CHAPTER 12: BUDGETING AND PERFORMANCE MEASUREMENT STUDY GUIDE |
COMPLETE EXAM REVIEW QUESTIONS AND ANSWERS 2026/2027
The GASB budgeting and budgetary control principle provides which of the following? - ANS ✔✔- that
the accounting system should provide the basis for appropriate budgetary control
- that an annual budget(s) should be adopted by every governmental unit
- that common terminology and classification should be used consistently
Which of the following provides a basis for adapting required budgetary estimates of proposed
expenditures to broader management use? - ANS ✔✔the legal requirement that administrators of
governments submit appropriation requests to the legislative bodies in budget format
The type of entrepreneurial budgeting that articulates government-wide goals, such as "improve
community safety" and all departments or units cast their budget requests in terms of advancing those
goals is referred to as which of the following? - ANS ✔✔budgeting for outcomes
An administration's request for authorization to incur liabilities for goods, services, and facilities for
specified purposes is a(n) ______ budget. - ANS ✔✔appropriations
To facilitate budget preparation, experienced budget officers generally keep for each revenue source files
containing all of the following except ______. - ANS ✔✔remittance advices
Budgets prepared by departmental administrators should be reviewed by the central administration
before submission to the legislative branch for which of the following reasons? - ANS ✔✔- to make sure
that enough is being spent on certain programs
- because the total of departmental requests frequently exceeds the total of estimated revenues
Accounting principles for proprietary funds of governments require the cost of assets expected to
benefit more than one period to be treated as a ______. - ANS ✔✔balance sheet item
Sources of revenues and other financial inflows available to a given local government ______. - ANS ✔✔-
often include property and sales taxes
- may be limited for some sources
Revenue source files generally contain which of the following? - ANS ✔✔- a copy of subsequent
legislation pertaining to the source
- a copy of legislation authorizing the source
A very small government that has few receipts and infrequent disbursements may be able to plan
temporary investments and short-term borrowings on the basis of cash budgets prepared ______. - ANS
✔✔for periods longer than 1 month
To provide control for the budget, it is necessary at intervals throughout the year to compare which of
the following? - ANS ✔✔- actual disbursements with budgeted disbursements
- actual receipts with budgeted receipts
COMPLETE EXAM REVIEW QUESTIONS AND ANSWERS 2026/2027
The GASB budgeting and budgetary control principle provides which of the following? - ANS ✔✔- that
the accounting system should provide the basis for appropriate budgetary control
- that an annual budget(s) should be adopted by every governmental unit
- that common terminology and classification should be used consistently
Which of the following provides a basis for adapting required budgetary estimates of proposed
expenditures to broader management use? - ANS ✔✔the legal requirement that administrators of
governments submit appropriation requests to the legislative bodies in budget format
The type of entrepreneurial budgeting that articulates government-wide goals, such as "improve
community safety" and all departments or units cast their budget requests in terms of advancing those
goals is referred to as which of the following? - ANS ✔✔budgeting for outcomes
An administration's request for authorization to incur liabilities for goods, services, and facilities for
specified purposes is a(n) ______ budget. - ANS ✔✔appropriations
To facilitate budget preparation, experienced budget officers generally keep for each revenue source files
containing all of the following except ______. - ANS ✔✔remittance advices
Budgets prepared by departmental administrators should be reviewed by the central administration
before submission to the legislative branch for which of the following reasons? - ANS ✔✔- to make sure
that enough is being spent on certain programs
- because the total of departmental requests frequently exceeds the total of estimated revenues
Accounting principles for proprietary funds of governments require the cost of assets expected to
benefit more than one period to be treated as a ______. - ANS ✔✔balance sheet item
Sources of revenues and other financial inflows available to a given local government ______. - ANS ✔✔-
often include property and sales taxes
- may be limited for some sources
Revenue source files generally contain which of the following? - ANS ✔✔- a copy of subsequent
legislation pertaining to the source
- a copy of legislation authorizing the source
A very small government that has few receipts and infrequent disbursements may be able to plan
temporary investments and short-term borrowings on the basis of cash budgets prepared ______. - ANS
✔✔for periods longer than 1 month
To provide control for the budget, it is necessary at intervals throughout the year to compare which of
the following? - ANS ✔✔- actual disbursements with budgeted disbursements
- actual receipts with budgeted receipts
