PCP Budget and Financial Management

Question 1

What is the primary purpose of a school's general fund?

Accepted Answer

To finance the day-to-day operational expenses of the school

Answer

To purchase specialized equipment for extracurricular activities

Answer

To support capital improvement projects only

Answer

To manage federal grant funds exclusively

Question 2

Which budgeting approach begins with a zero balance each fiscal year and requires justification for all expenditures?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Line-item budgeting

Answer

Program budgeting

Question 3

In school budget accounting, salaries and employee benefits are classified under which category?

Accepted Answer

Current operating expenditures

Answer

Capital outlay

Answer

Debt service

Answer

Special revenue

Question 4

When a school principal moves funds from one budget line item to another within the same fund category, this action is called a:

Accepted Answer

Budget transfer

Answer

Budget amendment

Answer

Encumbrance

Answer

Carryover

Question 5

Title I funds provided to schools with high percentages of low-income students are classified as which type of revenue source?

Accepted Answer

Federal revenue

Answer

Local revenue

Answer

State revenue

Answer

Private grants

Question 6

In school budgeting, an encumbrance refers to:

Accepted Answer

Reserved funds committed to a specific future expenditure

Answer

Funds already spent on completed purchases

Answer

Unspent funds returned to the district at year-end

Answer

Emergency funds set aside for crisis management

Question 7

Which financial document provides a snapshot of a school's assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget variance report