Public budgeting
  • 1. Which budget focuses on the estimated revenues and expenditures for the upcoming fiscal year?
A) Cash budget
B) Capital budget
C) Zero-based budget
D) Operating budget
  • 2. What is the purpose of a line-item budget?
A) To maximize profits
B) To allocate funds based on specific categories
C) To forecast revenue
D) To reduce expenditures
  • 3. What does the acronym PPBS stand for in public budgeting?
A) Planning, Programming, Budgeting System
B) Performance-based Budgeting Strategy
C) Profit Projection Budgeting System
D) Public Partnership Budgeting System
  • 4. Which budgeting approach focuses on setting budget targets based on past performance?
A) Performance-based budgeting
B) Incremental budgeting
C) Zero-based budgeting
D) Activity-based budgeting
  • 5. What is the primary difference between operating and capital budgets?
A) Operating budgets cover day-to-day expenses, while capital budgets cover long-term investments
B) Capital budgets result in profit generation
C) Operating budgets are reviewed annually, while capital budgets are reviewed quarterly
D) Operating budgets are static, while capital budgets are dynamic
  • 6. What is the purpose of cost-benefit analysis in public budgeting?
A) To focus on short-term profitability only
B) To minimize costs regardless of benefits
C) To evaluate whether the benefits of a project outweigh the costs
D) To ignore the financial impact of a project
  • 7. What is the main benefit of multi-year budgeting in the public sector?
A) Operational efficiency
B) Short-term cost reduction
C) Immediate revenue increase
D) Long-term planning and stability
  • 8. Which type of budgeting involves setting spending limits without exceeding revenues?
A) Surplus budgeting
B) Balanced budgeting
C) Deficit budgeting
D) Debt budgeting
  • 9. What is the relationship between public budgeting and fiscal policy?
A) Public budgeting is a tool used to implement fiscal policy decisions
B) Fiscal policy replaces public budgeting
C) Public budgeting is solely focused on revenues
D) Public budgeting has no impact on fiscal policy
Created with That Quiz — the math test generation site with resources for other subject areas.