Multiple Choice

1.	A budget is a financial plan that includes the following Estimate of expenditures and method for financing them Outlines the levels of services to be performed and estimates the costs of those service Data concerning the prior year operating budget All of the above
2.	The United States is Federal System which means that: States exist as independent layers of government States are limited by the constitution to certain financial powers None of the above A and B
3.	At the federal level the largest revenues source is: Income Taxes Property Taxes Excise taxes Estate taxes
4.	When looking at an entities financial reports, as structural deficit: Means that the entity is operating efficiently Occurs when long terms spending exceeds long term revenues Occurs when a short terms assets exceed short terms liabilities Indicates financial health
5.	Stable revenues such as property taxes that do not adjust quickly to changes in market conditions are also known as: Elastic taxes Plastic taxes Inelastic taxes Non-moveable taxes
6.	When taxes increase as the ability the pay increase, this is know as: Diagonal Equity Vertical Equity Horizontal Equity Upside down Equity
7.	Fairness of distribution of tax liabilities among dissimilar groups is: Diagonal Equity Vertical Equity Horizontal Equity Upside down Equity
8.	User fees are: Taxes Direct charges for specific programs Not necessary A way for governments to overcharge residents
9.	Tax apportionment is when a company may owe taxes: In more than one state Do not owe any taxes Pay taxes only in their home state None of the above
10.	The Government Accounting Standards Board (GASB); Is the independent group that establish accounting standards for State and Local governments Establishes requirements for financial reporting for State and Local government Is pointless and not necessary A and B None of the above
11.	When the revenues fall short, but a government continues to spend, this is known as: Surplus Net Assets Deficit Spending Great financial management
12.	The federal government uses the following types of investments/borrowing to help cash flow issue created from deficit spending: CDs Treasury Bonds Treasury Bills Treasury Notes All of the above A, B and C only
13.	Revenues that are Income Inelastic: Do not matter in budgeting and revenue forecasting Tend to be stable regardless of the economy Tend to not be stable regardless of the economy
14.	The following are the 3 types of Nets Assets: Unrestricted, temporarily, restricted, permanently restricted Short term, long term, mid term Useable, sometimes useable, and never useable None of the above All of the above
15.	The accounting equation is which of the following: Assets = Liabilites x Net Assets Assets + Net Assets = Liabilies Assets/Liabilities = Net Assets Assets = Liabilities + Net Assets