Chapter 2 (THE BUDGET PROCESS)

Question 1

budgetary accounting, provide budget info (PPSAS

Answer 1

Government Accounting

Question 2

gov’s estimate of sources & use of funds (fiscal year)

Answer 2

National budget (gov budget)

Question 3

Budget Cycle

Answer 3

Budget Preparation
Budget Legislation
Budget Executions
Budget Accountability

Question 4

Budget Preparation

Answer 4

1. Budget Call
2. Budget hearings
3. Presentation to the office of the president

Question 5

prepared by DBM, agency budget ceiling

Answer 5

1. Budget Call

Question 6

estimated rev exceeds estimated exp

Answer 6

a) Balanced budget

Question 7

period 1 year ( basis for annual prep

Answer 7

b) Annual budget

Question 8

focus on specific exp (salaries and wages, travel exp)

Answer 8

d) Line item budget

Question 9

plan of activities with related costs

Answer 9

e) Performance budget

Question 10

exp incurred, paid this year or following year

Answer 10

f) Obligations budget

Question 11

Budget Legislation

Answer 11

4. House deliberations
5. Senate deliberations
6. Bicameral deliberations
7. President’s enactment

Question 12

Budget Executions

Answer 12

8. Release and Guidelines & BEDs
9. Allotment
10. Incurrence of Obligations
11. Disbursement Authority

Question 13

Budget Accountability

Answer 13

12. Budget Accountability Reports
13. Performance reviews
14. Audit

Question 14

authorization by a legislative body to allocate funds for specified purposes.

Answer 14

1. Appropriation

Question 15

authorization to agencies to incur obligations (obligations authority)

Answer 15

2. Allotment

Question 16

amount contracted by an authorized officer for which the government is held liable.

Answer 16

3. Obligation

Question 17

actual amounts paid out of the budgeted amount.

Answer 17

4. Disbursement

Question 18

Budget Preparation (BP)

Answer 18

• Uses bottom-up approach (lowest to highest levels of gov)

Question 19

without regard to previous year’s budget (back to zero)

Answer 19

zero-based budgeting approach

Question 20

System of providing cost and revenue information over which manager has direct control

Answer 20

Responsibility Accounting

Question 21

Is a part, segment, unit or function of gov agency, headed by manager, accountable for specified set of activities

Answer 21

Responsibility center

Question 22

costs where manager has the power to incur within given a period of time

Answer 22

Controllable costs