Section 1 Chapter 1-4

Question 1

Can the Government be ran like a business?

Answer 1

No

Question 2

What makes it difficult to employ techniques incorporated by companies in the private sector?

Answer 2

Unique Characteristics

Question 3

Who elects the Government’s board of directors?

Answer 3

The Public

Question 4

What qualifications are need to become a director?

Answer 4

A. Meet the residency requirements
B. Get one or more votes then your opponent.
C. Usually no experience is required.

Question 5

What are some of the differences of the governmental environment from the Private Industry?

Answer 5

A. The Government is not operating for “Profit”

B.Goals and objectives are established with input from the public

Question 6

Resources for the Government is derived primarily from what source?

Answer 6

Taxes

Question 7

What are some other sources the Government receive revenues from?

Answer 7

A. Grants
B. Establish Userfees
C. Licenses and permits from certain services.

Question 8

What method is used by the Government for allocating money?

Answer 8

The Budget

Question 9

The Government is legally bound by the budget because…

Answer 9

A. The budget establishes spending authorization, outlines programs and services to be provided and defines the sources of revenues that will be used to fund them.
B. The Budget may specify restrictions on the use of resources.

Question 10

The Budget process is the primary control device in the Government. Adherence to the budget is one way government financial managers demonstrate?

Answer 10

Accountability

Question 11

________ is the cornerstone of financial reporting?

Answer 11

Accountability

Question 12

Define Legal Accountability:

Answer 12

The need to comply with various laws, rules and regulations.

Question 13

Define Performance Accountability:

Answer 13

The need to ensure that the Government act in an efficient, effective or economic manner; ensuring the goals and objectives are met.

Question 14

Define Fiscal Accountability:

Answer 14

The raising of resources and the allocation of those resources to accomplish objectives;

Financial reporting is an important method of demonstrating fiscal accountability.

Question 15

Define Operational Accountability:

Answer 15

Is associated with the stewardship of the public resources. There needs to be away to determine if the funds are being used wisely. One way to address Operational Accountability is through the use of performance measures and performance reporting.

Question 16

The Legislative branch is accountable to the Executive branch? True or False

Answer 16

False: The Executive Branch is accountable to the Legislative Branch and the public.

Question 17

Explain how the Executive Branch is Accountable to the Legislative branch?

Answer 17

Executive Branch is accountable to the Legislative Branch for using resources in accordance with the Legislative mandates within the fiscal constraints imposed by the legislative branch.

Question 18

Explain how the Executive Branch is Accountable to the public?

Answer 18

Executive Branch is accountable to the Public for operating in an effective and efficient manner, and collecting and using resources.

Question 19

Explain how the Legislative Branch is accountable to he public?

Answer 19

The Legislative Branch is accountable to the public for the raising of resources and for determining how those resources are to be used.

Question 20

The Executive Branch and the Legislative Branch rely on the____________ as a means of demonstrating accountability.

Answer 20

Financial reporting

Question 21

Define: Interperiod Equity

Answer 21

Interperiod Equity is the government’s obligation to disclose whether current-year revenues were sufficient to pay current year obligations; or did current citizens defer payments to future tax payers

Question 22

Interperiod Equity is also known as:

Answer 22

Intergenerational Equity

Question 23

Define Balanced Budget Law:

Answer 23

Balanced Budget Law means that current -year services must be financed with current-year revenues.

Question 24

Balanced Budget Laws are enforced at the Government and State and Local level.

Answer 24

NO. Balanced Budget Laws are only enforced at the State and Local Level

Question 25

Define debt ceiling:

Answer 25

The amount of public debt outstanding

Question 26

When congress enact amendment to earlier laws, what does this do?

Answer 26

Adjust the debt ceiling.

Question 27

Which Branch establishes budgetary appropriations?

Executive or Legislative

Answer 27

Legislative Branch

Question 28

How does Financial reporting in the government assist users?

Answer 28

A. Assess Accountability

B. Help make economic, social and political decisions.