Question 1

Under current federal budget procedures, the fiscal year 2011 will begin on

Accepted Answer

A) September 30, 2011. 
B) October 1,2010. 
C) January 1, 2012. 
D) December 15, 2011. 
E) July 1, 2011. 
A) September 30, 2011. 
B) October 1,2010. 
C) January 1, 2012. 
D) December 15, 2011. 
E) July 1, 2011. B

Question 2

Explain the importance of cash management to state and local governments.

Accepted Answer

Cash management is crucial for state and local governments for several reasons. Firstly, effective cash management helps to ensure that the government has enough funds to meet its financial obligations, such as paying employees, funding public services, and making debt payments. Without proper cash management, the government may face liquidity issues and struggle to cover its expenses.

Additionally, cash management allows the government to optimize its cash flow and invest any excess funds in short-term, interest-bearing instruments. This can help to generate additional income for the government and maximize the return on its available funds.

Furthermore, effective cash management can also help the government to mitigate financial risks and minimize the impact of economic downturns or unexpected expenses. By maintaining a sufficient cash reserve and implementing sound cash management practices, the government can better withstand financial challenges and maintain fiscal stability.

Overall, cash management is essential for state and local governments to ensure financial stability, meet their obligations, and effectively manage their resources. It is a critical component of overall financial management and is essential for the effective operation of government entities.

Question 3

What type of accounting records expenditures when an obligation is incurred (as one records a check when it is written, not when the bank actually makes payment) and records revenues when earned (for example, when taxes are due, not when the taxpayer actually pays)?

Accepted Answer

A) The Austrian school of accounting 
B) Fund accounting 
C) Accrual accounting 
D) Time-phased accounting 
E) Cost accounting 
A) The Austrian school of accounting 
B) Fund accounting 
C) Accrual accounting 
D) Time-phased accounting 
E) Cost accounting C

Question 4

Explain uncontrollable expenditures.Why are they a problem?

Accepted Answer

Uncontrollable expenditures refer to exp

Question 5

What is the difference between the budget deficit and the national debt? How big a problem is the federal deficit?

Accepted Answer

The budget deficit and the national debt

Question 6

What is new performance budgeting, and what are some of the difficulties in making it work?

Accepted Answer

Performance budgeting is a budgeting pro

Question 7

Discuss the various proposals to reform federal taxation.

Accepted Answer

There are several proposals to reform fe

Question 8

How did the Congressional Budget and Impoundment Control Act changed the federal budget cycle?

Accepted Answer

The Congressional Budget and Impoundment

Question 9

Which of the following statements about the Congressional Budget Office is INCORRECT?

Accepted Answer

A) It advises Congress on the likely economic effect of different spending programs. 
B) It provides information on the cost of proposed policies. 
C) It was created in 1921 and originally designed to audit government expenditures. 
D) It prepares analysis of the president's budget and economic projections. 
E) It gives members of Congress arguments to use in their budget debates. 
A) It advises Congress on the likely economic effect of different spending programs. 
B) It provides information on the cost of proposed policies. 
C) It was created in 1921 and originally designed to audit government expenditures. 
D) It prepares analysis of the president's budget and economic projections. 
E) It gives members of Congress arguments to use in their budget debates.

Question 10

The top sources of funding for state and local government are

Accepted Answer

A) individual income taxes and corporate income taxes. 
B) individual income taxes and property taxes. 
C) sales tax and corporate taxes. 
D) intergovernmental revenues and individual income taxes. 
E) sales tax and intergovernmental revenue. 
A) individual income taxes and corporate income taxes. 
B) individual income taxes and property taxes. 
C) sales tax and corporate taxes. 
D) intergovernmental revenues and individual income taxes. 
E) sales tax and intergovernmental revenue.

Question 11

Distinguish between the following terms: budget authority, obligations, outlay, and cost.

Accepted Answer

Budget authority refers to the legal aut

Question 12

What is the capital budget?

Accepted Answer

The capital budget refers to the budget

Question 13

The starting point for each year's budget battle is a calculation of the cost of continuing existing programs without change and an adjustment of the costs merely to reflect shifts in work load (e.g., increase in number of clients) and effects of inflation.This estimate is called

Accepted Answer

A) current services budget. 
B) continuing resolution. 
C) incremental budget. 
D) marginal analysis budget. 
E) the Congressional Budget Office Estimate (CBO
E) . 
A) current services budget. 
B) continuing resolution. 
C) incremental budget. 
D) marginal analysis budget. 
E) the Congressional Budget Office Estimate (CBO
E) .

Question 14

The two major areas of expenditure for state and local governments are

Accepted Answer

A) police and general administration. 
B) police and education. 
C) education and welfare. 
D) interest on debt and highways. 
E) welfare and police. 
A) police and general administration. 
B) police and education. 
C) education and welfare. 
D) interest on debt and highways. 
E) welfare and police.

Question 15

refer to the following table.
COMPARISON OF TWO REVENUE SOURCES
  
-Type A tax is

Accepted Answer

A) property tax. 
B) sales tax. 
C) user charges. 
D) corporate income tax. 
E) personal income tax. 
A) property tax. 
B) sales tax. 
C) user charges. 
D) corporate income tax. 
E) personal income tax.

Question 16

In fiscal year 2007 federal expenditures as a percentage of gross domestic product were about

Accepted Answer

A) 5 percent. 
B) 10 percent. 
C) 20 percent. 
D) 30 percent. 
E) 40 percent. 
A) 5 percent. 
B) 10 percent. 
C) 20 percent. 
D) 30 percent. 
E) 40 percent.

Question 17

Discuss the ways in which policymakers simplify the budget process.

Accepted Answer

There are several ways in which policyma

Question 18

Which of the following concepts is most closely associated with a consumption tax?

Accepted Answer

A) Estate tax 
B) User fees 
C) Proportional tax 
D) Value-added tax 
E) Stabilization 
A) Estate tax 
B) User fees 
C) Proportional tax 
D) Value-added tax 
E) Stabilization

Question 19

Discuss some of the political strategies various agencies, legislators, and interest groups employ during the budgeting process.

Accepted Answer

During the budgeting process, various ag

Question 20

According to Allen Schick, there are three purposes of a budget.List these purposes and explain how these purposes shaped the budget's format.

Accepted Answer

According to Allen Schick, the three pur

Under current federal budget procedures, the fiscal year 2011 will begin on

Explain the importance of cash management to state and local governments.

What type of accounting records expenditures when an obligation is incurred (as one records a check when it is written, not when the bank actually makes payment) and records revenues when earned (for example, when taxes are due, not when the taxpayer actually pays)?

Explain uncontrollable expenditures.Why are they a problem?

What is the difference between the budget deficit and the national debt? How big a problem is the federal deficit?

What is new performance budgeting, and what are some of the difficulties in making it work?

Discuss the various proposals to reform federal taxation.

How did the Congressional Budget and Impoundment Control Act changed the federal budget cycle?

Which of the following statements about the Congressional Budget Office is INCORRECT?

The top sources of funding for state and local government are

Distinguish between the following terms: budget authority, obligations, outlay, and cost.

What is the capital budget?

The starting point for each year's budget battle is a calculation of the cost of continuing existing programs without change and an adjustment of the costs merely to reflect shifts in work load (e.g., increase in number of clients) and effects of inflation.This estimate is called

The two major areas of expenditure for state and local governments are

refer to the following table. COMPARISON OF TWO REVENUE SOURCES -Type A tax is

In fiscal year 2007 federal expenditures as a percentage of gross domestic product were about

Discuss the ways in which policymakers simplify the budget process.

Which of the following concepts is most closely associated with a consumption tax?

Discuss some of the political strategies various agencies, legislators, and interest groups employ during the budgeting process.

According to Allen Schick, there are three purposes of a budget.List these purposes and explain how these purposes shaped the budget's format.

The Nature of Public Administration

The Political-Legal Environment of Administration

Intergovernmental Relations

Administrative Responsibility and Ethics

Planning

Decision Making

Organizing

Leading

Implementation

Human Resources Management

Information Management

Filters

Exam 11: Public Financial Management

Under current federal budget procedures, the fiscal year 2011 will begin on

Explain the importance of cash management to state and local governments.

What type of accounting records expenditures when an obligation is incurred (as one records a check when it is written, not when the bank actually makes payment) and records revenues when earned (for example, when taxes are due, not when the taxpayer actually pays)?

Explain uncontrollable expenditures.Why are they a problem?

What is the difference between the budget deficit and the national debt? How big a problem is the federal deficit?

What is new performance budgeting, and what are some of the difficulties in making it work?

Discuss the various proposals to reform federal taxation.

How did the Congressional Budget and Impoundment Control Act changed the federal budget cycle?

Which of the following statements about the Congressional Budget Office is INCORRECT?

The top sources of funding for state and local government are

Distinguish between the following terms: budget authority, obligations, outlay, and cost.

What is the capital budget?

The starting point for each year's budget battle is a calculation of the cost of continuing existing programs without change and an adjustment of the costs merely to reflect shifts in work load (e.g., increase in number of clients) and effects of inflation.This estimate is called

The two major areas of expenditure for state and local governments are

refer to the following table. COMPARISON OF TWO REVENUE SOURCES -Type A tax is

In fiscal year 2007 federal expenditures as a percentage of gross domestic product were about

Discuss the ways in which policymakers simplify the budget process.

Which of the following concepts is most closely associated with a consumption tax?

Discuss some of the political strategies various agencies, legislators, and interest groups employ during the budgeting process.

According to Allen Schick, there are three purposes of a budget.List these purposes and explain how these purposes shaped the budget's format.

The Nature of Public Administration

The Political-Legal Environment of Administration

Intergovernmental Relations

Administrative Responsibility and Ethics

Planning

Decision Making

Organizing

Leading

Implementation

Human Resources Management

Information Management

Filters