FCR 110 MODULE 1: PREAWARD PHASE
ACTUAL EXAM PAPER 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ True or False. If a contract is physically complete, the period of
performance has expired, and there are no pending transactions expected,
the FM identifies these as dormant commitments and unliquidated
obligations. They are therefore eligible for close out by the paying office..
Answer: -True-False
◍ Tactical Market Research.
Answer: Focuses on a specific acquisition and helps Acquisition Teams
work out the details of an individual acquisition.
◍ The distribution of funds by the OSD Comptroller to the Services and
Defense Agencies is known as a(n):.
Answer: -Allotment-Allocation-Appropriation-Sub-allocation
◍ True or False. There are only two hard and fast criteria that the business
activity must meet in order to be included in a Working Capital Fund. They
are 1) produce identifiable outputs, and 2) these outputs can only serve DoD
agency requirements..
Answer: -True-False
◍ Components of QASP.
Answer: Include what you will monitor, who will do the monitoring,
performance assessment methods, objective and measurable acceptance
criteria, and remedies for unacceptable performance.
◍ True or False. Financial managers resolve unmatched disbursements
(UMDs) by conducting research and implementing corrective actions..
Answer: -True-False
,◍ True or False. Labor expenses incurred as part of the production of a
weapon system are categorized as investment costs..
Answer: -True-False
◍ True or False. Unliquidated balances in expired accounts that are not
supported by documentary evidence, must be deobligated after
closure/cancellation..
Answer: -True-False
◍ Why do organizations perform a Mid-Year review of their programs`
obligations and expenditures?.
Answer: -to reconcile program invoices-to reconcile program contract
discrepancies-to determine if they are on track to obligate and/or expend
funds-to close-out unliquidated obligations on the program
◍ Deliverable Schedule.
Answer: The deliverable schedule is a component described in RFQs.
◍ Contracting Method.
Answer: The contracting method determines the type of solicitation used.
◍ The Department of Defense moved funds from the Overseas Contingency
Transfer Fund to the Army`s Military Personnel appropriation to cover extra
costs associated with deploying troops unexpectedly to Afghanistan. This
action required:.
Answer: -Below-threshold reprogramming-(WRONG) Congressional
notification reprogramming-Congressional prior approval
reprogramming-Internal reprogramming
◍ Financial managers performing contract reconciliation will compare
databases, research differences, and ________..
Answer: -manage the daily operations of contract reconciliations-identify
root causes-make system and process adjustments to resolve issues-ensure
those involved in errors are dismissed
◍ Which appropriation category should be used to fund the purchase of 100
, heavy-lift transport aircraft?.
Answer: -Research, Development, Test, and Evaluation-Military
Construction-Military Personnel-Procurement
◍ True or False. Because product improvements involve existing systems,
versus the development of new systems, only the RDT&E appropriation
may be used to finance the development and testing of the product
improvement..
Answer: -True-False
◍ Which of the following is true concerning below-threshold reprogrammings
in Military Construction appropriations?.
Answer: -The amount added to an existing Line Item must be less than $20
million-The amount added to an existing Project must be less than $2
million or 25% of the projects original value, whichever is lower-The
amount taken from an existing Line Item must be less than $20 million or
20% of the Line Item`s original value, whichever is less-The amount added
to an existing Program element must be less than $10 million or 25% of the
PE`s original value, whichever is lower
◍ Details of Acquisition.
Answer: Worked out through tactical market research.
◍ Federal Acquisition Streamlining Act of 1994 (FASA).
Answer: An act that established the preference for purchasing supplies and
services from the commercial marketplace.
◍ Justifiably Urgent Need.
Answer: A situation where a shorter delivery schedule is warranted due to
pressing requirements.
◍ Which of the following information is NOT provided on the Contract Funds
Status Report (CFSR)?.
Answer: -Amount obligated on the contract-Earned Value to date by Work
Breakdown Structure element-Estimated termination costs-Forecast of
billings to the government
, ◍ Time now is February 2014 . Which of the following appropriations is
CURRENT at this time? Select all that apply. (TWO correct answers.).
Answer: -FY 2011 Military Construction, Air Force-FY 2012 Shipbuilding
and Conversion, Navy-FY 2010 Procurement, Marine Corps-FY 2013
Military Personnel, Army
◍ Ongoing Market Research.
Answer: Important throughout the contract lifecycle to ensure supplies or
services continue to provide the best value and meet current needs.
◍ Acquisition Lifecycle.
Answer: The entire process of planning, executing, and managing
acquisitions.
◍ True or False. During the last two months of the fiscal year, appropriation
sponsors conduct intense effort to pull back unobligated funds and reissue to
other unfunded requirements..
Answer: -True-False
◍ Which one of the following statements is true concerning both deferrals and
rescissions?.
Answer: -Both are impoundments of funds-Both are temporary delays in the
execution of funds-Both must be explicitly disapproved by Congress to
force funds to be released for execution-Both must be explicitly approved by
Congress to permit funds to be withheld from execution
◍ Project Management Plan.
Answer: Documents that contain the high-level business and technical
approach for meeting project objectives, evolving throughout the project
lifecycle.
◍ FAR part 12.
Answer: Regulations that govern the use of commercial contracts.
◍ DoD policy requires that obligations be recorded:.
Answer: -When a procurement request is sent to a contracting officer-No
ACTUAL EXAM PAPER 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ True or False. If a contract is physically complete, the period of
performance has expired, and there are no pending transactions expected,
the FM identifies these as dormant commitments and unliquidated
obligations. They are therefore eligible for close out by the paying office..
Answer: -True-False
◍ Tactical Market Research.
Answer: Focuses on a specific acquisition and helps Acquisition Teams
work out the details of an individual acquisition.
◍ The distribution of funds by the OSD Comptroller to the Services and
Defense Agencies is known as a(n):.
Answer: -Allotment-Allocation-Appropriation-Sub-allocation
◍ True or False. There are only two hard and fast criteria that the business
activity must meet in order to be included in a Working Capital Fund. They
are 1) produce identifiable outputs, and 2) these outputs can only serve DoD
agency requirements..
Answer: -True-False
◍ Components of QASP.
Answer: Include what you will monitor, who will do the monitoring,
performance assessment methods, objective and measurable acceptance
criteria, and remedies for unacceptable performance.
◍ True or False. Financial managers resolve unmatched disbursements
(UMDs) by conducting research and implementing corrective actions..
Answer: -True-False
,◍ True or False. Labor expenses incurred as part of the production of a
weapon system are categorized as investment costs..
Answer: -True-False
◍ True or False. Unliquidated balances in expired accounts that are not
supported by documentary evidence, must be deobligated after
closure/cancellation..
Answer: -True-False
◍ Why do organizations perform a Mid-Year review of their programs`
obligations and expenditures?.
Answer: -to reconcile program invoices-to reconcile program contract
discrepancies-to determine if they are on track to obligate and/or expend
funds-to close-out unliquidated obligations on the program
◍ Deliverable Schedule.
Answer: The deliverable schedule is a component described in RFQs.
◍ Contracting Method.
Answer: The contracting method determines the type of solicitation used.
◍ The Department of Defense moved funds from the Overseas Contingency
Transfer Fund to the Army`s Military Personnel appropriation to cover extra
costs associated with deploying troops unexpectedly to Afghanistan. This
action required:.
Answer: -Below-threshold reprogramming-(WRONG) Congressional
notification reprogramming-Congressional prior approval
reprogramming-Internal reprogramming
◍ Financial managers performing contract reconciliation will compare
databases, research differences, and ________..
Answer: -manage the daily operations of contract reconciliations-identify
root causes-make system and process adjustments to resolve issues-ensure
those involved in errors are dismissed
◍ Which appropriation category should be used to fund the purchase of 100
, heavy-lift transport aircraft?.
Answer: -Research, Development, Test, and Evaluation-Military
Construction-Military Personnel-Procurement
◍ True or False. Because product improvements involve existing systems,
versus the development of new systems, only the RDT&E appropriation
may be used to finance the development and testing of the product
improvement..
Answer: -True-False
◍ Which of the following is true concerning below-threshold reprogrammings
in Military Construction appropriations?.
Answer: -The amount added to an existing Line Item must be less than $20
million-The amount added to an existing Project must be less than $2
million or 25% of the projects original value, whichever is lower-The
amount taken from an existing Line Item must be less than $20 million or
20% of the Line Item`s original value, whichever is less-The amount added
to an existing Program element must be less than $10 million or 25% of the
PE`s original value, whichever is lower
◍ Details of Acquisition.
Answer: Worked out through tactical market research.
◍ Federal Acquisition Streamlining Act of 1994 (FASA).
Answer: An act that established the preference for purchasing supplies and
services from the commercial marketplace.
◍ Justifiably Urgent Need.
Answer: A situation where a shorter delivery schedule is warranted due to
pressing requirements.
◍ Which of the following information is NOT provided on the Contract Funds
Status Report (CFSR)?.
Answer: -Amount obligated on the contract-Earned Value to date by Work
Breakdown Structure element-Estimated termination costs-Forecast of
billings to the government
, ◍ Time now is February 2014 . Which of the following appropriations is
CURRENT at this time? Select all that apply. (TWO correct answers.).
Answer: -FY 2011 Military Construction, Air Force-FY 2012 Shipbuilding
and Conversion, Navy-FY 2010 Procurement, Marine Corps-FY 2013
Military Personnel, Army
◍ Ongoing Market Research.
Answer: Important throughout the contract lifecycle to ensure supplies or
services continue to provide the best value and meet current needs.
◍ Acquisition Lifecycle.
Answer: The entire process of planning, executing, and managing
acquisitions.
◍ True or False. During the last two months of the fiscal year, appropriation
sponsors conduct intense effort to pull back unobligated funds and reissue to
other unfunded requirements..
Answer: -True-False
◍ Which one of the following statements is true concerning both deferrals and
rescissions?.
Answer: -Both are impoundments of funds-Both are temporary delays in the
execution of funds-Both must be explicitly disapproved by Congress to
force funds to be released for execution-Both must be explicitly approved by
Congress to permit funds to be withheld from execution
◍ Project Management Plan.
Answer: Documents that contain the high-level business and technical
approach for meeting project objectives, evolving throughout the project
lifecycle.
◍ FAR part 12.
Answer: Regulations that govern the use of commercial contracts.
◍ DoD policy requires that obligations be recorded:.
Answer: -When a procurement request is sent to a contracting officer-No
