Untitled Quiz

Study Notes

Planning is an approach to problem-solving, with short-term and long-term solutions.
It is a decision-making process used to guide future needs.
It sets the direction for government actions and involves:
- visualizing future scenarios
- making estimations
- identifying issues, needs, and potential problems
- analyzing and evaluating alternative solutions
- scheduling actions
- estimating funds and resources
- initiating timely actions
- being prepared for changing conditions and unforeseen events.

Budget is an action plan for government programs and activities.
Budgeting is the process of:
- estimating anticipated revenues
- proposing expenditures
- outlining the schedule of actions
- identifying the means of financing those activities.
Budgeting involves a series of activities that connect expenditures to goals.

Expenditure Control: Restraining spending within financial limits and ensuring legal transactions. Expenditures must align with appropriations.
Management and Efficiency: Improving managerial control and operational efficiency. This focuses on government performance, with the budget serving as a control device for operational efficiency.
Planning for Service Requirements: Utilizing budget planning for decision-making to ensure continuity of activities, develop new programs, and allocate resources among government operations.

Equilibrium: Ensuring a balance between revenue sources and fund uses. This involves allocating funds equitably.
Comprehensiveness: Including all revenue and expenditure, showing any surplus available for debt reduction or the deficit requiring new revenue measures or borrowing.
Annuality: Covering a specific period of time, typically a fiscal year from January 1 to December 31.

Government activities affect the lives of citizens and require substantial resources, demanding effective control and utilization.
Accounting plays a crucial role in evaluating government agencies' performance.
Public managers rely on financial reports generated by accounting systems.
Accounting is the process of managing financial transactions, generating and communicating financial information to users. It involves recording, classifying, and summarizing financial transactions to communicate operational results.
Government Accounting is the specific accounting system used by government offices. It records and reports financial transactions, demonstrating how public funds are collected and utilized for the public good. It systematically records government revenue and expenditure, demonstrating the receipt and payment position of public funds.