CDFM Module 3 Exam, Certified Defense Financial Manager, 2026 – Exam Questions with Correct Verified Answers

CDFM - Module 3 Exam questions with
correct answers
What |are |the |three |tests |that |must |be |met |for |use |of |the |Necessary |Expense |doctrine? |- |VERIFIED
|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? |- |VERIFIED |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? |- |VERIFIED |ANSWER✔✔-Multi-year |authority |



(p. |3.1.24)



What |type |of |Congressional |resolution |can |be |thought |of |as |a |temporary |appropriations |act? |-
|VERIFIED |ANSWER✔✔-Continuing |Resolution |(*CR*)



(p. |3.1.41)



What |agency |apportions |funds |for |a |working |capital |fund? |- |VERIFIED |ANSWER✔✔-The |Office |of
|Management |and |Budget |(*OMB*)



(p. |2.1.71)



What |is |the |acronym |for |disbursing |office |identification |numbers? |- |VERIFIED |ANSWER✔✔-Disbursing
|Station |Symbol |Numbers |(*DSSN*) |



(p. |3.2.30)

,What |three |primary |types |of |officials |are |accountable |Individuals |in |the |DoD? |- |VERIFIED
|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? |- |VERIFIED |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? |- |VERIFIED |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? |- |VERIFIED


|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? |- |VERIFIED |ANSWER✔✔-The |"*losing*" |activity |



(the |*OCONUS* |activity) |

(p. |3.2.22)



Name |the |supporting |documents |required |in |the |DoD |Payment |Package? |- |VERIFIED |ANSWER✔✔-
Contract

Invoice

Proof |of |Receipt

Acceptance |Document |

(p. |3.2.24)

,Name |two |key |forms |that |provide |accountability |and |control |by |Disbursing |Officers? |- |VERIFIED
|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? |- |VERIFIED |ANSWER✔✔-Undistributed |Disbursement



(p. |3.3.39)



The |aggregate |amount |of |an |entity's |funds |in |the |Treasury |is |in |what |account? |- |VERIFIED
|ANSWER✔✔-Fund |Balance |with |Treasury



(p. |3.3.39)



Which |three |Federal |agencies |established |the |FASAB? |- |VERIFIED |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? |- |VERIFIED |ANSWER✔✔-The |Government |Management

|Reform |Act |of |1994 |



(p. |3.4.5)



Which |standards |generally |apply |to |all |Federal |Government |audits? |- |VERIFIED |ANSWER✔✔-GAO
|Standards |or |GAGAS



(p. |3.4.10)



How |many |hours |of |continuing |professional |education |must |an |auditor |complete |every |2 |years? |-
|VERIFIED |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? |-
|VERIFIED |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? |- |VERIFIED |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? |- |VERIFIED |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 |benefits; |and

- |The |entity |is |accomplishing |its |mission |in |accordance |with |applicable |laws, |regulations, |and |public
|policies. |- |VERIFIED |ANSWER✔✔-Performance |Audit |



(p. |3.4.22)



What |does |Title |31 |do? |- |VERIFIED |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. |- |VERIFIED


|ANSWER✔✔-Basic |Axiom |of |Fiscal |Law