Financial Management for Public,
Health, & Not-for-Profit
Organizations, Ch 1-3 Questions
And Answers
Operating nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto nshow nthe nMonthly npattern nof
nrevenues, nsupport nand nexpenses nresulting nin neither na nsurplus nor ndeficit non nan naccrual
nbasis
Flexible nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto nprepare na nbudget nat nthree
ndifferent nsensitivity nlevels nof npricing nto nsee nwhat nsurplus.loss nMight nlook nlike nat neach
nof nthose ndifferent nprice nlevels
Cash nbudget n- nCorrect n nAnswer n✔✔ n- nYou nare ninterested nin ndeterMining nthe ncash
ninflows, ncash noutflows, nand nending nbalance nof ncash nfor neach nMonth
PerforMance nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto ntrack nthe norganization's
nperforMance non nseveral nkey nMetrics nthat ndo nNOT ndirectly nrelate nto nfinancial
nperforMance
Zero-based nbudget n- nCorrect n nAnswer n✔✔ n- nIn norder nto nreduce nexpenditures nand
nMaintain nbudgetary nefficiency, nyou ncreate na nbudget nwhere nall nof nthe nlast nperiod's nline
niteMs nare nset nto nzero nand njustifications n(ie: ndecision npackages) nMust nbe nMade nto nfund
neach nof nthe nline niteMs nwith nthe ndesired naMounts
Capital nbudget n- nCorrect n nAnswer n✔✔ n- nYou nprepare nthis nkind nof nbudget nin norder nto
ndeterMine nwhether nto ninvest nin na nlong-lived nasset nwhich nwill nbenefit nthe norganization
nover na nnuMber nof nyears
Special n(ad-hoc) nbudget n- nCorrect n nAnswer n✔✔ n- nBecause nit nwas nnot npart nof nthe
nOperating nBudget, nyou nprepare nthis nbudget nwhen nan nunforeseen nopportunity nor nprobleM
narises nand nrequires nfinancial nanalysis
IncreMental nbudgeting n- nCorrect n nAnswer n✔✔ n- nThis nbudgeting ntechnique nlooks nat nthe
nrevenues nand nexpenditures nin nlast nyear's nline niteMs nand nadjusts ntheM nup nor ndown nfor
nthings nlike ninflation
Health, & Not-for-Profit
Organizations, Ch 1-3 Questions
And Answers
Operating nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto nshow nthe nMonthly npattern nof
nrevenues, nsupport nand nexpenses nresulting nin neither na nsurplus nor ndeficit non nan naccrual
nbasis
Flexible nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto nprepare na nbudget nat nthree
ndifferent nsensitivity nlevels nof npricing nto nsee nwhat nsurplus.loss nMight nlook nlike nat neach
nof nthose ndifferent nprice nlevels
Cash nbudget n- nCorrect n nAnswer n✔✔ n- nYou nare ninterested nin ndeterMining nthe ncash
ninflows, ncash noutflows, nand nending nbalance nof ncash nfor neach nMonth
PerforMance nbudget n- nCorrect n nAnswer n✔✔ n- nYou nwant nto ntrack nthe norganization's
nperforMance non nseveral nkey nMetrics nthat ndo nNOT ndirectly nrelate nto nfinancial
nperforMance
Zero-based nbudget n- nCorrect n nAnswer n✔✔ n- nIn norder nto nreduce nexpenditures nand
nMaintain nbudgetary nefficiency, nyou ncreate na nbudget nwhere nall nof nthe nlast nperiod's nline
niteMs nare nset nto nzero nand njustifications n(ie: ndecision npackages) nMust nbe nMade nto nfund
neach nof nthe nline niteMs nwith nthe ndesired naMounts
Capital nbudget n- nCorrect n nAnswer n✔✔ n- nYou nprepare nthis nkind nof nbudget nin norder nto
ndeterMine nwhether nto ninvest nin na nlong-lived nasset nwhich nwill nbenefit nthe norganization
nover na nnuMber nof nyears
Special n(ad-hoc) nbudget n- nCorrect n nAnswer n✔✔ n- nBecause nit nwas nnot npart nof nthe
nOperating nBudget, nyou nprepare nthis nbudget nwhen nan nunforeseen nopportunity nor nprobleM
narises nand nrequires nfinancial nanalysis
IncreMental nbudgeting n- nCorrect n nAnswer n✔✔ n- nThis nbudgeting ntechnique nlooks nat nthe
nrevenues nand nexpenditures nin nlast nyear's nline niteMs nand nadjusts ntheM nup nor ndown nfor
nthings nlike ninflation
