CPPB
2024 UPDATE MOST TESTED
QUESTIONS/COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+
cash basis accounting - (correct 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 - (correct answer) Transactions are
recognized at the time they are incurred, as opposed to when cash is
received or spent.
encumber funds - (correct answer) To set aside or commit funds for
a specified future expenditure.
policy document - (correct answer) a good budget should articulate
the program priorities and goals
operations guide - (correct answer) a good budget should indicate
the allocation of resources and the performance objectives and
measures of the various departments, programs, and activities.
budgeting - (correct answer) the allocation of scarce resources
among competing demands
,allotment - (correct answer) controls the rate of spending
authorized by an appropriation
allocation - (correct answer) controls specific use of the monies
appropriated
financial plan - (correct answer) a good financial plant or budget
should indicate the sources of revenue or any debt financing
communications device - (correct answer) a good budget should
stimulate dialogue among the public about important budge issues
fund - (correct answer) an independent fiscal entity with assets,
liabilities, reserves, a residual balance or equity, and revenues and
expenditures for undertaking activities.
expendable funds - (correct answer) the authorization for spending
expires at the end of the fiscal period
non-expendable or revolving funds - (correct answer) spending
beyond the fiscal year is allowed with reauthorization
,GAAP (generally accepted accounting principles) - (correct 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?) - (correct answer) finance
the activities most citizens associate with governments (police, fire,
procurement, public works)
governmental funds (breakdown) - (correct answer) - general funds
- special revenue funds
- capital project funds
- debt service funds
general funds - (correct answer) used to track revenues and
expenditures that support all services not assigned to other funds
special revenue funds - (correct answer) provide services financed
from various specifically designated revenue sources, such as
recreation fees used to support a specific activity
capital project funds - (correct 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 - (correct 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?) - (correct answer) used
when governments engage in activities similar to private business
proprietary funds (what is the breakdown?) - (correct answer) -
enterprise funds
- internal service funds
enterprise funds - (correct answer) control various utilities (water,
water reclamation, storm water, electric) and other entities providing
service financed through user charges
internal service funds - (correct answer) used by governmental
organizations that provide services to other units of the government by
charging fees to cover their operating costs
fiduciary funds - (correct answer) allow the government to act as a
custodian of assets that must be disbursed to individual, private, and
public entities, or to other funds. Ex: pension funds and the collection
of lottery proceeds for distribution.
2024 UPDATE MOST TESTED
QUESTIONS/COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+
cash basis accounting - (correct 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 - (correct answer) Transactions are
recognized at the time they are incurred, as opposed to when cash is
received or spent.
encumber funds - (correct answer) To set aside or commit funds for
a specified future expenditure.
policy document - (correct answer) a good budget should articulate
the program priorities and goals
operations guide - (correct answer) a good budget should indicate
the allocation of resources and the performance objectives and
measures of the various departments, programs, and activities.
budgeting - (correct answer) the allocation of scarce resources
among competing demands
,allotment - (correct answer) controls the rate of spending
authorized by an appropriation
allocation - (correct answer) controls specific use of the monies
appropriated
financial plan - (correct answer) a good financial plant or budget
should indicate the sources of revenue or any debt financing
communications device - (correct answer) a good budget should
stimulate dialogue among the public about important budge issues
fund - (correct answer) an independent fiscal entity with assets,
liabilities, reserves, a residual balance or equity, and revenues and
expenditures for undertaking activities.
expendable funds - (correct answer) the authorization for spending
expires at the end of the fiscal period
non-expendable or revolving funds - (correct answer) spending
beyond the fiscal year is allowed with reauthorization
,GAAP (generally accepted accounting principles) - (correct 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?) - (correct answer) finance
the activities most citizens associate with governments (police, fire,
procurement, public works)
governmental funds (breakdown) - (correct answer) - general funds
- special revenue funds
- capital project funds
- debt service funds
general funds - (correct answer) used to track revenues and
expenditures that support all services not assigned to other funds
special revenue funds - (correct answer) provide services financed
from various specifically designated revenue sources, such as
recreation fees used to support a specific activity
capital project funds - (correct 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 - (correct 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?) - (correct answer) used
when governments engage in activities similar to private business
proprietary funds (what is the breakdown?) - (correct answer) -
enterprise funds
- internal service funds
enterprise funds - (correct answer) control various utilities (water,
water reclamation, storm water, electric) and other entities providing
service financed through user charges
internal service funds - (correct answer) used by governmental
organizations that provide services to other units of the government by
charging fees to cover their operating costs
fiduciary funds - (correct answer) allow the government to act as a
custodian of assets that must be disbursed to individual, private, and
public entities, or to other funds. Ex: pension funds and the collection
of lottery proceeds for distribution.
