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