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Questions and Answers
What is the primary purpose of a budget in governmental accounting?
What is the primary purpose of a budget in governmental accounting?
- To plan for future expenditures (correct)
- To distribute profit among shareholders
- To determine the market value of the government entity
- To track actual expenses
How does the flexibility of budgeting in profit-seeking enterprises differ from that in governmental accounting?
How does the flexibility of budgeting in profit-seeking enterprises differ from that in governmental accounting?
- Governmental budgets are usually flexible throughout the year.
- Profit-seeking enterprises have fixed budgets by law.
- Governmental budgets can be altered without any penalties.
- Profit-seeking enterprises can easily change budgets based on profit forecasts. (correct)
Why do governments rely on legal requirements to ensure budget compliance?
Why do governments rely on legal requirements to ensure budget compliance?
- To maximize profits for shareholders
- To ensure money is used for the appropriate purpose (correct)
- To allow flexibility in budgeting decisions
- To encourage administrators to exceed the budget
What role does the accounting system play in supporting government budgets according to the text?
What role does the accounting system play in supporting government budgets according to the text?
What are the consequences for administrators who alter or exceed a government budget according to the text?
What are the consequences for administrators who alter or exceed a government budget according to the text?
How do government budgets differ from profit-seeking enterprise budgets in terms of changeability?
How do government budgets differ from profit-seeking enterprise budgets in terms of changeability?
What is the primary purpose of a budget?
What is the primary purpose of a budget?
What distinguishes capital budgets from current budgets?
What distinguishes capital budgets from current budgets?
In budget classifications, what is the main difference between a tentative and an enacted budget?
In budget classifications, what is the main difference between a tentative and an enacted budget?
How are general and special budgets differentiated?
How are general and special budgets differentiated?
What is the key advantage of planning for acquisitions several years in advance?
What is the key advantage of planning for acquisitions several years in advance?
Why are current budgets sometimes referred to as recurring expenditures?
Why are current budgets sometimes referred to as recurring expenditures?
What is the first step in the typical budget cycle described in the text?
What is the first step in the typical budget cycle described in the text?
Which stage involves the determination of the expenditure budget ceiling?
Which stage involves the determination of the expenditure budget ceiling?
What is the last stage in the typical budget cycle process described in the text?
What is the last stage in the typical budget cycle process described in the text?
Between which entities does the stage 'allocation of expenditure budget between Federal and Regional governments' occur?
Between which entities does the stage 'allocation of expenditure budget between Federal and Regional governments' occur?
Which stage involves the official submission of the budget to the Council of Peoples‟ Representatives?
Which stage involves the official submission of the budget to the Council of Peoples‟ Representatives?
What is the primary usefulness of FP budgets according to the text?
What is the primary usefulness of FP budgets according to the text?
Why do government administrators often overlook the planning aspects of a budget?
Why do government administrators often overlook the planning aspects of a budget?
According to the GASB, what is one of the principles related to the budget process?
According to the GASB, what is one of the principles related to the budget process?
What are the major components of a budget, as mentioned in the text?
What are the major components of a budget, as mentioned in the text?
Which question summarizes the process of budgeting as presented in the text?
Which question summarizes the process of budgeting as presented in the text?
What is the process of allocating scarce resources to unlimited demands known as, as mentioned in the text?
What is the process of allocating scarce resources to unlimited demands known as, as mentioned in the text?
What is the main difference between incremental budgeting and zero-based budgeting?
What is the main difference between incremental budgeting and zero-based budgeting?
Which of the following is a drawback of incremental budgeting?
Which of the following is a drawback of incremental budgeting?
What is the primary idea behind Zero-Based Budgeting (ZBB)?
What is the primary idea behind Zero-Based Budgeting (ZBB)?
Why is incremental budgeting likely to lead to inefficient resource allocation?
Why is incremental budgeting likely to lead to inefficient resource allocation?
How does Zero-Based Budgeting (ZBB) ensure continual evaluation of programs and services?
How does Zero-Based Budgeting (ZBB) ensure continual evaluation of programs and services?
Which statement best describes the approach of incremental budgeting?
Which statement best describes the approach of incremental budgeting?
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