Question 1

Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governments and not-for-profit entities?

Accepted Answer

A) It may be used to enhance the objectivity of decision-making. 
B) Because all costs and all benefits can be quantified,it removes subjectivity from the decision process. 
C) It eliminates the role of value judgments in the decision-making process. 
D) It ensures that decisions about capital asset acquisition will be consistent with organizational goals and objectives. 
A) It may be used to enhance the objectivity of decision-making. 
B) Because all costs and all benefits can be quantified,it removes subjectivity from the decision process. 
C) It eliminates the role of value judgments in the decision-making process. 
D) It ensures that decisions about capital asset acquisition will be consistent with organizational goals and objectives. A

Question 2

"Outputs" is a term used to indicate the quantity or units of service provided by an activity.

Accepted Answer

A) True 
 B)False  True

Question 3

An accounting program has determined that preparing students for careers in public accounting is the program's goal.Which of the following measurements is the best outcomes measurement for this accounting program?

Accepted Answer

A) Number of accounting majors that graduate. 
B) Number of students that pass the CPA examination. 
C) Number of students in management positions in public accounting firms ten years after graduation. 
D) Number of students employed in public accounting within one year of graduation. 
A) Number of accounting majors that graduate. 
B) Number of students that pass the CPA examination. 
C) Number of students in management positions in public accounting firms ten years after graduation. 
D) Number of students employed in public accounting within one year of graduation. C

Question 4

Most accounting organizations support the notion that performance measures should be included in general-purpose annual financial reports.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT one of the three categories of SEA measures identified by the GASB?

Accepted Answer

A) Measures of efforts. 
B) Measures of financial stewardship. 
C) Measures of accomplishment. 
D) Measures that relate efforts to accomplishments. 
A) Measures of efforts. 
B) Measures of financial stewardship. 
C) Measures of accomplishment. 
D) Measures that relate efforts to accomplishments.

Question 6

Which of the following is a reason for governments and not-for-profit entities to incorporate service efforts and accomplishments SEA)measures into their management process?

Accepted Answer

A) Measuring and reporting upon SEA helps management determine short-term cash flow requirements. 
B) SEA measures allow management to make objective assessments about whether the goals of the government are worth achieving. 
C) SEA reporting fosters sound budgeting and administration. 
D) SEA fosters budgetary compliance and custodianship of resources. 
A) Measuring and reporting upon SEA helps management determine short-term cash flow requirements. 
B) SEA measures allow management to make objective assessments about whether the goals of the government are worth achieving. 
C) SEA reporting fosters sound budgeting and administration. 
D) SEA fosters budgetary compliance and custodianship of resources.

Question 7

Which of the following groups are involved in auditing a program?

Accepted Answer

A) Accountants. 
B) Statisticians. 
C) Economists. 
D) All of the above. 
A) Accountants. 
B) Statisticians. 
C) Economists. 
D) All of the above.

Question 8

Program outcomes frequently are more difficult to measure than inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 9

A disadvantage of evaluating capital expenditures separately from operating expenditures is that it is easy to overlook operating costs associated with newly acquired assets.

Accepted Answer

A) True 
 B)False

Question 10

An important part of capital budgeting is to compare alternative means of achieving the same objective.

Accepted Answer

A) True 
 B)False

Question 11

The concepts of outputs and outcomes are not the same because

Accepted Answer

A) Outputs measure how many units of service an activity produced,whereas outcomes measure the results that the activity produced compared with the activity's objectives. 
B) Outputs are quantifiable whereas outcomes are not. 
C) Outcomes are subject to audit whereas outputs are not. 
D) Outputs can be evaluated in relation to inputs,but outcomes cannot be related to either inputs or outputs. 
A) Outputs measure how many units of service an activity produced,whereas outcomes measure the results that the activity produced compared with the activity's objectives. 
B) Outputs are quantifiable whereas outcomes are not. 
C) Outcomes are subject to audit whereas outputs are not. 
D) Outputs can be evaluated in relation to inputs,but outcomes cannot be related to either inputs or outputs.

Question 12

Use the following information to answer Questions 
A piece of federal legislation has as one of its objectives "improving the health of older Americans." Title 20 of that legislation provides for granting federal funds to governments and not-for-profit entities to provide nutritious hot meals to older Americans in congregate settings.Senior Citizens Center,a not-for-profit entity,receives funding under this legislation.The center determines the following for a one-month period:
 $\begin{array}{lr}
\text { Number of meals served } & 500 \
\text { Total number of individuals participating in the program } & 25 \
\text { Total meals costs incurred } & \$ 860 \
\text { Average cost per meal } & \$ 1.72
\end{array}$
-The numerical value that best represents outcomes is

Accepted Answer

A) 500 
B) $1.72 
C) $860 
D) None of the above. 
A) 500 
B) $1.72 
C) $860 
D) None of the above.

Question 13

Help,Inc. ,a not-for-profit entity dedicated to providing assistance to the needy,has submitted to its governing body a budget that includes the following budgeted expenditures. $$\begin{array} { l l } 
\text { Nutrition } & \$ 250,000 \
\text { Family housing assistance } & \$ 300,000 \
\text { Shelter House } & \$ 200,000 \
\text { Legal aid } & \$ 100,000 \
\text { Medical assistance } & \$ 150,000
\end{array}$$ Which of the following best describes the budgeting practices of this entity?

Accepted Answer

A) The entity uses program budgeting techniques. 
B) The entity uses object classification budgeting techniques. 
C) The entity uses zero-base budgeting techniques. 
D) The entity uses priority-based budgeting techniques. 
A) The entity uses program budgeting techniques. 
B) The entity uses object classification budgeting techniques. 
C) The entity uses zero-base budgeting techniques. 
D) The entity uses priority-based budgeting techniques.

Question 14

One of the principal disadvantages of zero-base budgeting is that it requires budgetary units to provide information that may never be used in the decision process.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following steps of the management cycle of governments and not-for-profit entities are accountants least involved?

Accepted Answer

A) Performing cost benefit analysis on proposed programs. 
B) Selecting among alternative programs. 
C) Preparing financial reports. 
D) Evaluating efficiency and effectiveness of programs. 
A) Performing cost benefit analysis on proposed programs. 
B) Selecting among alternative programs. 
C) Preparing financial reports. 
D) Evaluating efficiency and effectiveness of programs.

Question 16

Due to limited resources,Johnson City must select from among the following capital projects.Which project should the city select?

Accepted Answer

A) Court-ordered improvements to the City Jail. 
B) Repairing the roof on City Hall. 
C) Replacing an inefficient data processing system with a more efficient system. 
D) Adding two new police cars to the fleet. 
A) Court-ordered improvements to the City Jail. 
B) Repairing the roof on City Hall. 
C) Replacing an inefficient data processing system with a more efficient system. 
D) Adding two new police cars to the fleet.

Question 17

The GASB indicates that the information in an SEA report should have relevance.If it does,then users can be sure that

Accepted Answer

A) The information is free from bias. 
B) The information is consistent with information reported in financial statements. 
C) The information helps users assess the organization's objectives. 
D) Even the quantitative information is understandable. 
A) The information is free from bias. 
B) The information is consistent with information reported in financial statements. 
C) The information helps users assess the organization's objectives. 
D) Even the quantitative information is understandable.

Question 18

College professors are evaluated on teaching,research,and service.Which of the following would be a surrogate for the desired operational objective of "Engage in research that expands the horizons of knowledge"?

Accepted Answer

A) Value of research grants received. 
B) Number of publications in peer-reviewed journals. 
C) Both of the above. 
D) Neither of the above. 
A) Value of research grants received. 
B) Number of publications in peer-reviewed journals. 
C) Both of the above. 
D) Neither of the above.

Question 19

Rather than cash inflows,the potential benefits of many capital assets can be expressed as cash savings to governments and not-for-profits.

Accepted Answer

A) True 
 B)False

Question 20

At many colleges and universities,students are asked to evaluate the quality of instruction received and course content for all undergraduate courses.The evaluations are used for which of the following?

Accepted Answer

A) As an outcome measure. 
B) As an output measure. 
C) As a surrogate for an outcome measure. 
D) As a surrogate for an output measure. 
A) As an outcome measure. 
B) As an output measure. 
C) As a surrogate for an outcome measure. 
D) As a surrogate for an output measure.

Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governments and not-for-profit entities?

"Outputs" is a term used to indicate the quantity or units of service provided by an activity.

An accounting program has determined that preparing students for careers in public accounting is the program's goal.Which of the following measurements is the best outcomes measurement for this accounting program?

Most accounting organizations support the notion that performance measures should be included in general-purpose annual financial reports.

Which of the following is NOT one of the three categories of SEA measures identified by the GASB?

Which of the following is a reason for governments and not-for-profit entities to incorporate service efforts and accomplishments SEA)measures into their management process?

Which of the following groups are involved in auditing a program?

Program outcomes frequently are more difficult to measure than inputs and outputs.

A disadvantage of evaluating capital expenditures separately from operating expenditures is that it is easy to overlook operating costs associated with newly acquired assets.

An important part of capital budgeting is to compare alternative means of achieving the same objective.

The concepts of outputs and outcomes are not the same because

One of the principal disadvantages of zero-base budgeting is that it requires budgetary units to provide information that may never be used in the decision process.

In which of the following steps of the management cycle of governments and not-for-profit entities are accountants least involved?

Due to limited resources,Johnson City must select from among the following capital projects.Which project should the city select?

The GASB indicates that the information in an SEA report should have relevance.If it does,then users can be sure that

College professors are evaluated on teaching,research,and service.Which of the following would be a surrogate for the desired operational objective of "Engage in research that expands the horizons of knowledge"?

Rather than cash inflows,the potential benefits of many capital assets can be expressed as cash savings to governments and not-for-profits.

At many colleges and universities,students are asked to evaluate the quality of instruction received and course content for all undergraduate courses.The evaluations are used for which of the following?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters

Exam 15: Managing for Results

Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governments and not-for-profit entities?

"Outputs" is a term used to indicate the quantity or units of service provided by an activity.

An accounting program has determined that preparing students for careers in public accounting is the program's goal.Which of the following measurements is the best outcomes measurement for this accounting program?

Most accounting organizations support the notion that performance measures should be included in general-purpose annual financial reports.

Which of the following is NOT one of the three categories of SEA measures identified by the GASB?

Which of the following is a reason for governments and not-for-profit entities to incorporate service efforts and accomplishments SEA)measures into their management process?

Which of the following groups are involved in auditing a program?

Program outcomes frequently are more difficult to measure than inputs and outputs.

A disadvantage of evaluating capital expenditures separately from operating expenditures is that it is easy to overlook operating costs associated with newly acquired assets.

An important part of capital budgeting is to compare alternative means of achieving the same objective.

The concepts of outputs and outcomes are not the same because

One of the principal disadvantages of zero-base budgeting is that it requires budgetary units to provide information that may never be used in the decision process.

In which of the following steps of the management cycle of governments and not-for-profit entities are accountants least involved?

Due to limited resources,Johnson City must select from among the following capital projects.Which project should the city select?

The GASB indicates that the information in an SEA report should have relevance.If it does,then users can be sure that

College professors are evaluated on teaching,research,and service.Which of the following would be a surrogate for the desired operational objective of "Engage in research that expands the horizons of knowledge"?

Rather than cash inflows,the potential benefits of many capital assets can be expressed as cash savings to governments and not-for-profits.

At many colleges and universities,students are asked to evaluate the quality of instruction received and course content for all undergraduate courses.The evaluations are used for which of the following?

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters