Budget and Financial Management Flashcards

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

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

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

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

Answer: Zero-based budgeting

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

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

Answer: Current operating expenditures

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

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

Answer: Budget transfer

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

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

Answer: Federal revenue

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

In school budgeting, an encumbrance refers to:

Answer: Reserved funds committed to a specific future expenditure

An encumbrance represents funds reserved for a purchase order or contract that has been issued but not yet fulfilled or paid.

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

Answer: Balance sheet

A balance sheet displays what an organization owns (assets) and owes (liabilities) at a specific date, revealing its net financial position.