Question 1

GASB Concepts Statement No. 2 requires state and local governments to include service efforts and accomplishments measures within the comprehensive annual financial report.

Accepted Answer

A) True 
 B)False

Question 2

Under certain circumstances a cost generally unallowable under a grant agreement may be allowable.

Accepted Answer

A) True 
 B)False

Question 3

Service efforts and accomplishments reporting is also referred to as citizen-centric reporting.

Accepted Answer

A) True 
 B)False

Question 4

Under service efforts and accomplishments (SEA) reporting input measures are quantity measures that reflect the quantity of a service provided, such as the number of lane-miles of road repaired.

Accepted Answer

A) True 
 B)False

Question 5

The finance officer of a small city has heard that certain items of cost may be allowable under federal grants, even though they were not incurred specifically for the grant. To what source could the finance officer go to determine what costs are allowable under federal grants? Why do you think the federal government specifies the allowability of costs?

Accepted Answer

The answer of The finance officer of a small city...

Question 6

Which of the following statements regarding service efforts and accomplishments (SEA) is not True?

Accepted Answer

A)  Measures of service efforts, or input measures, relate to the amount of financial and nonfinancial resources (such as money and materials) used in a program or process. 
B)  Effort measures relate service efforts to outputs of service and to outcomes or results of services. 
C)  Output measures are quantity measures that reflect either the quantity of a service provided or the quantity of service provided that meets a specified quality requirement. 
D)  Outcome measures gauge accomplishments, or the results of services provided.

Question 7

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

Accepted Answer

A)  Budget docket. 
B)  Legal timetable. 
C)  Hearing schedule. 
D)  Budget calendar.

Question 8

Which of the following has contributed most to governments' interest in activity-based costing?

Accepted Answer

A)  GASB standards. 
B)  Implementation of innovative management approaches (such as TQM and SEA measures) in response to public demand for greater accountability and productivity. 
C)  Increased demand for high profile management tools to bolster the image of government. 
D)  The enactment of Sarbanes-Oxley legislation.

Question 9

Under service efforts and accomplishments (SEA) reporting, outcome measures gauge accomplishments, or the results of services provided, such as the percentage of lane-miles of road in excellent, good, or fair condition.

Accepted Answer

A) True 
 B)False

Question 10

When planning, budgeting, and performance measurement are related, good performance is rewarded, and consequences exist for substandard performance.

Accepted Answer

A) True 
 B)False

Question 11

Effective capital budgeting for general capital assets of a government requires:

Accepted Answer

A)  Intermediate and long-range capital improvement plans for general capital assets. 
B)  Nonfinancial information on physical measures and service condition of capital assets of component units. 
C)  Consideration of how proprietary fund capital projects will be financed. 
D)  Information about the capital asset needs of a motor pool accounted for as an internal service fund.

Question 12

The sole purpose of preparing a government budget is to show compliance with laws and regulations.

Accepted Answer

A) True 
 B)False

Question 13

A major disadvantage of activity-based costing (ABC) in a government setting is the very limited number of activities for which it can be used.

Accepted Answer

A) True 
 B)False

Question 14

A budgeting method that derives the subsequent year's budget from the current year's budget is called:

Accepted Answer

A)  Planning-programming-budgeting. 
B)  Incremental budgeting. 
C)  Zero-based budgeting. 
D)  Performance budgeting.

Question 15

For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate definition.
A. Allowable costs
B. Cost principle
C. Cost objective
D. Indirect costs
E. Direct costs
F. Activity-based costing
________ 1. A system that identifies specific costs that drive the cost of service or production activities
________ 2. Costs incurred that cannot be identified specifically with a cost objective
________ 3. Costs that meet specific criteria determined by the resource provider
________ 4. A program, function, activity, award, organizational subdivision, contract, or work unit established for the accumulation of costs

Accepted Answer

The answer of For each of the following definitions, indicate...

Question 16

Cash receipts and cash disbursement budgets for a government:

Accepted Answer

A)  Should be prepared for all funds for the entire fiscal year. 
B)  Should be prepared monthly or as needed to enhance cash management, investment management, and short-term debt management. 
C)  Should be prepared for only those funds for which appropriations budgets are required by law to be prepared on the accrual basis or the modified accrual basis. 
D)  Should be prepared for only those funds for which appropriations budgets are not required by law.

Question 17

The United States Office of Management and Budget (OMB) publishes uniform guidance, which provides streamlined guidelines for grant accounting and reporting.

Accepted Answer

A) True 
 B)False

Question 18

Identify and define the three broad categories of service efforts and accomplishments (SEA) measures.

Accepted Answer

The answer of Identify and define the three broad categories...

Question 19

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

Accepted Answer

A)  Fiduciary fund type. 
B)  Fund of a government. 
C)  Governmental unit. 
D)  Governmental fund type except special revenue funds.

Question 20

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

Accepted Answer

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.

Exam 12: Budgeting and Performance Measurement

GASB Concepts Statement No. 2 requires state and local governments to include service efforts and accomplishments measures within the comprehensive annual financial report.

Under certain circumstances a cost generally unallowable under a grant agreement may be allowable.

Service efforts and accomplishments reporting is also referred to as citizen-centric reporting.

Under service efforts and accomplishments (SEA) reporting input measures are quantity measures that reflect the quantity of a service provided, such as the number of lane-miles of road repaired.

Which of the following statements regarding service efforts and accomplishments (SEA) is not True?

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

Which of the following has contributed most to governments' interest in activity-based costing?

Under service efforts and accomplishments (SEA) reporting, outcome measures gauge accomplishments, or the results of services provided, such as the percentage of lane-miles of road in excellent, good, or fair condition.

When planning, budgeting, and performance measurement are related, good performance is rewarded, and consequences exist for substandard performance.

Effective capital budgeting for general capital assets of a government requires:

The sole purpose of preparing a government budget is to show compliance with laws and regulations.

A major disadvantage of activity-based costing (ABC) in a government setting is the very limited number of activities for which it can be used.

A budgeting method that derives the subsequent year's budget from the current year's budget is called:

Cash receipts and cash disbursement budgets for a government:

The United States Office of Management and Budget (OMB) publishes uniform guidance, which provides streamlined guidelines for grant accounting and reporting.

Identify and define the three broad categories of service efforts and accomplishments (SEA) measures.

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

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