Question 1

A budget is also a:&#10;A) plan&#10;B) method to authorize programs&#10;C) none of the above&#10;D) both a and b

Accepted Answer

A budget is a plan that outlines the financial resources and expenses of an organization or individual. It is also a method to authorize programs, as the allocation of funds within the budget determines which programs can be implemented and to what extent. Therefore, options A and B are correct, making option D the best choice. Option C is incorrect as a budget serves as both a plan and a method to authorize programs.

Question 2

Budgets are usually good for:&#10;A) one month&#10;B) six months&#10;C) one year&#10;D) two years

Accepted Answer

Budgets are usually created and planned for a one year period. This allows for long-term planning and the ability to adjust and adapt throughout the year based on changing circumstances. Budgets can also be broken down into shorter periods for monitoring and tracking purposes, but the overall plan is typically for one year.

Question 3

The budget is significant because:&#10;A) it specifies limits to what the police department can do&#10;B) it gives legislators the ability to criticize the department&#10;C) a and b only&#10;D) none of the above

Accepted Answer

A

Question 4

A budget that uses a prior year budget to build the new budget is called:&#10;A) incremental budgeting&#10;B) zero-based budgeting&#10;C) line-item or object budget&#10;D) performance budget

Accepted Answer

The budget that uses a prior year budget to build the new budget is called incremental budgeting. It is a more conservative approach to budgeting as it assumes that the previous year's budget is a good base to start with and only incremental changes are made to it.

Question 5

A budget that groups items by types or classes is:&#10;A) incremental budgeting&#10;B) zero-based budgeting&#10;C) line-item or object budget&#10;D) performance budget

Accepted Answer

A line-item or object budget groups items by types or classes, which makes it easier to track and manage expenses. Incremental budgeting focuses on increasing or decreasing the budget from the previous year, while zero-based budgeting requires justifying every expense from scratch. Performance budgeting assesses budget needs based on desired outcomes and results.

Question 6

A budget that is based on how well specific activities of the police department are done is:&#10;A) incremental budgeting&#10;B) zero-based budgeting&#10;C) line-item or object budget&#10;D) performance budget

Accepted Answer

A performance budget is based on how well specific activities are performed and is focused on achieving certain outcomes. It differs from other budgeting methods, such as incremental budgeting and line-item budgeting, which focus on adjusting or maintaining previous budget levels. Zero-based budgeting is a method where the budget starts from zero and each program or activity must be justified and evaluated for its contribution to the organization's goals, which is similar to a performance budget. However, in practice, zero-based budgeting is less commonly used in law enforcement agencies. Therefore, the best choice is D) performance budget.

Question 7

Requires a review and justification of all areas of the budget:&#10;A) incremental budgeting&#10;B) zero-based budgeting&#10;C) line-item or object budget&#10;D) performance budget

Accepted Answer

Zero-based budgeting requires a review and justification of all areas of the budget because it starts from a "zero base," and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

Question 8

The stage in the budgeting process that focuses on submitting the budget to the city/county manager&#10;A) preparation&#10;B) adoption&#10;C) execution&#10;D) post audit

Accepted Answer

The preparation stage of the budgeting process involves submitting the budget to the city or county manager for review and adjustments before it is presented to the governing body for adoption.

Question 9

This stage requires some legal action, such as passing an ordinance or resolution:&#10;A) preparation&#10;B) adoption&#10;C) execution&#10;D) post audit

Accepted Answer

The adoption stage is where the legal action is taken, such as passing an ordinance or resolution. The preparation stage involves researching and drafting the ordinance or resolution, while the execution stage involves implementing it. The post audit stage involves evaluating the effectiveness of the ordinance or resolution after it has been in place.

Question 10

This stage requires control of the fiscal system:&#10;A) preparation&#10;B) adoption&#10;C) execution&#10;D) post audit

Accepted Answer

The execution stage of the fiscal system involves the actual carrying out of the budget, including the allocation and disbursement of funds, and ensuring that expenditures are in line with the approved budget. This requires strict control over the fiscal system to prevent financial mismanagement and ensure that resources are used appropriately.

Question 11

This is a legislative function that looks at funds to see that they were spent properly.&#10;A) preparation&#10;B) adoption&#10;C) execution&#10;D) post audit

Accepted Answer

The answer of This is a legislative function that looks...

Question 12

Line item budgets generally categorize budget items, often they are divided into how many categories?&#10;A) two&#10;B) three&#10;C) four&#10;D) five

Accepted Answer

The answer of Line item budgets generally categorize budget items,...

Question 13

One of the line item categories is personal services, which includes:&#10;A) salaries and fringe benefits&#10;B) gas, oil and forms&#10;C) contracts, rentals and travel&#10;D) desks, cars and weapons

Accepted Answer

The answer of One of the line item categories is...

Question 14

Operating and maintenance expenses include:&#10;A) salaries and fringe benefits&#10;B) gas, oil and forms&#10;C) contracts, rentals and travel&#10;D) desks, cars and weapons

Accepted Answer

The answer of Operating and maintenance expenses include:&#10;A) salaries and...

Question 15

Included in capital outlay is:&#10;A) salaries and fringe benefits&#10;B) gas, oil and forms&#10;C) contracts, rentals and travel&#10;D) desks, cars and weapons

Accepted Answer

The answer of Included in capital outlay is:&#10;A) salaries and...

Deck 13: Fiscal Management