Which of the following is not a category of WCFs?

Prepare for the Certified Defense Financial Manager Exam 1. Study with flashcards and multiple choice questions. Each question includes hints and explanations to boost your knowledge. Ace your exam with confidence!

Multiple Choice

Which of the following is not a category of WCFs?

Explanation:
Working Capital Funds are self-sustaining revolving funds used by DoD activities to finance operations through charges to internal customers. They fall into three established categories: stock funds, which maintain inventories and sell to internal customer activities; industrial funds, which perform production or processing activities for internal customers; and a combination of both, known as stock and industrial funds. Treasury funds do not fit as a WCF category because they are not DoD revolving funds managed within the DoD framework; they belong to the U.S. Treasury’s own fund structure and follow treasury rules. Therefore, Treasury funds are not considered a category of Working Capital Funds.

Working Capital Funds are self-sustaining revolving funds used by DoD activities to finance operations through charges to internal customers. They fall into three established categories: stock funds, which maintain inventories and sell to internal customer activities; industrial funds, which perform production or processing activities for internal customers; and a combination of both, known as stock and industrial funds. Treasury funds do not fit as a WCF category because they are not DoD revolving funds managed within the DoD framework; they belong to the U.S. Treasury’s own fund structure and follow treasury rules. Therefore, Treasury funds are not considered a category of Working Capital Funds.

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