CBS CBS Government & Public Sector Budgeting 2

Question 1

Performance-based budgeting links funding allocations to:

Accepted Answer

Measurable program outcomes and results rather than inputs or activities

Answer

Performance-based budgeting ties resource allocation to demonstrated results, encouraging agencies to achieve defined outcomes efficiently.

Question 2

In state and local government accounting, GASB stands for:

Accepted Answer

Governmental Accounting Standards Board

Answer

GASB is the authoritative body that establishes accounting and financial reporting standards for U.S. state and local governmental entities.

Question 3

The Budget Enforcement Act framework categorizes federal spending into two broad categories. Which of the following is one of them?

Accepted Answer

Discretionary and Mandatory spending

Answer

Federal spending is divided into discretionary spending (subject to annual appropriations) and mandatory spending (governed by permanent law, e.g., Social Security, Medicare).

Question 4

An encumbrance in governmental accounting represents:

Accepted Answer

A reservation of funds for a purchase order or contract not yet paid

Answer

Encumbrances are commitments to spend (e.g., purchase orders issued) that reduce available appropriation balance before the actual expenditure is recorded.

Question 5

Which type of government fund is used to account for resources restricted for a specific purpose by an external party?

Accepted Answer

Special Revenue Fund

Answer

Special revenue funds account for revenues restricted or committed to specified purposes other than debt service or capital projects.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS CBS Government & Public Sector Budgeting 2