Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. \[\begin{array}{l} \begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\ \text {Salvage value of tractor in 10 years }&20,000\\ \text {Yearly cost of operator }&6,000\\ \text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\ \text {Option \#2 }&\\ \text {Yearly fees }&\$36,000\\ \text {Option \#3 }&\\ \text {Yearly cost of part-time labor }&\$32,000\\ \text {Yearly cost of supplies, equipment repair, etc. }&1,000\\ \text {Present value factors $ @ 6 \% $ }&\\ \text {$ \$ 1 $ due in ten years }&.55839\\ \text {Annuity of $ \$ 1 $ for 10 years }&7.36009\\ \end{array} \end{array}\] -Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governmental and not-for-profit entities?

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

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. \[\begin{array}{l} \begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\ \text {Salvage value of tractor in 10 years }&20,000\\ \text {Yearly cost of operator }&6,000\\ \text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\ \text {Option \#2 }&\\ \text {Yearly fees }&\$36,000\\ \text {Option \#3 }&\\ \text {Yearly cost of part-time labor }&\$32,000\\ \text {Yearly cost of supplies, equipment repair, etc. }&1,000\\ \text {Present value factors $ @ 6 \% $ }&\\ \text {$ \$ 1 $ due in ten years }&.55839\\ \text {Annuity of $ \$ 1 $ for 10 years }&7.36009\\ \end{array} \end{array}\] -What is the present value of Option #1?

A) $220,000. B) $275,072. C) $297,408. D) $433,442. A) $220,000. B) $275,072. C) $297,408. D) $433,442.

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. \[\begin{array}{l} \begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\ \text {Salvage value of tractor in 10 years }&20,000\\ \text {Yearly cost of operator }&6,000\\ \text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\ \text {Option \#2 }&\\ \text {Yearly fees }&\$36,000\\ \text {Option \#3 }&\\ \text {Yearly cost of part-time labor }&\$32,000\\ \text {Yearly cost of supplies, equipment repair, etc. }&1,000\\ \text {Present value factors $ @ 6 \% $ }&\\ \text {$ \$ 1 $ due in ten years }&.55839\\ \text {Annuity of $ \$ 1 $ for 10 years }&7.36009\\ \end{array} \end{array}\] -What is the present value of Option #3?

A) $ 18,426. B) $235,522. C) $236,080. D) $242,882. A) $ 18,426. B) $235,522. C) $236,080. D) $242,882.

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. \[\begin{array}{l} \begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\ \text {Salvage value of tractor in 10 years }&20,000\\ \text {Yearly cost of operator }&6,000\\ \text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\ \text {Option \#2 }&\\ \text {Yearly fees }&\$36,000\\ \text {Option \#3 }&\\ \text {Yearly cost of part-time labor }&\$32,000\\ \text {Yearly cost of supplies, equipment repair, etc. }&1,000\\ \text {Present value factors $ @ 6 \% $ }&\\ \text {$ \$ 1 $ due in ten years }&.55839\\ \text {Annuity of $ \$ 1 $ for 10 years }&7.36009\\ \end{array} \end{array}\] -What is the present value of Option #2?

A) $ 20,102. B) $ 36,000. C) $264,964. D) $285,066. A) $ 20,102. B) $ 36,000. C) $264,964. D) $285,066.

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?

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

Exam 15: Managing for Results

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. Cost of tractor and equipment useful life 10 years \2 20,000 Salvage value of tractor in 10 years 20,000 Yearly cost of operator 6,000 Yearly maintenance and upkeep, supplies, etc. 3,000 Option \#2 Yearly fees \3 6,000 Option \#3 Yearly cost of part-time labor \3 2,000 Yearly cost of supplies, equipment repair, etc. 1,000 Present value factors @ 6 \% \ 1 due in ten years .55839 Annuity of \ 1 for 10 years 7.36009 -Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governmental and not-for-profit entities?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

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

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

D

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

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(True/False)

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Question 3

Correct Answer:

Verified

True

Which of the following groups is least likely to be involved in evaluating the efficiency and effectiveness of government programs?

(Multiple Choice)

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Question 4

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. Cost of tractor and equipment useful life 10 years \2 20,000 Salvage value of tractor in 10 years 20,000 Yearly cost of operator 6,000 Yearly maintenance and upkeep, supplies, etc. 3,000 Option \#2 Yearly fees \3 6,000 Option \#3 Yearly cost of part-time labor \3 2,000 Yearly cost of supplies, equipment repair, etc. 1,000 Present value factors @ 6 \% \ 1 due in ten years .55839 Annuity of \ 1 for 10 years 7.36009 -What is the present value of Option #1?

(Multiple Choice)

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Question 5

Accountants are actively involved in collecting and analyzing data to be used by public policy makers.Which of the following other groups might also be involved in the data collection and analysis process?

(Multiple Choice)

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Question 6

Aid for Friends, a not-for-profit entity, provides temporary shelter for the homeless, provides temporary housing and other assistance for victims of spousal abuse, serves meals to the needy in a congregate setting, operates a second-hand clothing store, and operates a food bank to provide food for those temporarily in need.Which of the following is the best statement of operating objectives for Aid for Friends?

(Multiple Choice)

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Question 7

Which of the following is an example of an efficiency measure?

(Multiple Choice)

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Question 8

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

(True/False)

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Question 9

It is widely accepted that capital assets should be financed with resources on hand to achieve interperiod equity.

(True/False)

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Question 10

Many of the benefits of program budgeting may be ascribed to the organizational self-examination that it requires at the outset.

(True/False)

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Question 11

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

(True/False)

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Question 12

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. Cost of tractor and equipment useful life 10 years \2 20,000 Salvage value of tractor in 10 years 20,000 Yearly cost of operator 6,000 Yearly maintenance and upkeep, supplies, etc. 3,000 Option \#2 Yearly fees \3 6,000 Option \#3 Yearly cost of part-time labor \3 2,000 Yearly cost of supplies, equipment repair, etc. 1,000 Present value factors @ 6 \% \ 1 due in ten years .55839 Annuity of \ 1 for 10 years 7.36009 -What is the present value of Option #3?

(Multiple Choice)

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Question 13

Program budgeting, although highly popular and successful, has many disadvantages or drawbacks.Which of the following is an advantage or benefit of program budgeting?

(Multiple Choice)

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Question 14

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?

(Multiple Choice)

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Question 15

Which of the following is true about zero-based budgeting?

(Multiple Choice)

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Question 16

Use the following information to answer Questions The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. Cost of tractor and equipment useful life 10 years \2 20,000 Salvage value of tractor in 10 years 20,000 Yearly cost of operator 6,000 Yearly maintenance and upkeep, supplies, etc. 3,000 Option \#2 Yearly fees \3 6,000 Option \#3 Yearly cost of part-time labor \3 2,000 Yearly cost of supplies, equipment repair, etc. 1,000 Present value factors @ 6 \% \ 1 due in ten years .55839 Annuity of \ 1 for 10 years 7.36009 -What is the present value of Option #2?

(Multiple Choice)

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Question 17

Which of the following is true about budgets prepared by entities that use program budgeting techniques?

(Multiple Choice)

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Question 18

Which of the following is a true statement regarding the implementation phase of a government program?

(Multiple Choice)

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Question 19

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. Nutrition \ 250,000 Family housing assistance \ 300,000 Shelter House \ 200,000 Legal aid \ 100,000 Medical assistance \ 150,000 Which of the following best describes the budgeting practices of this entity?

(Multiple Choice)

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Question 20

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

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

Which of the following groups is least likely to be involved in evaluating the efficiency and effectiveness of government programs?

Accountants are actively involved in collecting and analyzing data to be used by public policy makers.Which of the following other groups might also be involved in the data collection and analysis process?

Which of the following is an example of an efficiency measure?

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

It is widely accepted that capital assets should be financed with resources on hand to achieve interperiod equity.

Many of the benefits of program budgeting may be ascribed to the organizational self-examination that it requires at the outset.

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

Program budgeting, although highly popular and successful, has many disadvantages or drawbacks.Which of the following is an advantage or benefit of program budgeting?

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?

Which of the following is true about zero-based budgeting?

Which of the following is true about budgets prepared by entities that use program budgeting techniques?

Which of the following is a true statement regarding the implementation phase of a government program?

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

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