Planning and Budgeting Practice Test
Questions With Complete Solutions
What should be identified fist when developing a structurally balanced budget?
All of the above
Using GFOA's Financial Foundations Framework Pillar 2, the finance officer
should take which role in regards to the budget?
Build Trust and Communication
The strategic goals section of the budget document should address:
long-term concerns and include strategies on how to achieve those goals.
When considering the volatility of expenses, risk from natural disasters, and the
governments overall tolerance of risk, what should be considered?
The appropriate level of fund balance for the general fund.
Which of the following is the best of a one time revenue policy?
nonrecurring expenditures (pay off debt, refurbish a capital asset, build up reserves.)
What is the optimal way to determine the right level of fund balance?
analyze your risk
What is a goal of an organizations strategic plan?
Economic Development
How often should a strategic be revised?
Five Years
When developing and implementing capital asset renewal and replacement
reserves, a CFO should consider:
Annually contributing a percentage of the estimate of annual depreciation for entity's
assets.
What are types of quantitative forecasting models?
All of the above.
A revenue source that is susceptible to increases or decreases with changes in
economic activity is considered:
elastic revenue
Which is a principle to help avoid unfairness in budgeting?
All of the above
Which of the following is the least common type of tax collected by local
governments in the United States?
License Tax
Which is the LEAST defensible principle of fairness for setting taxes and fees?
Historical Rates
Which of the following is NOT appropriate as a main revenue source?
Fines and fees
If a government focuses on competition with surrounding governments for
revenue, then they ignore which of the following?
Fairness
Questions With Complete Solutions
What should be identified fist when developing a structurally balanced budget?
All of the above
Using GFOA's Financial Foundations Framework Pillar 2, the finance officer
should take which role in regards to the budget?
Build Trust and Communication
The strategic goals section of the budget document should address:
long-term concerns and include strategies on how to achieve those goals.
When considering the volatility of expenses, risk from natural disasters, and the
governments overall tolerance of risk, what should be considered?
The appropriate level of fund balance for the general fund.
Which of the following is the best of a one time revenue policy?
nonrecurring expenditures (pay off debt, refurbish a capital asset, build up reserves.)
What is the optimal way to determine the right level of fund balance?
analyze your risk
What is a goal of an organizations strategic plan?
Economic Development
How often should a strategic be revised?
Five Years
When developing and implementing capital asset renewal and replacement
reserves, a CFO should consider:
Annually contributing a percentage of the estimate of annual depreciation for entity's
assets.
What are types of quantitative forecasting models?
All of the above.
A revenue source that is susceptible to increases or decreases with changes in
economic activity is considered:
elastic revenue
Which is a principle to help avoid unfairness in budgeting?
All of the above
Which of the following is the least common type of tax collected by local
governments in the United States?
License Tax
Which is the LEAST defensible principle of fairness for setting taxes and fees?
Historical Rates
Which of the following is NOT appropriate as a main revenue source?
Fines and fees
If a government focuses on competition with surrounding governments for
revenue, then they ignore which of the following?
Fairness
