Reference no: EM133266227

1. What kind of capital projects receive priority?

Politically acceptable projects

Lifesaving projects

Earmarked projects

Entitlement projects

2. _____________ is an example of a current asset

land

investments

buildings

accounts receivable

3. The formula debt-to-asset ratio= total liabilities in a ratio analysis measures Total assets

liquidity

Sustainability

Solvency

Profitability

4. The primary source of local tax revenue is

income tax.

property tax.

sales tax.

excise tax.

5. Liquidity is measured by dividing the following

current assets/current capital

current assets/long-term liabilities

accounts receivable/current liability

current assets/current liabilities

6. The federal budget reflects the partisan conflict over the appropriate size of government. If you are a liberal, you may want to __________________ taxes to pay for social welfare programs. If you are a conservative, you may want to ____________________programs to balance the budget and restrain the size of government.

increase, cut

decrease, increase

increase, fund

none of the above

7. In order, identify the five budgetary decision clusters

expenditures, revenue, process, balance, implementation

revenue, expenditures, process, balance, implementation

Process, expenditures, revenue, balance, implementation

revenue, process, expenditures, balance, implementation

8. The federal budget is potentially a means of controlling the economy. ________________ policy focuses on taxing and spending and is controlled by ________________.

monetary, the Federal Reserve

fiscal, the Federal Reserve

monetary, Congress

fiscal, Congress

9. States are facing challenges in part because of a sluggish economy and because of future liability. An example of a future liability for a state or locality is

entitlements

education

unfunded mandates

pensions

10. Solvency is

a measure of whether a government entity or nonprofit can pay off its long-term debt.

a measure of how many long-term assets a government entity holds

a measure of how sustainable a government entity is long-term.

none of the above

11. What is the difference between the national debt and the federal deficit?

Both the federal deficit is the national debt relate to one year's borrowing to cover excess spending.

The national debt is composed of all borrowing to cover the annual federal deficits.

The federal deficit consists of public sector debt while the national debt includes both public and private sector debt.

The national debt includes all funds owed by all levels of government while the federal deficit reflects only what the federal government owes.

12. Ethics in public budgeting represent a _________________ code of conduct while morals represent _______beliefs

personal, religious

personal, professional

professional, personal

personal, religious