Exam 13: Accounting for Not-For-Profit Organizations

Effective capital budgeting for general capital assets of a government requires

Some of the budgeting approaches governments have experimented with as alternatives to line-item,incremental budgeting include performance budgeting,program budgeting,the planning-programming-budgeting system,and zero-based budgeting.

In the chapters that discuss governmental fund-types,it is assumed that budgets are prepared on the modified accrual basis.Examples in those chapters also assume that the perspective of the budget is the fund,and that revenue budgets are prepared by source and appropriations budgets are prepared by function.From the standpoint of financial management of a government,state what objectives are served by preparation of budgets on the same basis as financial statements.

The GASB "Budgeting Principle" states that an annual budget should be adopted by (for)every

The schedule of legally required events in the budgeting process is generally referred to as the

Which of the following statements is not consistent with the GASB's "Budgeting,Budgetary Control,and Budgetary Reporting Principle?"

Effective financial management requires information about capital assets,including nonfinancial information such as physical measures of capital assets,their service condition,and estimated replacement schedule.

In budgeting for the inflow of financial resources,government officials must concern themselves with revenues and other financing sources.

Traditional governmental accounting is better suited to determination of costs than to determination of benefits.

Which of the following is not a typical step in the budgeting process for a state or local government?

Name at least three criteria that must be met for costs to be allowable under OMB circulars.

Mountain City government has a payroll department that handles the processing of payroll for all city employees.The responsibilities of the payroll department relate to full-time,part-time and contractual employees and include: obtaining information from new employees so they can be added to the payroll; having new employees complete payroll withholding and deduction forms; collecting time sheets; calculating gross pay,appropriate deductions and employer contributions for each pay period; and completing vouchers for contributions and withholdings.The annual budget of the payroll department is The city charges the payroll department an indirect overhead cost rate based on the number of square feet of office space utilized.The overhead rate is currently $9 per square foot.The overhead rate is intended to cover maintenance costs,utilities,and equipment depreciation.Recently,Mountain City has begun to wonder if it would be more economical to contract for its payroll services.The city's budget administrator contacted a neighboring city and learned that the neighboring city was paying $1.50/check for its payroll function. Required 1.Calculate Mountain City payroll department's cost per check. 2.Based on costs would it be cheaper to maintain the payroll department or contract out for the payroll services? 3.Discuss what other information you would want before making a decision about retaining or contracting payroll.

The sole purpose of preparing a governmental budget is to show compliance with laws and regulations.

If governments and not-for-profit (NFP)organizations exist in order to provide services needed by the public,or segments of the public,and are not concerned with the generation of net income: A)Explain concisely why governmental and NFP administrators should be concerned with the determination of costs of services rendered? B)Explain concisely why governmental and NFP administrators should understand the relationships between cost determination and budgeting.In your answer be sure to identify clearly the relationships you are discussing.

One of the major advantages of incremental budgeting is that it focuses largely on inputs.

Balanced scorecards integrate all of the following into a document that can be shared with employees and stakeholders except

If the revenues budget of a government is prepared on the modified accrual basis is there any reason why the revenues budget should be converted to a cash receipts budget? Explain.

What is the name of the type of budgeting in which the very existence of each activity should be justified each year? Elaborate.

Which of the following might appropriately be termed an outcome indicator for a police department that reports service efforts and accomplishments (SEA)indicators?

A major advantage of activity-based costing (ABC)is that it reduces unit cost distortions arising from overhead allocations that often occur using traditional cost accounting systems.