CGFO - Financial Planning and
Budgeting Exam Questions and Answers
Graded A+
Budget Process - Correct answer-Activities that encompass the development,
implementation, and evaluation of a plan of provision of services and capital assets
Allotment - Correct answer-Administrative distribution by time period
Priority Based Budgeting - Correct answer-Alignment of entity's budget on a
program-by-program basis to match priorities of governing body
Final Appropriated Budget - Correct answer-All amendments through year
Original Budget - Correct answer-As approved by legislative beginning of year
Budget Authority - Correct answer-Authority to enter in to financial obligations
(spend, borrow, contract) in advance of appropriation
Act of 1974 - Correct answer-Basis for deferral budget: act that established
process-congressional budget and impoundment control
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, Program Budget - Correct answer-Budget focusing on the types of services
provided with subsidiary focus on objects of expenditures
Operating Budget - Correct answer-Budget for ongoing activities that are repeated
year after year (recurring)
Line Item Budget - Correct answer-Budget prepared on the basis of object of
expenditure categories
Recission - Correct answer-Cancellation of budget authority (must be approved by
both houses)
Zero Based Budgeting - Correct answer-Combines program and budgeting by
objective - includes examination of different budget levels and probable influence
on meeting objectives including "what if's" questions bases budget distribution
Executive Budget - Correct answer-Compilation of information, proposals, and
estimates prepared and submitted by the chief executive to the legislative body
(GASB)
Budget - Correct answer-Financial plan; service goals with associated costs and
means for financing
Incremental - Correct answer-Focuses on changes to individual objects of
expenditure over current budget level (line item budget)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Budgeting Exam Questions and Answers
Graded A+
Budget Process - Correct answer-Activities that encompass the development,
implementation, and evaluation of a plan of provision of services and capital assets
Allotment - Correct answer-Administrative distribution by time period
Priority Based Budgeting - Correct answer-Alignment of entity's budget on a
program-by-program basis to match priorities of governing body
Final Appropriated Budget - Correct answer-All amendments through year
Original Budget - Correct answer-As approved by legislative beginning of year
Budget Authority - Correct answer-Authority to enter in to financial obligations
(spend, borrow, contract) in advance of appropriation
Act of 1974 - Correct answer-Basis for deferral budget: act that established
process-congressional budget and impoundment control
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Program Budget - Correct answer-Budget focusing on the types of services
provided with subsidiary focus on objects of expenditures
Operating Budget - Correct answer-Budget for ongoing activities that are repeated
year after year (recurring)
Line Item Budget - Correct answer-Budget prepared on the basis of object of
expenditure categories
Recission - Correct answer-Cancellation of budget authority (must be approved by
both houses)
Zero Based Budgeting - Correct answer-Combines program and budgeting by
objective - includes examination of different budget levels and probable influence
on meeting objectives including "what if's" questions bases budget distribution
Executive Budget - Correct answer-Compilation of information, proposals, and
estimates prepared and submitted by the chief executive to the legislative body
(GASB)
Budget - Correct answer-Financial plan; service goals with associated costs and
means for financing
Incremental - Correct answer-Focuses on changes to individual objects of
expenditure over current budget level (line item budget)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
