CGFO Budgeting Practices 5

Question 1

Which document formally communicates a government's budget request from the executive branch to the legislative body?

Accepted Answer

Executive budget proposal

Answer

The executive budget proposal is submitted by the chief executive (mayor, county manager, governor) to the legislative body recommending appropriations for the upcoming fiscal year.

Question 2

When a government transfers money from the General Fund to the Debt Service Fund to pay debt principal, this is recorded as:

Accepted Answer

A transfer out in the General Fund and a transfer in in the Debt Service Fund

Answer

Interfund transfers are recorded as 'transfers out' in the sending fund and 'transfers in' in the receiving fund, not as revenues or expenditures.

Question 3

The 'base budget' in incremental budgeting typically refers to:

Accepted Answer

The prior year's adopted budget used as a starting point

Answer

In incremental budgeting, the base budget is the prior year's adopted budget, with new requests built on top of that existing level.

Question 4

Under what circumstance would a government typically use a 'continuing resolution' or 'continuing appropriation'?

Accepted Answer

When the legislature fails to adopt a new budget before the start of the fiscal year

Answer

A continuing resolution or continuing appropriation allows government operations to continue at prior-year funding levels when the new budget has not been adopted by the fiscal year start date.

Question 5

Which of the following is a characteristic of 'outcome measures' in performance budgeting?

Accepted Answer

They indicate the impact or result of a government program on the community

Answer

Outcome measures assess the actual impact of government services on the community, such as reduced crime rates or improved graduation rates, rather than just counting service units.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Budgeting Practices 5