Governmental Budget Classifications Quiz

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What is the key difference between a general budget and a special budget?

General budgets are more complex to prepare and administer, while special budgets are simpler.

General budgets are prepared by the executive branch, while special budgets are prepared by the legislative branch.

General budgets are for governmental activities, while special budgets are for other funds. (correct)

General budgets have a fixed total dollar amount, while special budgets have a flexible budget.

What is the main advantage of a fixed budget over a flexible budget?

Fixed budgets are simpler to prepare and administer, and are more understood. (correct)

Fixed budgets allow for greater discretion of executives and their subordinates.

Fixed budgets are more realistic when changes in quantities of goods or services occur.

Fixed budgets can be more easily revised by the legislative branch prior to approval.

Which of the following statements about flexible budgets is correct?

Flexible budgets are more important for legislation control to limit the discretion of executives.

Flexible budgets are less realistic when changes in quantities of goods or services occur.

Flexible budgets allow the dollar amount to increase if more units of goods and services are desired. (correct)

Flexible budgets fix the total dollar amount and cannot be exceeded.

Who is typically responsible for preparing the budget?

The executive branch is responsible for preparing the budget, though the legislature may revise it prior to approval. Signup and view all the answers

What is the key difference between governmental and non-governmental budgets mentioned in the text?

Governmental budgets are called 'general' budgets, while non-governmental budgets are called 'special' budgets. Signup and view all the answers

What is the main purpose of a fixed budget, according to the text?

To limit the discretion of executives and their subordinates through legislation control. Signup and view all the answers

What is the main purpose of the performance budget approach described in the text?

To relate the input of governmental resources to the output of governmental services Signup and view all the answers

What is the key step in determining the budget for a government service or activity?

Multiplying the units of service by the cost per unit Signup and view all the answers

What is the main limitation of the performance budget approach described in the text?

Both a and b Signup and view all the answers

How does the Planning-Programming-Budgeting (PPB) approach differ from the performance budget approach described in the text?

All of the above Signup and view all the answers

What is the key advantage of the PPB approach over the performance budget approach mentioned in the text?

PPB emphasizes the government's overall program, rather than a specific department Signup and view all the answers

What is the primary focus of performance budgeting?

Evaluating the outcomes or results achieved by a program or activity Signup and view all the answers

Which of the following is NOT a characteristic of modern (rational) approaches to budgeting?

Emphasizing the details of spending for particular departments Signup and view all the answers

Which of the following statements best describes the concept of 'inputs' in the context of modern budgeting approaches?

The resources that go into providing goods or services Signup and view all the answers

What is the primary concern of modern (rational) approaches to budgeting regarding outputs?

Evaluating the relationship between outputs and long-term goals Signup and view all the answers

Which of the following statements best represents the 'big-picture' idea emphasized in modern budgeting approaches?

Lawmaking bodies should focus on broad policy objectives rather than details of spending Signup and view all the answers

Governmental Budget Classifications Quiz

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