MPA Public Budgeting and Finance 2

Question 1

What is a 'fund' in governmental accounting?

Accepted Answer

A self-balancing set of accounts used to record revenues and expenditures for a specific purpose

Answer

A savings account for capital projects

Answer

The total annual appropriation for an agency

Answer

A pooled investment vehicle for public pensions

Question 2

Which statement best describes 'encumbrance accounting'?

Accepted Answer

Reserving funds when a purchase order is issued before the expenditure is actually made

Answer

Recording revenues before they are received

Answer

Writing off uncollectible debts

Answer

Depreciating capital assets over their useful life

Question 3

The Governmental Accounting Standards Board (GASB) primarily sets standards for:

Accepted Answer

State and local government financial reporting

Answer

Federal agency financial reporting

Answer

Nonprofit organization accounting

Answer

Corporate tax reporting

Question 4

What does the 'debt service ratio' measure in public finance?

Accepted Answer

The proportion of government revenue consumed by principal and interest payments on debt

Answer

The ratio of tax revenue to total GDP

Answer

The percentage of the budget allocated to capital projects

Answer

The ratio of short-term to long-term debt

Question 5

Which federal agency is responsible for auditing and evaluating federal programs for Congress?

Accepted Answer

Government Accountability Office (GAO)

Answer

Office of Management and Budget (OMB)

Answer

Congressional Budget Office (CBO)

Answer

Office of Inspector General (OIG)

Question 6

What is 'tax increment financing' (TIF) commonly used for in U.S. public administration?

Accepted Answer

Financing economic development and redevelopment in designated districts using future tax revenue growth

Answer

Funding federal defense contracts

Answer

Providing grants to small businesses

Answer

Subsidizing public employee pension funds