CBS CBS Government & Public Sector Budgeting

Question 1

Which basis of accounting is most commonly used in U.S. federal government budgeting?

Accepted Answer

Cash basis

Answer

Full accrual basis

Answer

Modified accrual basis

Answer

Hybrid accrual basis

Question 2

The Government Accountability Office (GAO) is primarily responsible for:

Accepted Answer

Conducting audits and investigations on behalf of Congress to ensure accountability

Answer

Setting federal tax rates

Answer

Preparing the President's annual budget proposal

Answer

Approving agency budget requests before submission to OMB

Question 3

In public sector budgeting, an 'appropriation' is best defined as:

Accepted Answer

A statutory authorization by Congress permitting agencies to obligate and spend funds

Answer

The President's request for funding submitted to Congress

Answer

An OMB circular directing agency spending priorities

Answer

A GAO recommendation for reallocating resources

Question 4

Zero-Based Budgeting (ZBB) requires managers to:

Accepted Answer

Justify every budget dollar from scratch each year rather than from a prior-year baseline

Answer

Increase each budget line by a standard inflation factor

Answer

Reduce the prior year's budget by a set percentage

Answer

Match expenditures exactly to the previous fiscal year's actuals

Question 5

The Office of Management and Budget (OMB) plays which primary role in the federal budget process?

Accepted Answer

Coordinating agency budget requests and preparing the President's budget submission to Congress

Answer

Auditing federal agencies for fraud and waste

Answer

Approving all congressional appropriations bills

Answer

Setting interest rates to control federal borrowing costs

Question 6

A continuing resolution (CR) in U.S. government budgeting is enacted when:

Accepted Answer

Regular appropriations bills have not been passed by the start of the new fiscal year

Answer

Congress wants to increase spending above the debt ceiling

Answer

An agency exceeds its authorized budget and needs emergency funds

Answer

The President vetoes the annual budget and requests reconsideration