CGFM TEST 2(graded A+)question & answers 2023

CGFM TEST 2(graded A+)question & answers 2023 Governments exist to provide services - correct answer no profit motive, no single measure of success Primary funding source = - correct answer taxes (involuntary payments, because there is no ability to match services to those who provide the resource) Budget process = - correct answer primary control device in government US Constitution provides two levels of government - correct answer Federal and State State consitituions similar in that each defines the excutive and legislative braches, establishes political offices, and defines how local governments can be formed. Government Accountability - correct answer based on the belief that the government has a responsibility to report, the public has a right to know, andthe ultimate power belongs to the people. 1) Legal Accountability - correct answer public officials are accountable for the extablishment of controls to ensure that transations are processed properly 2) Performance Accountability - correct answer acting in an efficient, effective, or economic manner. 3) Fiscal Accountability - correct answer raising and allocation of resources to accomplish objectives 4) Operational Accountability - correct answer stewardship of public resources Which branch is accountable to whom? - correct answer Legislative --> to the public Executive --> to legislative and public as well as other governments Interperiod Equity - correct answer current generation of citizens should not be able to shift the burden of paying for current-year services to future taxpayers balanced budget law = current year services must be financed with current year revenues (problem is financial data can be manipulated to achieve this). Fed Gov't not subject to this. Laws prohibiting borrowing - correct answer * only to meet cash flow needs * not for operating purposes * should match the useful life of capital assets Users of financial reports - correct answer 1) Legislators and oversight groups 2) Citizens and taxpayers 3) Investors and Creditors