Governmental Accounting Chapter 3
questions with answers.
Budgets are intended to carry out what three functions? ANS -Planning, controlling and administering,
and reporting and evaluating.
Appropriation Budgets ANS -Are concerned mainly with operating revenues and expenditures.
Capital Budgets ANS -Focus on the acquisition and construction of long-term assets.
Flexible Budgets ANS -Relate costs to outputs and are thereby intended to help control costs, especially
those of business-type activities.
Object Classification Budget ANS -Characterized by the expenditure classification that categories objects
- such as the type of goods or services to be acquired.
Program Budgets ANS -Resources and results are identified with programs rather than traditional
organizational units, and expenditures are typically categorized by activity rather than by object.
Allotments or apportionments ANS -Both allotments and apportionments are periodic allocations of
funds to departments or agencies, usually made by the chief executive's office, to ensure that an entire
year's apportionment is not dissipated early in the period covered by the budget.
Encumbrances ANS -Commitment to purchase goods or services.
Differences in cash basis accounting: ANS -As previously noted, governments often prepare their
budgets on a cash or near-cash basis, whereas their financial statements must be prepared on a
modified accrual basis.
questions with answers.
Budgets are intended to carry out what three functions? ANS -Planning, controlling and administering,
and reporting and evaluating.
Appropriation Budgets ANS -Are concerned mainly with operating revenues and expenditures.
Capital Budgets ANS -Focus on the acquisition and construction of long-term assets.
Flexible Budgets ANS -Relate costs to outputs and are thereby intended to help control costs, especially
those of business-type activities.
Object Classification Budget ANS -Characterized by the expenditure classification that categories objects
- such as the type of goods or services to be acquired.
Program Budgets ANS -Resources and results are identified with programs rather than traditional
organizational units, and expenditures are typically categorized by activity rather than by object.
Allotments or apportionments ANS -Both allotments and apportionments are periodic allocations of
funds to departments or agencies, usually made by the chief executive's office, to ensure that an entire
year's apportionment is not dissipated early in the period covered by the budget.
Encumbrances ANS -Commitment to purchase goods or services.
Differences in cash basis accounting: ANS -As previously noted, governments often prepare their
budgets on a cash or near-cash basis, whereas their financial statements must be prepared on a
modified accrual basis.
