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

The U.S. federal budget is prepared on a cash (budget authority/outlays) basis, though agencies also produce accrual-based financial statements.

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

The GAO is an independent congressional watchdog that audits federal programs and agencies to assess efficiency, effectiveness, and compliance.

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

An appropriation is a legal authorization enacted by Congress that allows a federal agency to incur obligations and make payments from the Treasury.

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

ZBB starts from a zero base each cycle and requires all programs to justify their existence and resource needs, eliminating automatic baseline increases.

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

OMB assists the President in preparing the budget, oversees agency budget formulation, and monitors execution of approved spending plans.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS CBS Government & Public Sector Budgeting