1.When the chief executive of a governmental unit submits a “balanced budget” to the legislative body, it usually means that:
a.the budget is balanced on the full accrual basis of accounting
b.the budget is balanced in accordance with generally accepted accounting principles
c.proposed expenditures do not exceed estimated monies available for the year
d.proposed expenditures do not exceed estimated tax revenues to be raised during the year
2.Which statement most accurately describes the use of cash forecasts in government?
a.cash forecasts are not needed because legislatively-approved budgets are sufficient to manage the use of governmental resources
b.cash forecasts are needed to plan for borrowing and investing because the timing of cash inflows does not necessarily match the timing of cash outflows
c.cash forecasts are not needed because they do not require the approval of legislative bodies
d.cash forecasts are needed because they provide the details necessary to support certain approaches to budgeting like performance budgeting
3.Which of the following approaches to budgeting is most likely to contain the details of salaries (such as number of personnel within each position) as well as the details of each type of expenditure other than salaries (such as supplies and travel)?
d.zero-based budgeting approach
4.Which type of budget is concerned with day-to-day spending and financing activities?
5.Which of the following approaches to budgeting requires each activity to be justified each year?
d.zero-based budgeting approach
6.Which of the following is expected to occur first in the budget process?
a.determine the property tax (millage) rate
b.hold public hearings on the budget
c.prepare revenue estimates
d.prepare departmental expenditure requests
7.Which of the following activities occurs closest to the completion of the budgetary process?
a.preparing revenue estimates
b.holding public budget hearings
c.preparing the capital outlay request summary
d.revising the budget calendar
8.Which of the following factors is the most important consideration in estimating sales tax collections for the year?
a.the projected volume of sales subject to the sales tax
b.the projected elementary school enrollment
c.the projected number of housing starts
d.the amount expected to be budgeted on the highway maintenance program
9.When preparing a fund budget for the next fiscal year, which of the following are important to consider when projecting the amount of resources that will be available for spending in the next year?
a.the projected fund expenditures for next year
b.the probable fund balance at the end of the current year
c.the projected transfers out of the fund for the next year
d.the projected fund revenues to be realized for the next year
e.both b and d
10.If a City Manager is looking at the cash forecast, he or she is most likely concerned about which of the following issues?
a.anticipated police overtime pay resulting from the 4th of July parade next summer
b.the expected cost of bridge repairs in the coming five years
c.anticipated short-term borrowing to cover the end of month payroll
d.the total amount to be spent for Fire Department operations in the current year