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Public budgeting
Contributed by: Foster
  • 1. Which budget focuses on the estimated revenues and expenditures for the upcoming fiscal year?
A) Operating budget
B) Zero-based budget
C) Capital budget
D) Cash budget
  • 2. What is the purpose of a line-item budget?
A) To allocate funds based on specific categories
B) To maximize profits
C) To reduce expenditures
D) To forecast revenue
  • 3. What does the acronym PPBS stand for in public budgeting?
A) Performance-based Budgeting Strategy
B) Public Partnership Budgeting System
C) Profit Projection Budgeting System
D) Planning, Programming, Budgeting System
  • 4. Which budgeting approach focuses on setting budget targets based on past performance?
A) Incremental budgeting
B) Activity-based budgeting
C) Zero-based budgeting
D) Performance-based budgeting
  • 5. What is the primary difference between operating and capital budgets?
A) Operating budgets are reviewed annually, while capital budgets are reviewed quarterly
B) Capital budgets result in profit generation
C) Operating budgets cover day-to-day expenses, while capital budgets cover long-term investments
D) Operating budgets are static, while capital budgets are dynamic
  • 6. What is the purpose of cost-benefit analysis in public budgeting?
A) To ignore the financial impact of a project
B) To evaluate whether the benefits of a project outweigh the costs
C) To minimize costs regardless of benefits
D) To focus on short-term profitability only
  • 7. What is the main benefit of multi-year budgeting in the public sector?
A) Immediate revenue increase
B) Short-term cost reduction
C) Long-term planning and stability
D) Operational efficiency
  • 8. Which type of budgeting involves setting spending limits without exceeding revenues?
A) Deficit budgeting
B) Balanced budgeting
C) Debt budgeting
D) Surplus 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
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