1. Cash budgets are best described by which of the following statements?

Select one:

a. Cash budgets are an internal document used only by department heads and managers

b. Cash budgets are not needed because they do not require the approval of legislative bodies

c. Cash budgets are not needed because legislatively-approved budgets are sufficient to manage the use of governmental resources

d. Cash budgets are needed because they provide the details necessary to support certain approaches to budgeting like performance budgeting

e. Cash budgets are needed to plan for borrowing and investing because the timing of cash inflows does not necessarily match the timing of cash outflows

2. Which of the following statements is a correct analysis of the situation that occurs when a chief executive submits a balanced budget to a legislative body?

Select one:

a. The budget is balanced based on the full accrual basis of accounting

b. The budget is balanced in accordance with generally accepted accounting principles

c. Proposed expenditures match the previous year's expenditures

d. Proposed expenditures do not exceed estimated monies available for the year

e. Proposed expenditures do not exceed estimated tax revenues to be raised during the year

3. Which of the following classifications will not appear in the annual budget for a General Fund?

Select one:

a. Capital outlay

b. Debt service

c. Depreciation

d. Transfers to or from other funds

e. Current operating

4. Which of the following approaches to budgeting is most likely to contain the details of salaries (such as number of personnel within each position) as well as the details of each type of expenditure other than salaries (such as supplies and travel)?

Select one:

a. zero-based budgeting approach

b. Object-of-expenditure approach

c. Performance approach

d. Planning-programming-budgeting approach

5. Which of the following is an estimated amount?

Select one:

a. A user fee

b. An encumbrance

c. An expenditure

d. An appropriation

e. A tax levy

6. The legal level of budgetary control is best described by which of the following statements?

Select one:

a. The maximum amount thta can be spent without incurring an unfavorable variance

b. The classification or subclassification at which expenditures cannot exceed appropriations

c. The status of the budget officer within the hierarchy of top government officials

d. The sum of favorable budget variances minus the sum of unfavorable budget variances

7. If a city accountant was trying to estimate the sales tax collections for a year in preparing a city's budget, which of the following would be the most important item to consider in arriving at that estimate?

Select one:

a. The amount expected to be budgeted on the highway maintenance program

b. The projected number of housing starts

c. The number of new businesses to be opened during the year

d. The projected elementary school enrollment

e. The projected volume of sales subject to the sales tax

8. At the end of a fiscal year, if actual revenues are less than estimated revenues and expenditures are less than appropriations (by the same amount), which of the following will occur?

Select one:

a. The actual change in fund balance will be less than the budgeted change in fund balance

b. Actual fund balance will remain unchanged

c. The actual change in fund balance will equal the budgeted change in fund balance

d. The Estimated Fund Balance account will be adjusted for the difference

e. The actual change in fund balance will exceed the budgeted change in fund balance

9. Which of the following issues would a city manager be most concerned about when looking at the cash forecast?

Select one:

a. Anticipated short-term borrowing to cover the end of the month payroll

b. The estimate of property tax collections from delinquent accounts

c. The total amount to be spent for Fire Department operations in the current year

d. Anticipated police overtime pay resulting from the 4th of July parade

e. The expected cost of bridge repairs in the coming five years

10. Which of the following activities occurs closest to the completion of the budgetary process?

Select one:

a. Preparing revenue estimates

b. Preparing the budget calendar

c. Holding public budget hearings

d. Revising the budget calendar

e. Preparing the capital outlay request summary