PCP Budget and Financial Management 1

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

The general fund covers routine operational expenses such as salaries, utilities, and instructional materials that keep the school running daily.

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

Zero-based budgeting starts from scratch each year, requiring administrators to justify every budget item regardless of prior year allocations.

Question 3

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

Accepted Answer

Current operating expenditures

Answer

Salary and benefit expenses are classified as current operating expenditures because they are recurring costs necessary to maintain normal school functions.

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

A budget transfer moves funds between line items within the same fund and typically requires approval from district administration.

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

Title I is a federal program enacted under the Elementary and Secondary Education Act, making its funding a federal revenue source.

PCP - Principal Certification Program Practice Test

PCP - Principal Certification Program Practice Test

PCP Budget and Financial Management 1