Public budgeting
  • 1. Which budget focuses on the estimated revenues and expenditures for the upcoming fiscal year?
A) Capital budget
B) Operating budget
C) Zero-based budget
D) Cash budget
  • 2. What is the purpose of a line-item budget?
A) To forecast revenue
B) To maximize profits
C) To allocate funds based on specific categories
D) To reduce expenditures
  • 3. What does the acronym PPBS stand for in public budgeting?
A) Profit Projection Budgeting System
B) Public Partnership Budgeting System
C) Performance-based Budgeting Strategy
D) Planning, Programming, Budgeting System
  • 4. What is the purpose of cost-benefit analysis in public budgeting?
A) To focus on short-term profitability only
B) To ignore the financial impact of a project
C) To minimize costs regardless of benefits
D) To evaluate whether the benefits of a project outweigh the costs
  • 5. What is the primary difference between operating and capital budgets?
A) Capital budgets result in profit generation
B) Operating budgets are reviewed annually, while capital budgets are reviewed quarterly
C) Operating budgets cover day-to-day expenses, while capital budgets cover long-term investments
D) Operating budgets are static, while capital budgets are dynamic
  • 6. Which budgeting approach focuses on setting budget targets based on past performance?
A) Zero-based budgeting
B) Incremental budgeting
C) Performance-based budgeting
D) Activity-based budgeting
  • 7. What is the relationship between public budgeting and fiscal policy?
A) Fiscal policy replaces public budgeting
B) Public budgeting has no impact on fiscal policy
C) Public budgeting is a tool used to implement fiscal policy decisions
D) Public budgeting is solely focused on revenues
  • 8. What is the main benefit of multi-year budgeting in the public sector?
A) Short-term cost reduction
B) Operational efficiency
C) Immediate revenue increase
D) Long-term planning and stability
  • 9. Which type of budgeting involves setting spending limits without exceeding revenues?
A) Balanced budgeting
B) Surplus budgeting
C) Debt budgeting
D) Deficit budgeting
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