WGU D023 Exam (New 2024/ 2025 Update) School
Financial Leadership |Qs & As| Grade A| 100%
Correct (Verified Answers)
.1st Development Stage of School Finance - ANSWER-The period of local district
financial responsibility, with little or no assistance from the state
-used to be local or church
-rate bills or tuition
-problem in equity
.2nd Development Stage of School Finance - ANSWER-The period of emerging
state responsibility, with the use of flat grants, subventions, and other
nonequalizing state allocations to local districts
-state to supplement local tax revenues to provide acceptable programs
.3rd Development Stage of School Finance - ANSWER-The emergence of the
Strayer-Haig concept of a foundation program (minimum program)
-Each local district would levy the amount of local tax that was required in the
richest district of the state to provide a foundation, or minimum, program. The
rich district would receive no state funds; the other districts would receive state
funds necessary to provide the foundation program.
.4th Development Stage of School Finance - ANSWER-The period of refinement
of the foundation program concept
-use of flat grants
,-question to take money from wealthy districts to equalize
.5th Development Stage of School Finance - ANSWER-"Power" or "open-end"
(shared costs) equalization practices
-20th century
.6th Development Stage of School Finance - ANSWER-The shift of emphasis and
influence, and funding for special need
-economic factors influenced (wars, terrorist attacks, natural disasters,
fluctuating prices in energy, had to rethink budget and safety of schools
.7th Development Stage of School Finance - ANSWER-A focus on adequacy in
education finance
-court cases
-sufficient funding is needed to meet state laws, standards, and requirements,
and must be constitutionally enforceable
-CCSS
.ability-to-pay principle of taxation - ANSWER-belief that taxes should be paid
according to level of income regardless of benefits received
.Accrual Basis Accounting - ANSWER-the method of accounting that recognizes
revenue when it is earned and matches expenses to the revenues they helped
produce
-less common, happens at district level
-only used with things like school store
,.Activity Funds (what, how, whom?) - ANSWER-Activity funds are established to
direct and account for monies used to support cocurricular and extracurricular
student activities. -cocurricular activities are any kinds of school-related
activities outside the regular classroom that directly add value to the formal or
stated curriculum. Cocurricular activities involve a wide range of student clubs
and organizations.
-Extracurricular activities encompass a wide variety of other district-directed
activities, typified by organized sports and other nonacademic interscholastic
competitions.
.asset - ANSWER-Anything of value that is owned
-include concrete items such as cash, inventory and property and equipment
owned, as well as marketable securities (investments), prepaid expenses and
money owed to you (accounts receivable) from payers.
.Audit Procedures - ANSWER-the specialized actions auditors take to obtain
evidence in an engagement
.Balance Sheet - ANSWER-A financial statement that reports assets, liabilities,
and owner's equity on a specific date.
.Balance Sheet Equation - ANSWER-Assets = Liabilities + Owner's Equity
.Basic principals of Taxation - ANSWER-1. equity or fairness
2. adequacy
3. low costs of collection
4. impact/incidence
5. neutrality
, 6. predictability
.benefits received principle of taxation - ANSWER-system of taxation in which
those who use a particular government service support it with taxes in
proportion to the benefit they receive; those who do not use a service do not
pay taxes for it
.Best Practices in school budgeting - ANSWER-to maintain often, align priorities
and resources with performance goals
.block grants - ANSWER-Money from the national government that states can
spend within broad guidelines determined by Washington
.Bond Amortization - ANSWER-Reducing the amount of a bond discount or
premium over time.
.Bonding - ANSWER--Most common
-Issue bonds to pay for buildings
-Take the revenue from the bonds and build the building and then the people
who invested will get the money back with interest on it
-Complicated with lawyers and accountants
-District has a credit rating
-"Like a mortgage"
-Leads to inequities in that wealthy schools can get low interest bonds, and low
income schools get high interest bonds
Financial Leadership |Qs & As| Grade A| 100%
Correct (Verified Answers)
.1st Development Stage of School Finance - ANSWER-The period of local district
financial responsibility, with little or no assistance from the state
-used to be local or church
-rate bills or tuition
-problem in equity
.2nd Development Stage of School Finance - ANSWER-The period of emerging
state responsibility, with the use of flat grants, subventions, and other
nonequalizing state allocations to local districts
-state to supplement local tax revenues to provide acceptable programs
.3rd Development Stage of School Finance - ANSWER-The emergence of the
Strayer-Haig concept of a foundation program (minimum program)
-Each local district would levy the amount of local tax that was required in the
richest district of the state to provide a foundation, or minimum, program. The
rich district would receive no state funds; the other districts would receive state
funds necessary to provide the foundation program.
.4th Development Stage of School Finance - ANSWER-The period of refinement
of the foundation program concept
-use of flat grants
,-question to take money from wealthy districts to equalize
.5th Development Stage of School Finance - ANSWER-"Power" or "open-end"
(shared costs) equalization practices
-20th century
.6th Development Stage of School Finance - ANSWER-The shift of emphasis and
influence, and funding for special need
-economic factors influenced (wars, terrorist attacks, natural disasters,
fluctuating prices in energy, had to rethink budget and safety of schools
.7th Development Stage of School Finance - ANSWER-A focus on adequacy in
education finance
-court cases
-sufficient funding is needed to meet state laws, standards, and requirements,
and must be constitutionally enforceable
-CCSS
.ability-to-pay principle of taxation - ANSWER-belief that taxes should be paid
according to level of income regardless of benefits received
.Accrual Basis Accounting - ANSWER-the method of accounting that recognizes
revenue when it is earned and matches expenses to the revenues they helped
produce
-less common, happens at district level
-only used with things like school store
,.Activity Funds (what, how, whom?) - ANSWER-Activity funds are established to
direct and account for monies used to support cocurricular and extracurricular
student activities. -cocurricular activities are any kinds of school-related
activities outside the regular classroom that directly add value to the formal or
stated curriculum. Cocurricular activities involve a wide range of student clubs
and organizations.
-Extracurricular activities encompass a wide variety of other district-directed
activities, typified by organized sports and other nonacademic interscholastic
competitions.
.asset - ANSWER-Anything of value that is owned
-include concrete items such as cash, inventory and property and equipment
owned, as well as marketable securities (investments), prepaid expenses and
money owed to you (accounts receivable) from payers.
.Audit Procedures - ANSWER-the specialized actions auditors take to obtain
evidence in an engagement
.Balance Sheet - ANSWER-A financial statement that reports assets, liabilities,
and owner's equity on a specific date.
.Balance Sheet Equation - ANSWER-Assets = Liabilities + Owner's Equity
.Basic principals of Taxation - ANSWER-1. equity or fairness
2. adequacy
3. low costs of collection
4. impact/incidence
5. neutrality
, 6. predictability
.benefits received principle of taxation - ANSWER-system of taxation in which
those who use a particular government service support it with taxes in
proportion to the benefit they receive; those who do not use a service do not
pay taxes for it
.Best Practices in school budgeting - ANSWER-to maintain often, align priorities
and resources with performance goals
.block grants - ANSWER-Money from the national government that states can
spend within broad guidelines determined by Washington
.Bond Amortization - ANSWER-Reducing the amount of a bond discount or
premium over time.
.Bonding - ANSWER--Most common
-Issue bonds to pay for buildings
-Take the revenue from the bonds and build the building and then the people
who invested will get the money back with interest on it
-Complicated with lawyers and accountants
-District has a credit rating
-"Like a mortgage"
-Leads to inequities in that wealthy schools can get low interest bonds, and low
income schools get high interest bonds
