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