Question 1

The audit process which occurs after the end of the budget year is designed to accomplish all of the following EXCEPT:

Accepted Answer

A)  Implement controls to correct variances. 
B)  Prevent fraud and waste. 
C)  Ensure the accuracy of operation. 
D)  Ensure compliance with policies and applicable laws. 
A)  Implement controls to correct variances. 
B)  Prevent fraud and waste. 
C)  Ensure the accuracy of operation. 
D)  Ensure compliance with policies and applicable laws. A

Question 2

Various strategies exist to reduce the budget deficits without actually changing spending intentions. The strategy of accelerating revenues and deferring spending is called:

Accepted Answer

A)  rosy scenarios. 
B)  one shots. 
C)  bubbles and timing. 
D)  magic asterisk. 
A)  rosy scenarios. 
B)  one shots. 
C)  bubbles and timing. 
D)  magic asterisk. C

Question 3

When justifying a budget request in narrative form), which of the following is NOT recommended to be discussed:

Accepted Answer

A)  What you want to do 
B)  Why you want to do it 
C)  What resources will be necessary 
D)  Technical calculations supporting the request 
A)  What you want to do 
B)  Why you want to do it 
C)  What resources will be necessary 
D)  Technical calculations supporting the request D

Question 4

Which of the following can contribute toward a phantom balance in an operating
budget?

Accepted Answer

A)  Transfer operating expenses to the capital budget. 
B)  Accelerate payment of income tax refunds. 
C)  Issue payroll checks on June 15 rather than June 20 July 1 fiscal year start). 
D)  Change the estimate of the property tax delinquency rate from 5 percent to 10 percent, to better reflect actual collection patterns. 
A)  Transfer operating expenses to the capital budget. 
B)  Accelerate payment of income tax refunds. 
C)  Issue payroll checks on June 15 rather than June 20 July 1 fiscal year start). 
D)  Change the estimate of the property tax delinquency rate from 5 percent to 10 percent, to better reflect actual collection patterns.

Question 5

Break-even analysis attempts to determine:

Accepted Answer

A)  levels of transfer payments. 
B)  levels of grant payments. 
C)  the point at which total costs equal total revenues. 
D)  the point at which variable costs equal variable revenues. 
A)  levels of transfer payments. 
B)  levels of grant payments. 
C)  the point at which total costs equal total revenues. 
D)  the point at which variable costs equal variable revenues.

Question 6

An allotment schedule is

Accepted Answer

A)  A mechanism to keep agency spending in line with the approved budget. 
B)  A mechanism to reduce agency spending below its budget request. 
C)  A timeline for the budget process. 
D)  A division of fiscal duties between the House and the Senate. 
A)  A mechanism to keep agency spending in line with the approved budget. 
B)  A mechanism to reduce agency spending below its budget request. 
C)  A timeline for the budget process. 
D)  A division of fiscal duties between the House and the Senate.

Question 7

Internal control standards do not include which of the following?

Accepted Answer

A)  Separation between operational transactions and accounting record keeping 
B)  Maintain qualified personnel and rotate duties 
C)  Use sequentially numbered receipt forms to acknowledge collections 
D)  Require regular external audit 
A)  Separation between operational transactions and accounting record keeping 
B)  Maintain qualified personnel and rotate duties 
C)  Use sequentially numbered receipt forms to acknowledge collections 
D)  Require regular external audit

Question 8

The appropriation to the State Library System fiscal year starts July 1) for fiscal 2012 was $15,000,000. On December 31, 2011, its budget reports showed expenditures of $7,500,000 and encumbrances outstanding of $500,000. Quarterly allotments were as follows: Q1-$3,750,000; Q2-$4,500,000; Q3-$3,750,000; and Q4-$3,000,000. What was the status of system operations at that point?

Accepted Answer

A)  Operation consistent with plan; half the year elapsed and half the money spent. 
B)  Over plan by $250,000. 
C)  Under plan by $250,000. 
D)  Under plan by $750,000. 
A)  Operation consistent with plan; half the year elapsed and half the money spent. 
B)  Over plan by $250,000. 
C)  Under plan by $250,000. 
D)  Under plan by $750,000.

Question 9

Which of the following is not a "rule of thumb" used by budget analysts in review of agency budgets?

Accepted Answer

A)  Cut departments with "bad" reputations. 
B)  Compare proposed budget with prior year and current year budget and actual expenditures to identify areas which may be reduced without great trouble. 
C)  Recommend repair and renovation rather than replacement of facilities. 
D)  None of the above; all are "rules of thumb" 
A)  Cut departments with "bad" reputations. 
B)  Compare proposed budget with prior year and current year budget and actual expenditures to identify areas which may be reduced without great trouble. 
C)  Recommend repair and renovation rather than replacement of facilities. 
D)  None of the above; all are "rules of thumb"

Question 10

A requirement that the Governor's operating budget be balanced usually means that:

Accepted Answer

A)  All expenditure proposed in that document must be covered either by revenue raised currently, available from prior year surpluses, or by borrowing on the promise to repay from future revenues. 
B)  All expenditure proposed in that document must be covered either by revenue raised currently or available from prior year surpluses. 
C)  The state can have no debt. 
D)  State expenditure cannot exceed state revenue for the year. 
A)  All expenditure proposed in that document must be covered either by revenue raised currently, available from prior year surpluses, or by borrowing on the promise to repay from future revenues. 
B)  All expenditure proposed in that document must be covered either by revenue raised currently or available from prior year surpluses. 
C)  The state can have no debt. 
D)  State expenditure cannot exceed state revenue for the year.

The audit process which occurs after the end of the budget year is designed to accomplish all of the following EXCEPT:

Various strategies exist to reduce the budget deficits without actually changing spending intentions. The strategy of accelerating revenues and deferring spending is called:

When justifying a budget request in narrative form), which of the following is NOT recommended to be discussed:

Which of the following can contribute toward a phantom balance in an operating budget?

Break-even analysis attempts to determine:

An allotment schedule is

Internal control standards do not include which of the following?

Which of the following is not a "rule of thumb" used by budget analysts in review of agency budgets?

A requirement that the Governor's operating budget be balanced usually means that:

Fundamental Principles of Public Finance

The Logic of the Budget Process

Budget Methods and Practices

Federal Budget Structures and Institutions

Budget Classifications, Systems, and Reform: Trying to Make Better Choices

Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools

Taxation: Criteria for Evaluating Revenue Options

Major Tax Structures: Income Taxes

Major Tax Structures: Taxes on Goods and Services

Major Tax Structures: Property Taxes

Revenue From User Fees, User Charges, and Sales by Public Monopolies

Revenue Forecasts, Revenue Estimates, and Tax Expenditure Budgets

Intergovernmental Fiscal Relations: Diversity and Coordination

Debt Administration

Filters

Exam 5: State and Local Governments

The audit process which occurs after the end of the budget year is designed to accomplish all of the following EXCEPT:

Various strategies exist to reduce the budget deficits without actually changing spending intentions. The strategy of accelerating revenues and deferring spending is called:

When justifying a budget request in narrative form), which of the following is NOT recommended to be discussed:

Which of the following can contribute toward a phantom balance in an operating budget?

Break-even analysis attempts to determine:

An allotment schedule is

Internal control standards do not include which of the following?

Which of the following is not a "rule of thumb" used by budget analysts in review of agency budgets?

A requirement that the Governor's operating budget be balanced usually means that:

Fundamental Principles of Public Finance

The Logic of the Budget Process

Budget Methods and Practices

Federal Budget Structures and Institutions

Budget Classifications, Systems, and Reform: Trying to Make Better Choices

Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools

Taxation: Criteria for Evaluating Revenue Options

Major Tax Structures: Income Taxes

Major Tax Structures: Taxes on Goods and Services

Major Tax Structures: Property Taxes

Revenue From User Fees, User Charges, and Sales by Public Monopolies

Revenue Forecasts, Revenue Estimates, and Tax Expenditure Budgets

Intergovernmental Fiscal Relations: Diversity and Coordination

Debt Administration

Filters