Ch. 12 - Nfp

20 Questions | Total Attempts: 350

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Ch. 12 - Nfp

Questions and Answers
  • 1. 
    Public sector budgets:
    • A. 

      Are integrated with the financial accounting system

    • B. 

      Enable governments to demonstrate compliance with laws and to communicate performance effectiveness

    • C. 

      Are adopted by governments after required public hearings

    • D. 

      All of the above

  • 2. 
    Which of the following steps would not usually be part of the budgeting process?
    • A. 

      Heads of operating departments prepare budget requests

    • B. 

      The chief executive (mayor or city manager, as appropriate) formally adopts the budget, thus giving it the force of law

    • C. 

      One or more public budget hearings are held

    • D. 

      Budget officer and other central administrators review and make adjustments to departmental requests

  • 3. 
    The budgeting principle in generally accepted accounting principles (GAAP) for state and local governments state that:
    • A. 

      The accounting system should provide the basis for appropriate budgetary control

    • B. 

      Budgetary comparison schedules should be presented as required supplementary information for the General Fund and each major special revenue fund that has a legally adopted budget

    • C. 

      Annual budgets should be adopted by each government

    • D. 

      All of the above

  • 4. 
    The budgetary comparison schedule required of state and local governments under GASB standards:
    • A. 

      Can be presented as required supplementary information (RSI) or as a statement in the basic financial statements

    • B. 

      Must be a schedule included as part of RSI

    • C. 

      Continues to be a statement included in the basic financial statements

    • D. 

      Is no longer required

  • 5. 
    All of the following are true statements about budgeting for performance in a governmental entity except:
    • A. 

      There are few examples of successful improvements in budgeting processes that have resulted in higher quality and performance of governments

    • B. 

      The GFOA's Distinguished Budget Presentation Award Program has spurred many governments to improve their budgeting processes and be recognized for it

    • C. 

      Some states have passed legislation that requires performance measures, both financial and nonfinancial

    • D. 

      Governments have adapted many private sector budgeting tools in an attempt to improve efficiency and deliver higher quality services to taxpayers

  • 6. 
    An approach to budgeting that requires the very existence of each program and the amount of resources requested to be allocated to that program to be justified each year is called:
    • A. 

      Incremental budgeting

    • B. 

      Zero-based budgeting

    • C. 

      Performance budgeting

    • D. 

      Planning-programming-budgeting

  • 7. 
    A benefit of using activity-based costing in a government is that it:
    • A. 

      Is a useful tool for measuring the cost of key administrative office activities

    • B. 

      Helps identify lower cost alternatives

    • C. 

      Aids in reducing the cost of service outcomes

    • D. 

      All of the above

  • 8. 
    Governments that choose to report service efforts and accomplishments (SEA):
    • A. 

      Must adhere to GASB SEA guidance

    • B. 

      Must adhere to GASB SEA guidance only if the SEA report is part of the CAFR

    • C. 

      Must adhere to guidance provided by the Association of Government Accountants (AGA), because GASB has not issued standards addressing SEA

    • D. 

      May refer to guidance provided by the GASB, the AGA, or other professional organizations

  • 9. 
    Efficiency measures, as the term is used in the service efforts and accomplishments (SEA) literature, can be described as:
    • A. 

      Measures that relate the quantity or cost of resources used to units of output

    • B. 

      Measures that relate to the amount of financial and nonfinancial resources used in a program or process

    • C. 

      Measures that relate costs to outcomes

    • D. 

      Measures that reflect either the quantity or quality of a service provided

  • 10. 
    Which of the following provides guidance to government managers and auditors in determining appropriate and allowable costs chargeable to federal grants and contracts for not-for-profit organizations?
    • A. 

      OMB Circular A-102, "Grants and Cooperative Agreements with State and Local Governments."

    • B. 

      OMB Circular A-110, "Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations."

    • C. 

      OMB Circular A-122, "Cost Principles for Non-Profit Organizations."

    • D. 

      OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations."

  • 11. 
    Which of the following statements is not consistent with the GASB's "Budgeting, Budgetary Control, and Budgetary Reporting Principle?"
    • A. 

      An annual budget must be adopted using generally accepted accounting principles.

    • B. 

      The accounting system should provide the basis for appropriate budgetary control.

    • C. 

      Budgetary comparison schedules should be presented as required supplementary information for the General Fund and each major special revenue fund for which an annual budget has been adopted.

    • D. 

      The budgetary comparison schedule should present both the original and the final appropriated budgets for the reporting period.

  • 12. 
    The GASB "Budgeting Principle" states that an annual budget should be adopted by (for) every:
    • A. 

      Governmental fund type

    • B. 

      Fund of a government

    • C. 

      Government

    • D. 

      Governmental fund type except capital projects funds.

  • 13. 
    An often used approach to budgeting that simply derives the subsequent year's budget from the current year's budget is called:
    • A. 

      Planning-programming-budgeting.

    • B. 

      Incremental budgeting

    • C. 

      Zero-based budgeting

    • D. 

      Performance budgeting

  • 14. 
    The government official typically responsible for providing department heads with such technical support as clerical assistance with budget computation and maintenance of document files relating to the budget is:
    • A. 

      The chief financial officer

    • B. 

      The legislative budget analyst

    • C. 

      The budget officer

    • D. 

      The director of finance

  • 15. 
    The schedule of legally required events in the budgeting process is generally referred to as the:
    • A. 

      Budget docket

    • B. 

      Legal timetable

    • C. 

      Hearing schedule

    • D. 

      Budget calendar

  • 16. 
    Which of the following might appropriately be termed an outcome indicator for a police department that reports service efforts and accomplishments (SEA) indicators?
    • A. 

      Number of crimes investigated

    • B. 

      Value of property lost due to crime

    • C. 

      Hours of patrol

    • D. 

      Number of personnel hours expended

  • 17. 
    State and local governments and nonprofit organizations that receive grants or contracts from the federal government should charge costs of these grants or contracts in conformity with:
    • A. 

      Cost Accounting Standards Board standards.

    • B. 

      Office of Management and Budget cost circulars.

    • C. 

      Financial Accounting Standards Board standards.

    • D. 

      Governmental Accounting Standards Board standards.

  • 18. 
    The type of budgeting that relates input of resources to output of services is zero-based budgeting.
    • A. 

      True

    • B. 

      False

  • 19. 
    Governmental budgets must be made available for public scrutiny, and public hearings must be held to provide adequate opportunity for citizens' input, prior to legislative adoption of the budget.
    • A. 

      True

    • B. 

      False

  • 20. 
    Under GASB standards, every government, regardless of its size, is instructed to prepare a cash budget for each month of the fiscal year.
    • A. 

      True

    • B. 

      False

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