Question

Multiple Choice Questions
Identify the best answer for each of the following:
1. General budgets are most common for which of the following funds?
a. General Fund.
b. Capital Projects Fund.
c. Permanent Fund.
d. Internal Service Fund.

2. Special budgets are best defined as budgets
a. That include special items.
b. Prepared for any fund other than the General, Special Revenue, and Debt Service Funds.
c. That are always multiyear in nature.
d. For proprietary funds.

3. Which of the following statements about capital budgets is true?
a. Most capital program budgets cover only General Fund capital outlay for the next year.
b. The current segment of a capital program is typically included as the capital outlay of the current annual budget.
c. Governments typically have one year capital plans for governmental funds but multi-year plans for proprietary funds.
d. Capital budgets include proposed expenditures for operations and debt service as well as for capital outlay.

4. Which of the following statements is false?
a. Generally Accepted Accounting Principles (GAAP) dictate the basis of budgeting for all governmental funds.
b. Budgets of different governments may have different budgetary control points.
c. A good budget process incorporates a long-term perspective, even if the budget is adopted annually.
d. Allocations are executive branch subdivisions of an appropriation to more detailed expenditure classifications.

5. Which of the following statements is true?
a. Encumbrances are equivalent to expenditures, and encumbrances outstanding at the end of a year should be reported as liabilities.
b. No expenditure can be reported without first being encumbered.
c. Encumbrances are recorded at the estimated cost of goods ordered or services contracted for. The subsequent amount recognized as expenditures upon receipt of the goods or services must equal the encumbered amount.
d. Encumbrances are recorded at the estimated cost of goods ordered or services contracted for. The subsequent amount recognized as expenditures upon receipt of the goods or services equals the actual cost.



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  • CreatedOctober 25, 2014
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