GFOA Budget Exam Questions With Complete Solutions
"expenditures for additional capital equipment shall be made
only to enhance employee productivity, improve quality of
service, or expand a scope of service. existing equipment shall
be replaced when needed to ensure the optimal productivity of
city employees" is an example of what? Correct Answers Policy
on capital equipment purchases
`who is referred to as "involuntary resource providers? Correct
Answers citizens
a budget as an operation guide has what components? Correct
Answers 1. describe the purpose and operating objective of
each department
2. the department narrative should report the organization's
accomplishments of the current operating year and operating
objectives for the upcoming budget year
3. the department presentation must reflect the staffing
component in terms of positions and the lines of supervision as
well as the financial resources appropriated for the department's
use
4. relevant performance measures that ideally are linked to the
department's operations
According to Chapter 102, how must the budget itemize
expenditures? Correct Answers a clear comparison between the
proposed budget and prior year actuals
,According to Chapter 102, how often does a budget have to be
prepared? Correct Answers Annually
According to Chapter 102, the budget must include one of the
following six items? Correct Answers 1. The outstanding
obligations (or debt)
2. the cash (Fund Balance) on hand to the credit of each fund
3. the funds received from all sources the preceding year
4. the funds available from all sources during the ensuring year
5. the estimated revenue available to cover the proposed budget
6. the estimated tax rate required to cover the proposed budget
According to Chapter 102, who is the budget officer? Correct
Answers 1. City Manager
2. Mayor if no City Manager
According to which organization is there a criterion that requires
the document to describe short term factors influencing the
budget? Correct Answers DBP
According to which organization is there a criterion that requires
the document to include a summary message that outlines
priorities and issues for upcoming budget year and how these
items are addressed in the budget? Correct Answers DBP
According to which RBP policy, governments should consider
adopting a policy establishing guidelines for fees and charges?
Correct Answers RBP #4.2
, Along with the Distinguished Budget Presentation and
Recommended Budget Practices, what should the city manager
consult? Correct Answers the city charters
Budgets without fund balances that do not include fund balances
deny stakeholders what? Correct Answers a critical perspective
Descriptions should also include what? Correct Answers
significant changes from eyar to year
Descriptions should include the components of the revenue aka?
Correct Answers (rate multiplied by quanity)
Does texas effectively limits the ability of cities to increase
property tax rate over what? Correct Answers the net effective
rate
For governmental functions, GAAP requires what time of focus?
Correct Answers Measurement focus/basis of accounting
(MFBA) to be current financial resources and modified accrual
accounting
how can cities keep a pay as you go basis for major projects?
Correct Answers build fund balance over time for future use
How can interest income be calculated for the long term plan?
Correct Answers Assumed rate * ending fund balances
how can you calculate personal service costs for each year?
Correct Answers FTE * average personnel costs (salary plus all
benefits)
"expenditures for additional capital equipment shall be made
only to enhance employee productivity, improve quality of
service, or expand a scope of service. existing equipment shall
be replaced when needed to ensure the optimal productivity of
city employees" is an example of what? Correct Answers Policy
on capital equipment purchases
`who is referred to as "involuntary resource providers? Correct
Answers citizens
a budget as an operation guide has what components? Correct
Answers 1. describe the purpose and operating objective of
each department
2. the department narrative should report the organization's
accomplishments of the current operating year and operating
objectives for the upcoming budget year
3. the department presentation must reflect the staffing
component in terms of positions and the lines of supervision as
well as the financial resources appropriated for the department's
use
4. relevant performance measures that ideally are linked to the
department's operations
According to Chapter 102, how must the budget itemize
expenditures? Correct Answers a clear comparison between the
proposed budget and prior year actuals
,According to Chapter 102, how often does a budget have to be
prepared? Correct Answers Annually
According to Chapter 102, the budget must include one of the
following six items? Correct Answers 1. The outstanding
obligations (or debt)
2. the cash (Fund Balance) on hand to the credit of each fund
3. the funds received from all sources the preceding year
4. the funds available from all sources during the ensuring year
5. the estimated revenue available to cover the proposed budget
6. the estimated tax rate required to cover the proposed budget
According to Chapter 102, who is the budget officer? Correct
Answers 1. City Manager
2. Mayor if no City Manager
According to which organization is there a criterion that requires
the document to describe short term factors influencing the
budget? Correct Answers DBP
According to which organization is there a criterion that requires
the document to include a summary message that outlines
priorities and issues for upcoming budget year and how these
items are addressed in the budget? Correct Answers DBP
According to which RBP policy, governments should consider
adopting a policy establishing guidelines for fees and charges?
Correct Answers RBP #4.2
, Along with the Distinguished Budget Presentation and
Recommended Budget Practices, what should the city manager
consult? Correct Answers the city charters
Budgets without fund balances that do not include fund balances
deny stakeholders what? Correct Answers a critical perspective
Descriptions should also include what? Correct Answers
significant changes from eyar to year
Descriptions should include the components of the revenue aka?
Correct Answers (rate multiplied by quanity)
Does texas effectively limits the ability of cities to increase
property tax rate over what? Correct Answers the net effective
rate
For governmental functions, GAAP requires what time of focus?
Correct Answers Measurement focus/basis of accounting
(MFBA) to be current financial resources and modified accrual
accounting
how can cities keep a pay as you go basis for major projects?
Correct Answers build fund balance over time for future use
How can interest income be calculated for the long term plan?
Correct Answers Assumed rate * ending fund balances
how can you calculate personal service costs for each year?
Correct Answers FTE * average personnel costs (salary plus all
benefits)
