Budgets

Question 1

An estimate of expenses funded by an estimate of revenues over a specific period of time, usually a year.

Answer 1

Budget

Question 2

Operating expenses exclusive of personnel.

Answer 2

Overhead

Question 3

A projection that contains amounts budgeted at various levels of service.

Answer 3

Flexible budget

Question 4

All the expenses needed to operate an agency.

Answer 4

Operating expenses

Question 5

A cash fund of limited amount used to make small expenditures.

Answer 5

Petty cash fund

Question 6

Historical, once time costs (not recurring).

Answer 6

Sunk costs

Question 7

Funds committed during the current year for a projected future expenditure for a specific line item.

Answer 7

Encumbrance

Question 8

Cash liability money owed to vendors for products or services provided.

Answer 8

Obligation

Question 9

The process by which financial information about an agency is recorded, classified, summarized, interpreted and communicated to managers.

Answer 9

Accounting

Question 10

12-month accounting period used by an agency.

Answer 10

Fiscal year

Question 11

The time after the end of the fiscal year when funds can still be expended.

Answer 11

Lapse period

Question 12

Money added to the budget after it has been adopted or approved.

Answer 12

Supplemental appropriation

Question 13

Expenses that do not vary in total during a period of time even though the amount of service may be more or less than anticipated.

Answer 13

Fixed costs

Question 14

Operating costs not easily assigned to a particular department when transactions occur.

Answer 14

Indirect expenses

Question 15

Generally accepted accounting principles

Answer 15

GAAP

Question 16

Generally accepted auditing standards

Answer 16

GAAS

Question 17

A certified public accountant licensed by a state to do public accounting.

Answer 17

CPA

Question 18

Periodic reports that summarize an agency’s finances.

Answer 18

Financial statements

Question 19

Expenses that change in total directly with the amount of service provided.

Answer 19

Variable costs

Question 20

A gift of money from a government or private entity to another agency for the purpose of funding efforts toward a particular goal.

Answer 20

Grant

Question 21

The budget for big-ticket items.

Answer 21

Capital budget

Question 22

Money collected from any source. In government, usually from taxes.

Answer 22

Revenue

Question 23

The spending of resources expressed in dollars.

Answer 23

Cost

Question 24

Money can be expended up to the total amount approved regardless of category.

Answer 24

Bottom line philosophy

Question 25

The difference between the amount budgeted and the actual cost.

Answer 25

Variance analysis

Question 26

Money set aside for special needs that arise.

Answer 26

Discretionary budget

Question 27

A modern version of the program budgeting system that breaks down costs by activity.

Answer 27

Activity based costing (ABC)

Question 28

When employees have input into the budget, which is submitted to their immediate suerprvisor.

Answer 28

All levels budgeting

Question 29

Budgeting system that focuses on productivity and performance measures.

Answer 29

Performance based budgeting

Question 30

Originated in the 1900’s and still used widely today. Incremental increases and decreases by line item. Focuses on control.

Answer 30

Line item budgeting

Question 31

Requires justification of all expenditures, assumes nothing is being funded.

Answer 31

Zero based budgeting

Question 32

Focuses on effectiveness; goals, objectives and systems approach, looks at work as programs.

Answer 32

Program budgeting