Budgets of government entities:

  1. Are integrated with the financial accounting system.
  2. Enable governments to demonstrate compliance with laws and to communicate performance effectiveness.
  3. Are adopted by governments after required public hearings.
  4. All of the above

Which of the following statements regarding budgets of not-for-profit organizations is true?

  1. Not-for-profit organization budgets are legal documents reflecting plans for spending resources.
  2. A not-for-profit entity may choose to do a budget to demonstrate accountability to its resource providers, such as donors and grantors.
  3. The budgeting approaches used for governments generally cannot be used by not-for-profit entities.
  4. All of the above statements are true.

Which of the following steps wouldnot usually be part of the budgeting process?

  1. Heads of operating departments prepare budget requests.
  2. The chief executive (mayor or city manager, as appropriate) formally adopts the budget, thus giving it the force of law.
  3. One or more public budget hearings are held.
  4. Budget officer and other central administrators review and make adjustments to departmental requests.