CDFM Cirtification Exam Module 1
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Under the current Federal budget process, what statement is TRUE about thePresident’s budget?
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The President approves the budget request and, after consultation with Congressional leaders, establishes an appropriate submission date.
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The President approves and budget must be submitted by February 1.
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The President and selected Congressional leaders approve and budget must be submitted by first Monday in February
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The President approves and budget must be submitted by the first Monday in February
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The Government Resource Management Environment is a political process in which each part of the Federal government has an influence on resources eventually passed down to your activity. Also, keep in mind that this section ties directly to the Defense Resource Management Environment of this module. Understand the system and process, and then use this knowledge to benefit your organization. See moreKnowledge of this area will also prepare you for advancement in a financial management career field outside your current specialty.
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- 2.
The Federal Managers’ Financial Integrity Act of 1982 requires the establishmentof internal accounting and administrative controls to ensure that:
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Revenues and expenses are properly recorded
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Funds and property are safeguarded against waste or misuse
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Data are available to produce reliable financial statements
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Managers receive timely and accurate financial information
Correct Answer
A. Funds and property are safeguarded against waste or misuseExplanation
The correct answer is "Funds and property are safeguarded against waste or misuse." The Federal Managers’ Financial Integrity Act of 1982 mandates the implementation of internal controls to ensure that funds and property are protected from being wasted or misused. These controls aim to prevent any unauthorized or inappropriate use of resources and assets. By establishing safeguards, the act aims to promote accountability and integrity in the management of funds and property within federal agencies.Rate this question:
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- 3.
What statement characterizes the authority of the authorizing and appropriatingcommittees of Congress with regard to the defense bills?
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Authorizing committees must adhere to decisions made by the appropriating committees
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Appropriating committees must adhere to decisions made by the authorizing committees
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Appropriating committees generally adhere to decisions made by the authorizing committees unless the appropriate authorization chairperson grants a waiver
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Appropriating committees generally adhere to decisions made by the authorizing committees but are not required to do so
Correct Answer
A. Appropriating committees generally adhere to decisions made by the authorizing committees but are not required to do soExplanation
The statement that best characterizes the authority of the authorizing and appropriating committees of Congress with regard to defense bills is that appropriating committees generally adhere to decisions made by the authorizing committees but are not required to do so. This means that while the appropriating committees typically follow the decisions made by the authorizing committees, they have the flexibility to deviate from those decisions if they deem it necessary or appropriate.Rate this question:
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- 4.
What docuemnt was the precursor to the constitution?
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The Articles of state, ratified in 1781
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The Articles of the New States, ratified in 1781
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The Articles of Confederation, ratified in 1781
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Decleration of Independence
Correct Answer
A. The Articles of Confederation, ratified in 1781Explanation
The correct answer is The Articles of Confederation, ratified in 1781. The Articles of Confederation served as the first constitution of the United States. It was adopted in 1777 and ratified in 1781. It established a weak central government and granted most powers to the individual states. However, it had several flaws and limitations, leading to the need for a stronger and more unified government, which eventually resulted in the drafting of the Constitution.Rate this question:
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- 5.
What is the precursor to the constitution called?
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Articles of Confederation: Ratified: 1788
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Articles of Constituion: Ratified: 1788
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Articles of theb free states: Ratified: 1788
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Articles of Confederation: Ratified: 1781
Correct Answer
A. Articles of Confederation: Ratified: 1781Explanation
The precursor to the constitution is called the Articles of Confederation, which were ratified in 1781.Rate this question:
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- 6.
How many states were required to amend any amendment to the Articles of Confederation?
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Unanimous approval of all the states
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50 % of all the states
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75 % of all the states
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10 % of all the states
Correct Answer
A. Unanimous approval of all the statesExplanation
In order to amend any amendment to the Articles of Confederation, unanimous approval of all the states was required. This means that every single state had to agree to the proposed amendment in order for it to be passed. This high threshold for approval highlights the difficulty in making changes to the Articles of Confederation and the strong emphasis on maintaining the unity and agreement among all the states.Rate this question:
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- 7.
What was the Articles of Confederation particularly concerned about?
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Limiting the pwers of the Federal Government over the states and guranteeing the freedom of each individual citizen.
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Protecting the rights of the colonies
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Guranteeing the freedom of each individual citizen
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Paying less taxes to the British
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Limiting the pwers of the Federal Government over the states
Correct Answer
A. Limiting the pwers of the Federal Government over the states and guranteeing the freedom of each individual citizen.Explanation
The Articles of Confederation were particularly concerned about limiting the powers of the Federal Government over the states and guaranteeing the freedom of each individual citizen. This was because the framers of the Articles wanted to prevent a strong central government from becoming too powerful and infringing on the rights of the states and the people. They believed in a decentralized system where the states retained significant autonomy and individual liberties were protected. This emphasis on limiting federal power and safeguarding individual freedom was a key principle behind the creation of the Articles of Confederation.Rate this question:
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- 8.
The Instructions on Budget Execution can be found in OMB Circular A-34.
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A-34
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A-45
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A-53
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A-315
Correct Answer
A. A-34Explanation
The correct answer is A-34 because OMB Circular A-34 contains the Instructions on Budget Execution. This circular provides guidance and regulations for federal agencies on how to execute their budgets effectively and efficiently. It outlines the procedures and requirements for budget formulation, allocation, and monitoring. By referring to A-34, agencies can ensure compliance with the established budgetary guidelines and achieve proper financial management.Rate this question:
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- 9.
What is the authority provided by Congress in an Appropriations Act
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Budget Authority
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Legal Authority
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Obligation Authority
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Spending Authority
Correct Answer
A. Budget AuthorityExplanation
Budget authority is the authority provided by Congress in an Appropriations Act. This refers to the legal authority given to federal agencies to incur financial obligations for specific purposes. It allows them to spend money from the federal treasury to carry out their programs and activities. Budget authority is a crucial component of the budget process as it determines how much money an agency can spend and for what purposes. It is granted by Congress through the Appropriations Act, which is the legislation that provides funding for government operations.Rate this question:
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- 10.
What is the authority to enter into obligations called?
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Spending Authority
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Obligation Authority
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Budget Authority
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Legal Authority
Correct Answer
A. Budget AuthorityExplanation
Budget authority refers to the legal authority granted to government agencies to enter into financial obligations and spend funds. It allows agencies to allocate and use funds for specific purposes outlined in an approved budget. Budget authority is essential for ensuring that government spending is authorized and controlled, and that agencies can fulfill their financial obligations.Rate this question:
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- 11.
What is the shift from one purpose or activity to another within the different appropriations.
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Reprograming
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Transfer
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Movement
Correct Answer
A. TransferExplanation
The term "transfer" best fits the given description as it refers to the shift from one purpose or activity to another within different appropriations. Reprogramming and movement do not specifically imply a shift from one purpose or activity to another, whereas transfer directly implies this change.Rate this question:
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- 12.
What occurs when a check is issued (or funds are transferred electronically) to a contractor in response to an invoice/payment request for costs incurred, services rendered, products delivered.
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Transfer of funds
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Legal Obligation
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Payment
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Expenditure
Correct Answer
A. ExpenditureExplanation
When a check is issued or funds are transferred electronically to a contractor in response to an invoice/payment request for costs incurred, services rendered, or products delivered, it is considered an expenditure. This means that the company or organization is using its funds to pay for the expenses related to the contractor's work. The payment is made to fulfill a legal obligation and to transfer the funds to the contractor for the services provided.Rate this question:
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- 13.
If Congress and the President do not complete action on all appropriation by 30th of September; what is passed by both houses to avoid a shutdown of government.
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Budget extention
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Suplemental funding
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Aontinuing Resolution Authority (CRA)
Correct Answer
A. Aontinuing Resolution Authority (CRA)Explanation
If Congress and the President do not complete action on all appropriations by September 30th, a Continuing Resolution Authority (CRA) is passed by both houses to avoid a government shutdown. A CRA allows the government to continue funding its operations at the same levels as the previous fiscal year for a specified period of time, typically until a new budget is passed. This temporary measure ensures that essential government functions can continue while negotiations and discussions on the appropriations bills are ongoing.Rate this question:
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- 14.
When Congress is adjourned and President fails to sign a bill in the 10-day period and the bill does not become law, what is it called
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Put aside veto
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Shirt Veto
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Veto
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Pocket Veto
Correct Answer
A. Pocket VetoExplanation
When Congress is adjourned and the President fails to sign a bill within the 10-day period, the bill does not become law. This situation is known as a pocket veto.Rate this question:
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- 15.
In what article of the Constitution is the power to raise taxes found?
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Article I
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Article II
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Article III
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Article IV
Correct Answer
A. Article IExplanation
The power to raise taxes is found in Article I of the Constitution. This article establishes the legislative branch of the government, which includes the power to levy taxes. It outlines the specific powers and responsibilities of Congress, including the ability to impose taxes on individuals and businesses to generate revenue for the federal government. This article also sets forth the process by which tax laws are created and enacted, ensuring that the power to tax is held by the elected representatives of the people.Rate this question:
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- 16.
What CFO Act specified organization and reporting requirements to improve government-wide financial management.
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CFO Act of 1800
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CFO Act of 1995
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CFO Act of 1990
Correct Answer
A. CFO Act of 1990Explanation
The correct answer is CFO Act of 1990. The CFO Act of 1990 specified organization and reporting requirements to improve government-wide financial management. This act was passed by the United States Congress in order to enhance accountability and transparency in financial management within the federal government. It established the position of Chief Financial Officer (CFO) in various government agencies and mandated the development and implementation of financial management systems and practices. The CFO Act of 1990 aimed to ensure that government agencies effectively managed their finances and provided accurate and reliable financial information.Rate this question:
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- 17.
The Executive power shall be vested in in who?
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Concgress
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President of the United States of America
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Senate
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House Speaker
Correct Answer
A. President of the United States of AmericaExplanation
The correct answer is President of the United States of America. According to the Constitution, the executive power is vested in the President. This means that the President is responsible for carrying out and enforcing the laws of the United States. The President is the head of the executive branch and has the authority to make important decisions, such as appointing government officials and negotiating treaties. The President is also the Commander-in-Chief of the armed forces.Rate this question:
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- 18.
The 1990 Budget Enforcement Act divided spending into which two major categories
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Legal and Non Legal
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Mandatory and Discretionary
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CRA and Budget
Correct Answer
A. Mandatory and DiscretionaryExplanation
The correct answer is Mandatory and Discretionary. The 1990 Budget Enforcement Act introduced these two major categories to divide spending. Mandatory spending refers to government expenditures that are required by law, such as entitlement programs like Social Security and Medicare. Discretionary spending, on the other hand, includes government expenditures that are not mandated by law and can be adjusted or allocated based on the government's discretion, such as defense and education funding. This division helps in managing and controlling the federal budget effectively.Rate this question:
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- 19.
How many months out does the Budget formulation phase starts?
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As early as 36 months out
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As early as 24 months out
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As early as 21 months out
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As early as 18 months out
Correct Answer
A. As early as 21 months outExplanation
The budget formulation phase starts as early as 21 months out. This means that the process of creating and planning the budget begins almost two years in advance. Starting this early allows for sufficient time to gather data, analyze financial needs, and make informed decisions about budget allocations. It also allows for adjustments and revisions to be made before the budget is finalized.Rate this question:
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- 20.
The document that preceded the US Constitution and was used as a basis for foundation of the US Government was?
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The Articles of Confederation.
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The declration of States
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Independence document
Correct Answer
A. The Articles of Confederation.Explanation
The correct answer is the Articles of Confederation. The Articles of Confederation was the first constitution of the United States, serving as the basis for the formation of the US government. It was adopted in 1777 and remained in effect from 1781 until the ratification of the US Constitution in 1788. The Articles established a weak central government with limited powers, emphasizing the sovereignty of individual states. However, it soon became clear that the Articles had numerous flaws and were inadequate in effectively governing the country, leading to the need for a stronger federal government, which was addressed in the US Constitution.Rate this question:
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- 21.
Which of the following is NOT a distinct phase of the budget cycle?
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Preparation and submission
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Approval and implementation
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Auditing and evaluation
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Marketing and advertising
Correct Answer
A. Marketing and advertisingExplanation
The budget cycle is a continuous process that guides financial planning and resource allocation. It involves four distinct phases: preparation and submission, approval and implementation, monitoring and execution, and auditing and evaluation. Marketing and advertising are not typically considered separate phases of the budget cycle, but they may be included as budget items within the overall planning process.Rate this question:
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- 22.
What are the four phases of the budget cycle?Formulation, Congressional action, Budget Execution and performance review and Audit
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Formulation, Congressional action, Budget Execution and performance review and Audit
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False
Correct Answer
A. Formulation, Congressional action, Budget Execution and performance review and AuditExplanation
The four phases of the budget cycle are formulation, congressional action, budget execution, and performance review and audit. During the formulation phase, the budget is developed and prepared by the executive branch. Congressional action involves the review and approval of the budget by the legislative branch. Budget execution is the implementation of the budget by the executive branch, while performance review and audit evaluate the effectiveness and efficiency of the budget's implementation.Rate this question:
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- 23.
Budget formulation is the phase in which organizations draft their budgets and each agency consolidates and prepares the budget for the President and Congress
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True
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False
Correct Answer
A. TrueExplanation
Budget formulation is indeed the phase where organizations create and finalize their budgets. During this phase, each agency gathers and combines their budget proposals to prepare a comprehensive budget that will be presented to the President and Congress for approval. Therefore, the statement is correct.Rate this question:
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- 24.
Who drafts the Presidenst's budget message and prepares other parts of the budget?
Correct Answer
OMBExplanation
The Office of Management and Budget (OMB) is responsible for drafting the President's budget message and preparing other parts of the budget. The OMB assists the President in developing and implementing the federal budget, ensuring that it aligns with the administration's policy priorities. They work closely with various federal agencies to gather information and formulate budget proposals, taking into account economic factors, program needs, and policy objectives. The OMB plays a crucial role in the budget process, providing analysis, guidance, and recommendations to the President to help shape the budget priorities of the government.Rate this question:
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WHo Issus the alloawance letter with planning levels for 5 years and policy guidance
Correct Answer
OMBExplanation
The Office of Management and Budget (OMB) is responsible for issuing the allowance letter with planning levels for 5 years and policy guidance. The OMB is an executive branch agency that assists the President in overseeing the implementation of his policies and the management of the federal budget. They play a key role in developing the President's budget proposal and providing guidance to federal agencies on budgetary matters. Therefore, it is the OMB's responsibility to issue the allowance letter and provide policy guidance for a 5-year period.Rate this question:
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Jan 21, 2025Quiz Edited by
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Dec 04, 2009Quiz Created by
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