Podcast
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 provide flexibility in spending
- To ensure that money is used for the appropriate purpose (correct)
- To guide resources into the right usage
- To maximize profit
How does budgeting differ between profit-seeking enterprises and governments?
How does budgeting differ between profit-seeking enterprises and governments?
- Profit-seeking enterprises face severe penalties for non-compliance with the budget
- Government budgets are more flexible than profit-seeking enterprise budgets
- Profit-making enterprises rely on legal requirements for budgeting
- Government budgets are generally unchangeable once fixed by law (correct)
Why do governments rely on legal requirements to control budget usage?
Why do governments rely on legal requirements to control budget usage?
- To guide resources into the right usage
- To ensure that money is not used for the appropriate purpose (correct)
- To provide flexibility in budgeting
- To maximize profits
What are the consequences of altering or exceeding a government budget?
What are the consequences of altering or exceeding a government budget?
How does the inflexibility of government budgets impact governmental accounting practices?
How does the inflexibility of government budgets impact governmental accounting practices?
In profit-seeking enterprises, how does budgeting usually differ from governmental budgeting?
In profit-seeking enterprises, how does budgeting usually differ from governmental budgeting?
What is the main difference between a fixed budget and a flexible budget?
What is the main difference between a fixed budget and a flexible budget?
Which type of budget takes the previous year's budget as a base and adjusts it by adding or subtracting a percentage for the current year?
Which type of budget takes the previous year's budget as a base and adjusts it by adding or subtracting a percentage for the current year?
What is the second major item in the revenue budget?
What is the second major item in the revenue budget?
Under which approach to budgeting is the assumption made that historical budget allocations reflected organizational priorities?
Under which approach to budgeting is the assumption made that historical budget allocations reflected organizational priorities?
How is the recurrent budget, which covers current expenditures, primarily financed?
How is the recurrent budget, which covers current expenditures, primarily financed?
Which type of budget is more appropriate for governmental goods or services according to the text?
Which type of budget is more appropriate for governmental goods or services according to the text?
What does the capital budget primarily cover?
What does the capital budget primarily cover?
What are budgets prepared by executive and legislative bodies respectively called?
What are budgets prepared by executive and legislative bodies respectively called?
Where does the government get most of its funds for the capital budget?
Where does the government get most of its funds for the capital budget?
In which type of funds are flexible budgets more appropriate?
In which type of funds are flexible budgets more appropriate?
Which type of loans are used for mostly financing capital projects in Ethiopia?
Which type of loans are used for mostly financing capital projects in Ethiopia?
What does the annual period over which budgets are prepared called?
What does the annual period over which budgets are prepared called?
What is the main focus of budgeting on the expenditure side?
What is the main focus of budgeting on the expenditure side?
How are budget structures defined in the context of government finance?
How are budget structures defined in the context of government finance?
What does the revenue budget in Ethiopia typically include?
What does the revenue budget in Ethiopia typically include?
In the context of the revenue budget, what is 'ordinary revenue' composed of?
In the context of the revenue budget, what is 'ordinary revenue' composed of?
Which of the following is NOT a component of tax revenue according to the text?
Which of the following is NOT a component of tax revenue according to the text?
What is a key feature of the classification of budget data mentioned in the text?
What is a key feature of the classification of budget data mentioned in the text?
What is the main focus of Performance budgeting?
What is the main focus of Performance budgeting?
In Planning-Programming-budgeting (PPB), what is evaluated after formulating long-range plans?
In Planning-Programming-budgeting (PPB), what is evaluated after formulating long-range plans?
Why does PPB consider both the Ministry of Health and the Ministry of Education in its evaluation?
Why does PPB consider both the Ministry of Health and the Ministry of Education in its evaluation?
What is the purpose of a government budget?
What is the purpose of a government budget?
When does the fiscal year start in Ethiopia?
When does the fiscal year start in Ethiopia?
How does PPB differ from Performance budgeting?
How does PPB differ from Performance budgeting?
