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ACCT 420-CH 12 Correct Answers Latest Version 2024
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ACCT 420-CH 12 Correct Answers Latest Version 2024
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ACCT 420-CH 12 Correct Answers LatestVersion 2024
When does a budget need to be enacted? Answer: before the fiscal year begins
The GASB principle of budgetary reporting states that a budgetary comparison should be presented for
which of the following? Answer: each major special revenue fund that has a legally adopted annual
budget
General Fund
The budgetary principles require that a government accounting system allow a government to
accomplish which of the following? Answer: determine and demonstrate compliance with finance-
related legal and contractual provisions
present fairly and fully disclose the funds and activities of the government unit in conformity with GAAP
Public demand for improved transparency and accounting has resulted in performance measurement
systems Answer: being developed at all levels of government
Which organization reviews budgets and presents distinguished awards to those governments that not
only meet the goals described in traditional government principles, but go beyond that in their
presentation of the budget as a policy document, financial plan, operations guide, and communications
device? Answer: Government Finance Officers Association (GFOA)
In the public sector, a budget Answer: facilitates compliance with laws
should be integrated with the financial accounting system
aids management in operating an organization more effectively
, A common approach to budgeting line-items in which a budget is derived from the current year's budget
by adding or subtracting amounts expected to be required by line items is referred to as ______
budgeting. Answer: incremental
The GASB budgeting and budgetary control principle provides which of the following? Answer: that
common terminology and classification should be used consistently
that the accounting system should provide the basis for appropriate budgetary control
that an annual budget(s) should be adopted by every governmental unit
The budgetary principles require that a government accounting system allow a government to present
fairly and with full disclosure the funds and activities of the government unit in conformity with Answer:
GAAP
Performance measurement systems have been developed at all levels of government because of public
demand for improved ______ and accountability. Answer: transparency
True or false: A majority of the applicants for the GFOA's Distinguished Budget Presentation Award
Program award receive the award. Answer: True
______ budgeting focus on whether organizations spend the amount allotted rather than questioning
the appropriateness in terms of program objectives. Answer: Line-item
Which of the following are characteristics of performance budgeting? Answer: It is linked
conceptually with performance auditing.
It is historically focused on the relation between inputs and outputs of each organizational unit rather
than programs.
It is the type of budgeting in which input of resources is related to output of services.
It is a plan for relating resource inputs to the efficient production of outputs.
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