CDFM Module 3 comprehensive exam
(New 2026/ 2027 Update) Questions &
Answers {Grade A} 100% Correct (Verified
Solutions)
What are the 3 dimensions of the availability of budgetary resources? - Correct answer
Purpose / Time / Amount
Funds may be obligated and expended only for the *purposes* authorized in
appropriations acts or other laws. - Correct answer Purpose
The period of *time* during which budgetary resources may be used incur new
obligations is different from the period of time during which the budgetary resources
may be used to incur expenditures. - Correct answer Time
Obligations and expenditures may not exceed the *amounts* established in law.
Examples are interest on the debt, Federal retirement, social security, and the
judgement fund. - Correct answer Amount
,Appropriations control by purpose are part of what? - Correct answer 31 USC 1301 -
Appropriations shall be applied only to the objects for which the appropriations were
made except as otherwise provided by law.
The various purposes for which funds are authorized are found in general and specific
authorization bills passed by ____ and codified in the statues. - Correct answer
Congress
The _______ authorizes an agency head to recognize superior performance with awards
of cash, time off, or merchandise, and to incur expenses determined necessary to
enhance the recognition of the awardee. - Correct answer Government Employee
Incentive Awards Act
(5 USC 4503)
What are the 3 test for necessary expense doctrine? - Correct answer - Logical
Relationship
- Not Prohibited by Law
- Not Funded for Elsewhere
,Where is the necessary expense doctrine defined? - Correct answer 6 Comp. 619
(March 25, 1927)
Appropriations control by Time are part of what? - Correct answer 31 USC 1502 - The
balance of a fixed-term appropriation is available only for payment of expenses
properly incurred during the period of availability or to complete contracts properly
made within that period.
What are the 2 basic uses of appropriations? - Correct answer Obligations and
Expenditures
___ are legal reservations for which payments, or expenditures, will be made in the
future. - Correct answer Obligations
___ are the cash payments made to liquidate an obligation. - Correct answer
Expenditures
, A violation of the time code will results in? - Correct answer ADA
What is the Bona Fide Needs Rules? - Correct answer a Test to determine when to
obligate and for how much consumption or effort the obligation should cover.
When an agency maintains inventories of commonly used items, does the Bona Fide
Needs Rule prevent maintaining legitimate inventories at reasonable levels? - Correct
answer No
Does the Bona Fide Needs Rules permit an obligation in one fiscal year and delivery in
a subsequent fiscal year even when the production lead-time of the materials requires
obligation in one fiscal year in order for the material to be available for installation in a
later fiscal year. - Correct answer Yes
The bona fide needs occurs in which year (when the order is placed or when the goods
and services are delivered)? - Correct answer When the order is placed
(New 2026/ 2027 Update) Questions &
Answers {Grade A} 100% Correct (Verified
Solutions)
What are the 3 dimensions of the availability of budgetary resources? - Correct answer
Purpose / Time / Amount
Funds may be obligated and expended only for the *purposes* authorized in
appropriations acts or other laws. - Correct answer Purpose
The period of *time* during which budgetary resources may be used incur new
obligations is different from the period of time during which the budgetary resources
may be used to incur expenditures. - Correct answer Time
Obligations and expenditures may not exceed the *amounts* established in law.
Examples are interest on the debt, Federal retirement, social security, and the
judgement fund. - Correct answer Amount
,Appropriations control by purpose are part of what? - Correct answer 31 USC 1301 -
Appropriations shall be applied only to the objects for which the appropriations were
made except as otherwise provided by law.
The various purposes for which funds are authorized are found in general and specific
authorization bills passed by ____ and codified in the statues. - Correct answer
Congress
The _______ authorizes an agency head to recognize superior performance with awards
of cash, time off, or merchandise, and to incur expenses determined necessary to
enhance the recognition of the awardee. - Correct answer Government Employee
Incentive Awards Act
(5 USC 4503)
What are the 3 test for necessary expense doctrine? - Correct answer - Logical
Relationship
- Not Prohibited by Law
- Not Funded for Elsewhere
,Where is the necessary expense doctrine defined? - Correct answer 6 Comp. 619
(March 25, 1927)
Appropriations control by Time are part of what? - Correct answer 31 USC 1502 - The
balance of a fixed-term appropriation is available only for payment of expenses
properly incurred during the period of availability or to complete contracts properly
made within that period.
What are the 2 basic uses of appropriations? - Correct answer Obligations and
Expenditures
___ are legal reservations for which payments, or expenditures, will be made in the
future. - Correct answer Obligations
___ are the cash payments made to liquidate an obligation. - Correct answer
Expenditures
, A violation of the time code will results in? - Correct answer ADA
What is the Bona Fide Needs Rules? - Correct answer a Test to determine when to
obligate and for how much consumption or effort the obligation should cover.
When an agency maintains inventories of commonly used items, does the Bona Fide
Needs Rule prevent maintaining legitimate inventories at reasonable levels? - Correct
answer No
Does the Bona Fide Needs Rules permit an obligation in one fiscal year and delivery in
a subsequent fiscal year even when the production lead-time of the materials requires
obligation in one fiscal year in order for the material to be available for installation in a
later fiscal year. - Correct answer Yes
The bona fide needs occurs in which year (when the order is placed or when the goods
and services are delivered)? - Correct answer When the order is placed
