractor may apply it to another allowable cost - correct
answer- C
A contractor transfers its right to be paid by the Government for
contract performance to a trust company. What is this called?
a. Novation
b. Refinancing agreement
c. Assignment of a claim
d. Charging off - correct answer- C
A contractor under a construction contract provides the Government
with a quantity of unit-priced items other than the quantity called for.
, Can the Government or the contractor demand an adjustment in the
contract price?
a. Yes, but only if the quantity provided is greater than the expected
quantity
b. Yes, if the variation exceeds plus or minus 15 percent of the expected
quantity
c. Only the Government can demand such an adjustment; the
contractor cannot
d. No, the Government must not accept the items - correct answer-
B
A contractor's arrangement to pay contingent fees for soliciting or
obtaining Government contracts is considered contrary to public policy.
Which of the following statements explains why?
a. Such an arrangement violates the Truthful Cost or Pricing Data statute
b. It indicates a contractor is attempting to use bribery to obtain the
contract
c. Such arrangements may lead to attempted or actual exercise of
improper influence
d. The costs of contingent fees cannot be passed back to the
Government - correct answer- C
A defense subcontractor provides a gift of vehicles to a prime contractor,
and in return the prime contractor awards the subcontractor a valuable
military subcontract. Which of the following is true?
