CBS CBS Government & Public Sector Budgeting 3

Question 1

Program Evaluation and Review Technique (PERT) is most commonly used in public sector budgeting to:

Accepted Answer

Schedule and manage complex projects by estimating time for activities under uncertainty

Answer

PERT uses optimistic, pessimistic, and most likely time estimates to map project activities and identify the critical path for completion.

Question 2

A government budget is considered 'balanced' when:

Accepted Answer

Total revenues equal or exceed total expenditures for the fiscal year

Answer

A balanced budget means the government's revenues are sufficient to cover all expenditures, resulting in neither a deficit nor a surplus.

Question 3

Fund accounting in the public sector is used primarily to:

Accepted Answer

Demonstrate and ensure compliance with legal restrictions on how specific revenues may be spent

Answer

Fund accounting segregates resources into separate accounting entities to ensure money raised for specific purposes is spent only on those purposes, as required by law or donor restrictions.

Question 4

The Congressional Budget Office (CBO) provides Congress with:

Accepted Answer

Independent economic and budgetary analysis and cost estimates for legislation

Answer

CBO is a nonpartisan agency that provides objective analysis of the federal budget, economic outlook, and the fiscal impact of proposed legislation.

Question 5

Intergovernmental grants that allow state and local governments broad discretion in how funds are spent are called:

Accepted Answer

Block grants

Answer

Block grants provide funding for a broadly defined purpose (e.g., community development, social services) with few strings attached, giving recipients flexibility in allocation.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS CBS Government & Public Sector Budgeting 3