CPPB ACTUAL TEST PAPER COMPLETE
QUESTIONS AND ANSWERS FULL
SOLUTION
●● allotment
Answer: controls the rate of spending authorized by an appropriation
●● allocation
Answer: controls specific use of the monies appropriated
●● cash basis accounting
Answer: income is not counted until cash (or check) is actually received,
and expenses are not counted until they are actually paid.
●● accrual basis accounting
Answer: Transactions are recognized at the time they are incurred, as
opposed to when cash is received or spent.
●● encumber funds
Answer: To set aside or commit funds for a specified future expenditure.
●● policy document
,Answer: a good budget should articulate the program priorities and goals
●● operations guide
Answer: a good budget should indicate the allocation of resources and
the performance objectives and measures of the various departments,
programs, and activities.
●● financial plan
Answer: a good financial plant or budget should indicate the sources of
revenue or any debt financing
●● communications device
Answer: a good budget should stimulate dialogue among the public
about important budge issues
●● fund
Answer: an independent fiscal entity with assets, liabilities, reserves, a
residual balance or equity, and revenues and expenditures for
undertaking activities.
●● expendable funds
Answer: the authorization for spending expires at the end of the fiscal
period
,●● non-expendable or revolving funds
Answer: spending beyond the fiscal year is allowed with reauthorization
●● GAAP (generally accepted accounting principles)
Answer: uniform minimum standard for financial accounting and
recording, encompassing the conventions, rules, and procedures that
define accepted accounting principles.
●● governmental funds (how are they used?)
Answer: finance the activities most citizens associate with governments
(police, fire, procurement, public works)
●● governmental funds (breakdown)
Answer: - general funds
- special revenue funds
- capital project funds
- debt service funds
●● general funds
Answer: used to track revenues and expenditures that support all
services not assigned to other funds
●● special revenue funds
, Answer: provide services financed from various specifically designated
revenue sources, such as recreation fees used to support a specific
activity
●● capital project funds
Answer: used to acquire major assets with a useful life of more than one
year, which may be financed by some form of long-term debt
●● debt service fund
Answer: receive resources from other funds, taxes, grants, or proceeds
from long-term debt and are used to pay the principal and interest on the
debt.
●● proprietary funds (when are they used?)
Answer: used when governments engage in activities similar to private
business
●● proprietary funds (what is the breakdown?)
Answer: - enterprise funds
- internal service funds
●● enterprise funds
QUESTIONS AND ANSWERS FULL
SOLUTION
●● allotment
Answer: controls the rate of spending authorized by an appropriation
●● allocation
Answer: controls specific use of the monies appropriated
●● cash basis accounting
Answer: income is not counted until cash (or check) is actually received,
and expenses are not counted until they are actually paid.
●● accrual basis accounting
Answer: Transactions are recognized at the time they are incurred, as
opposed to when cash is received or spent.
●● encumber funds
Answer: To set aside or commit funds for a specified future expenditure.
●● policy document
,Answer: a good budget should articulate the program priorities and goals
●● operations guide
Answer: a good budget should indicate the allocation of resources and
the performance objectives and measures of the various departments,
programs, and activities.
●● financial plan
Answer: a good financial plant or budget should indicate the sources of
revenue or any debt financing
●● communications device
Answer: a good budget should stimulate dialogue among the public
about important budge issues
●● fund
Answer: an independent fiscal entity with assets, liabilities, reserves, a
residual balance or equity, and revenues and expenditures for
undertaking activities.
●● expendable funds
Answer: the authorization for spending expires at the end of the fiscal
period
,●● non-expendable or revolving funds
Answer: spending beyond the fiscal year is allowed with reauthorization
●● GAAP (generally accepted accounting principles)
Answer: uniform minimum standard for financial accounting and
recording, encompassing the conventions, rules, and procedures that
define accepted accounting principles.
●● governmental funds (how are they used?)
Answer: finance the activities most citizens associate with governments
(police, fire, procurement, public works)
●● governmental funds (breakdown)
Answer: - general funds
- special revenue funds
- capital project funds
- debt service funds
●● general funds
Answer: used to track revenues and expenditures that support all
services not assigned to other funds
●● special revenue funds
, Answer: provide services financed from various specifically designated
revenue sources, such as recreation fees used to support a specific
activity
●● capital project funds
Answer: used to acquire major assets with a useful life of more than one
year, which may be financed by some form of long-term debt
●● debt service fund
Answer: receive resources from other funds, taxes, grants, or proceeds
from long-term debt and are used to pay the principal and interest on the
debt.
●● proprietary funds (when are they used?)
Answer: used when governments engage in activities similar to private
business
●● proprietary funds (what is the breakdown?)
Answer: - enterprise funds
- internal service funds
●● enterprise funds
