CLG 0010 EXAM Q&A | COMPLETE
SOLUTIONS | 2026-2027
Exam
**1. What is defined as any felonious act of corruption or attempt to
cheat the Government or corrupt the Government's agents by charge
card program officials?**
- A) Abuse
- B) Waste
- C) Internal Fraud
- D) Misuse
**Answer: C) Internal Fraud**
*Rationale: Internal fraud involves deception by those with card
program responsibilities, specifically defined as a felonious act that
cheats the government or its agents in the charge card program. This
is distinct from abuse or misuse, which may not involve criminal
intent.*
---
**2. If transactions not made by the Cardholder appear on the
Statement of Account, the Cardholder should dispute them with the
card-issuing bank within how many days of the transaction date?**
,- A) 30 Days
- B) 60 Days
- C) 90 Days
- D) 120 Days
**Answer: C) 90 Days**
*Rationale: Cardholders must dispute unauthorized transactions
appearing on their Statement of Account within 90 days of the
transaction date to ensure timely resolution and limit government
liability.*
---
**3. Which of the following is an agreement that is not binding solely
because the Government representative who made it lacked the
authority to enter into that agreement on behalf of the
government?**
- A) Unauthorized commitment
- B) Micro-purchase
- C) Simplified acquisition
- D) Contract modification
**Answer: A) Unauthorized commitment**
*Rationale: An unauthorized commitment is not binding because the
individual lacked proper authority, regardless of the amount involved.
,It is the lack of authority—not the dollar value—that makes it non-
binding.*
---
**4. How long must Foreign Military Sales documentation be
retained after a case closure?**
- A) 6 Years
- B) 8 Years
- C) 6 Years and 3 Months
- D) 10 Years
**Answer: C) 6 Years and 3 Months**
*Rationale: Per federal records regulations, FMS documentation must
be retained for 6 years and 3 months following case closure to ensure
proper records management and audit readiness.*
---
**5. Splitting an $11,000 purchase into two transactions to stay
under the micro-purchase threshold is:**
- A) Authorized with supervisor approval
- B) Strategic Procurement
- C) Strictly Prohibited
- D) A gray area
, **Answer: C) Strictly Prohibited**
*Rationale: Split purchases are strictly prohibited as they circumvent
internal controls designed to ensure proper oversight of government
purchases. Splitting requirements to avoid card thresholds
constitutes abuse.*
---
**6. Which two must be included in supporting documentation for all
purchase card transactions?**
- A) Receipt and Memo
- B) Receipt and Invoice
- C) Statement and Authorization
- D) None of the above
**Answer: B) Receipt and Invoice**
*Rationale: Both receipts and invoices provide accountability and
verification of transactions. These documents confirm what was
purchased, when, from whom, and at what cost.*
---
**7. Which three are cardholder considerations before a
purchase?**
- A) Obtain Approval
SOLUTIONS | 2026-2027
Exam
**1. What is defined as any felonious act of corruption or attempt to
cheat the Government or corrupt the Government's agents by charge
card program officials?**
- A) Abuse
- B) Waste
- C) Internal Fraud
- D) Misuse
**Answer: C) Internal Fraud**
*Rationale: Internal fraud involves deception by those with card
program responsibilities, specifically defined as a felonious act that
cheats the government or its agents in the charge card program. This
is distinct from abuse or misuse, which may not involve criminal
intent.*
---
**2. If transactions not made by the Cardholder appear on the
Statement of Account, the Cardholder should dispute them with the
card-issuing bank within how many days of the transaction date?**
,- A) 30 Days
- B) 60 Days
- C) 90 Days
- D) 120 Days
**Answer: C) 90 Days**
*Rationale: Cardholders must dispute unauthorized transactions
appearing on their Statement of Account within 90 days of the
transaction date to ensure timely resolution and limit government
liability.*
---
**3. Which of the following is an agreement that is not binding solely
because the Government representative who made it lacked the
authority to enter into that agreement on behalf of the
government?**
- A) Unauthorized commitment
- B) Micro-purchase
- C) Simplified acquisition
- D) Contract modification
**Answer: A) Unauthorized commitment**
*Rationale: An unauthorized commitment is not binding because the
individual lacked proper authority, regardless of the amount involved.
,It is the lack of authority—not the dollar value—that makes it non-
binding.*
---
**4. How long must Foreign Military Sales documentation be
retained after a case closure?**
- A) 6 Years
- B) 8 Years
- C) 6 Years and 3 Months
- D) 10 Years
**Answer: C) 6 Years and 3 Months**
*Rationale: Per federal records regulations, FMS documentation must
be retained for 6 years and 3 months following case closure to ensure
proper records management and audit readiness.*
---
**5. Splitting an $11,000 purchase into two transactions to stay
under the micro-purchase threshold is:**
- A) Authorized with supervisor approval
- B) Strategic Procurement
- C) Strictly Prohibited
- D) A gray area
, **Answer: C) Strictly Prohibited**
*Rationale: Split purchases are strictly prohibited as they circumvent
internal controls designed to ensure proper oversight of government
purchases. Splitting requirements to avoid card thresholds
constitutes abuse.*
---
**6. Which two must be included in supporting documentation for all
purchase card transactions?**
- A) Receipt and Memo
- B) Receipt and Invoice
- C) Statement and Authorization
- D) None of the above
**Answer: B) Receipt and Invoice**
*Rationale: Both receipts and invoices provide accountability and
verification of transactions. These documents confirm what was
purchased, when, from whom, and at what cost.*
---
**7. Which three are cardholder considerations before a
purchase?**
- A) Obtain Approval
