100+ Free CDFM Module 3 Practice Questions

Pass your CDFM Module 3 — Accounting & Finance exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

Not publicly disclosed Pass Rate

100+ Questions

100% Free

1 / 100

Question 1

Score: 0/0

Which Treasury rate is generally NOT used to compute Prompt Payment Act interest?

Constant Maturity Treasury (CMT) 10-year yield

Treasury's Bureau of the Fiscal Service PPA rate

Published Federal Register rate for January 1 and July 1

Prompt Payment Act / Contract Disputes Act semiannual rate

to track

Same family resources

Explore More SDFM Defense Financial Management

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

2026 Statistics

Key Facts: CDFM Module 3 Exam

Multiple-Choice Questions

SDFM CDFM Candidate Handbook v25.05

2 hours

Exam Time Limit

SDFM CDFM Candidate Handbook

$119

Exam Fee per Module

SDFM fee schedule (2026)

4 years

Window to Complete Modules 1-3

SDFM CDFM Candidate Handbook

31.2%

Largest Domain (Fiscal Law)

CDFM Exam Blueprints (effective 9/1/2018)

25.4%

Auditing Weight

CDFM Exam Blueprints

CDFM Module 3 is an 80-question, 2-hour computer-based exam delivered through Pearson VUE at a test center or via OnVUE online proctoring. Each module costs $119; the full CDFM is $406 for SDFM members ($446 for non-members) including the application fee. Modules 1-3 must be completed within a 4-year window. Module 3 covers Accounting (25.3%), Finance (18.1%), Auditing (25.4%), and Fiscal Law (31.2%) per the SDFM CDFM Exam Blueprint (effective September 1, 2018, still current per the v25.05 Candidate Handbook).

Sample CDFM Module 3 Practice Questions

Try these sample questions to test your CDFM Module 3 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which organization issues federal accounting standards (SFFAS) recognized as GAAP for U.S. federal entities?

A.Federal Accounting Standards Advisory Board (FASAB)

B.Financial Accounting Standards Board (FASB)

C.Governmental Accounting Standards Board (GASB)

D.Government Accountability Office (GAO)

Explanation: FASAB issues Statements of Federal Financial Accounting Standards (SFFAS), recognized as GAAP for federal reporting entities under AICPA Rule 203 since 1999. FASB sets GAAP for private-sector entities and GASB for state and local governments.

2Which law established the position of CFO in 24 major federal agencies and required audited financial statements?

A.Chief Financial Officers (CFO) Act of 1990

B.Federal Managers' Financial Integrity Act of 1982

C.Government Performance and Results Act of 1993

D.Sarbanes-Oxley Act of 2002

Explanation: The CFO Act of 1990 created CFOs at 24 major agencies and the OMB Deputy Director for Management, mandating audited agency financial statements. The Government Management Reform Act of 1994 later extended that audit requirement government-wide.

3Which authority requires federal agencies to maintain accounts and prepare reports using the United States Standard General Ledger (USSGL)?

A.Treasury Financial Manual (TFM), Supplement S2

B.OMB Circular A-11

C.DoD FMR Volume 4

D.GAO Green Book

Explanation: Treasury issues and maintains the USSGL through the Treasury Financial Manual Supplement S2. Federal agencies must record budgetary and proprietary transactions consistent with the USSGL chart of accounts.

4Which federal financial statement reports an agency's gross cost of operations less earned revenue, by responsibility segment?

A.Statement of Net Cost

B.Balance Sheet

C.Statement of Changes in Net Position

D.Statement of Budgetary Resources

Explanation: The Statement of Net Cost reports gross costs of operations less earned revenue, presented by responsibility segment, to show the net cost of providing federal programs. The SBR reports budgetary inflows and outflows on a budgetary basis.

5Under the Prompt Payment Act, what is the standard payment due date for a properly submitted invoice when no other date is specified by contract?

A.30 days after receipt of a proper invoice

B.15 days after receipt of a proper invoice

C.45 days after receipt of a proper invoice

D.60 days after receipt of a proper invoice

Explanation: 5 CFR 1315.4(g) sets the default Prompt Payment due date at 30 days after the latest of receipt of a proper invoice, acceptance of goods or services, or contractual payment date. Meat, perishable agricultural commodities, and dairy items have shorter statutory cycles.

6Which act significantly strengthened federal debt collection tools, including mandatory referral of delinquent non-tax debt to Treasury for cross-servicing?

A.Debt Collection Improvement Act (DCIA) of 1996

B.Federal Claims Collection Act of 1966

C.Anti-Deficiency Act

D.Treasury Offset Program Act of 2010

Explanation: The DCIA of 1996 requires agencies to refer eligible non-tax debt over 120 days delinquent to Treasury for cross-servicing and to the Treasury Offset Program. It also authorizes administrative wage garnishment.

7Which OMB circular establishes management's responsibility for internal control over operations, reporting, and compliance?

A.OMB Circular A-123

B.OMB Circular A-11

C.OMB Circular A-130

D.OMB Circular A-133

Explanation: OMB Circular A-123, 'Management's Responsibility for Enterprise Risk Management and Internal Control,' implements FMFIA and aligns federal internal control with the GAO Green Book and COSO framework.

8Which document is known as the Yellow Book and establishes standards for federal government audits?

A.Generally Accepted Government Auditing Standards (GAGAS)

B.Standards for Internal Control in the Federal Government (Green Book)

C.Statements on Auditing Standards (SAS)

D.International Standards on Auditing (ISA)

Explanation: GAGAS, published by the GAO, is the Yellow Book and governs financial, attestation, and performance audits of federal programs. The Green Book covers internal control standards, not audit standards.

9Which DoD organization is the primary provider of finance and accounting services to the Department of Defense?

A.Defense Finance and Accounting Service (DFAS)

B.Defense Logistics Agency (DLA)

C.Office of the Under Secretary of Defense (Comptroller)

D.Defense Contract Audit Agency (DCAA)

Explanation: DFAS pays DoD's military and civilian personnel, retirees, annuitants, contractors, and vendors, and provides accounting services for the Military Departments and Defense Agencies.

10Which Treasury system is used to settle payments and collections between federal agencies in a buyer-seller transaction?

A.Intra-Governmental Payment and Collection (IPAC)

B.Automated Clearing House (ACH)

C.Fedwire

D.Pay.gov

Explanation: IPAC is the standardized Treasury system that transfers funds and supporting detail between federal agencies. ACH and Fedwire move funds to and from non-federal payees, and Pay.gov is a public-facing collection portal.

About the CDFM Module 3 Exam

CDFM Module 3 is the third of three required exams for the Certified Defense Financial Manager designation. It tests Accounting (25.3%), Finance (18.1%), Auditing (25.4%), and Fiscal Law (31.2%). Candidates must demonstrate working knowledge of federal accounting standards, USSGL, the CFO Act financial statements, DoD disbursing and certifying officer responsibilities, Prompt Payment Act and DCIA payment requirements, OMB A-123 internal controls, GAGAS auditing, the DoD FIAR program, and core fiscal law doctrines including the Anti-Deficiency Act.

Questions

80 scored questions

Time Limit

2 hours (CBT)

Passing Score

Pass/Fail (scaled)

Exam Fee

$119 per module (Society of Defense Financial Management (SDFM))

CDFM Module 3 Exam Content Outline

25.3%

Accounting

Federal accounting framework, FASAB SFFAS, USSGL, CFO Act financial statements (Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, Statement of Custodial Activity), managerial cost accounting, fund types, property/plant/equipment, and DoD FMR Volume 4 accounting policy

18.1%

Finance

DoD disbursing functions, certifying officer pecuniary liability (31 U.S.C. § 3528), military and civilian pay, travel and contract pay, Prompt Payment Act (5 CFR 1315), Debt Collection Improvement Act (DCIA), IPAC, EFT/ACH, and Treasury collections through Pay.gov

25.4%

Auditing

GAGAS (Yellow Book) financial, attestation, and performance audits, DoD Financial Improvement and Audit Readiness (FIAR) program, IPA audits managed by DoD OIG, audit phases (planning, fieldwork, reporting), audit opinions (unmodified, qualified, adverse, disclaimer), and audit documentation requirements

31.2%

Fiscal Law

Constitutional authority, Purpose-Time-Amount, Bona Fide Needs Rule (31 U.S.C. § 1502), Anti-Deficiency Act (31 U.S.C. §§ 1341, 1342, 1517), Miscellaneous Receipts Statute (31 U.S.C. § 3302(b)), Comptroller General decisions (GAO Red Book), continuing resolutions, reprogramming, and augmentation of appropriations

How to Pass the CDFM Module 3 Exam

What You Need to Know

Passing score: Pass/Fail (scaled)
Exam length: 80 questions
Time limit: 2 hours (CBT)
Exam fee: $119 per module

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CDFM Module 3 Study Tips from Top Performers

1Memorize the four official Module 3 weights (Accounting 25.3%, Finance 18.1%, Auditing 25.4%, Fiscal Law 31.2%) and allocate study time accordingly

2Map every Prompt Payment Act timeline: 30-day due date, interest accrual starting the day after the due date, and the semiannual Treasury PPA interest rate (5 CFR 1315)

3Drill the USSGL budgetary chain - Apportionment (4510), Allotment (4610), Commitment, Undelivered Order (4801), Delivered Order (4901) - until the entries are automatic

4Lock in fiscal-law shortcuts: Purpose-Time-Amount, Bona Fide Needs Rule (31 U.S.C. § 1502), Miscellaneous Receipts (§ 3302(b)), and Anti-Deficiency Act (§§ 1341, 1342, 1517)

5Practice mapping DoD FMR volumes by topic: Volume 4 (accounting), Volume 5 (disbursing), Volume 7A (military pay), Volume 9 (travel)

Frequently Asked Questions

What is the format of CDFM Module 3?

CDFM Module 3 — Accounting and Finance is an 80-question, 2-hour computer-based exam administered through Pearson VUE either at a test center or via OnVUE online proctoring. All questions are multiple choice. Per the SDFM CDFM Candidate Handbook (v25.05), each of the three required CDFM modules follows the same length and time limit and may be taken in any order.

What topics are tested on CDFM Module 3?

CDFM Module 3 tests four competency areas per the official blueprint: Accounting (25.3%), Finance (18.1%), Auditing (25.4%), and Fiscal Law (31.2%). Accounting covers FASAB SFFAS, USSGL, and CFO Act statements. Finance covers disbursing, certifying officers, Prompt Payment Act, and DCIA. Auditing covers GAGAS and DoD FIAR. Fiscal Law covers Purpose-Time-Amount, the Bona Fide Needs Rule, and the Anti-Deficiency Act.

How much does CDFM Module 3 cost?

Each CDFM exam module costs $119 in 2026, including Module 3. The full CDFM application is $406 for SDFM members and $446 for non-members, which covers a $49 (member) or $89 (non-member) application fee plus the three exam fees. Retakes are also $119 each, with required waiting periods of 14 days for a first retake and 28 days for additional retakes of the same module.

What is the passing score for CDFM Module 3?

SDFM reports CDFM exam results on a scaled pass/fail basis and does not publish a numeric percentage cut score. Candidates receive a Pass or Fail result for each module, and a Pass is required on Modules 1, 2, and 3 (within a 4-year window) to earn the CDFM designation. SDFM may withhold or cancel a score for validity concerns.

How long should I study for CDFM Module 3?

Most candidates plan 60-100 hours of dedicated study for Module 3, particularly if they have not recently completed the SDFM Enhanced Defense Financial Management Training Course (EDFMTC). The largest topic blocks should be Fiscal Law (31.2%) and Auditing (25.4%), followed by Accounting (25.3%) and Finance (18.1%). Repeated practice questions, especially on USSGL, Prompt Payment Act, and the Anti-Deficiency Act, materially improve readiness.

Can I take CDFM Module 3 from home?

Yes. SDFM allows you to take CDFM Module 3 from home via Pearson VUE's OnVUE online-proctored platform, in addition to in-person testing at any Pearson VUE test center worldwide. OnVUE requires a private testing space and a system check; review Pearson VUE's OnVUE requirements before scheduling. Candidates may reschedule or cancel an OnVUE appointment up to the appointment time at no cost.

Do I need to take the modules in order?

No. SDFM allows candidates to take CDFM Modules 1, 2, and 3 in any order. Module 4 (Acquisition Specialty), which adds the CDFM-A designation, can be taken at any time, but the CDFM must be earned before the CDFM-A is awarded. Many candidates take Module 3 last because of the cumulative fiscal law content, but the sequence is up to you.