Correct Answer:
B. Links funding to outputs and outcomes
It focuses on what government achieves with the money allocated.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Performance-based (results-oriented) budgeting:
Related MCQs
Audit of local government (local fund) accounts mainly examines:
A.
Only federal taxes
B.
Only foreign aid
C.
Receipts and expenditure of local bodies for compliance with applicable laws and rules
D.
Only defense spending
Correct answer is:
C. Receipts and expenditure of local bodies for compliance with applicable laws and rules
Do you agree with this answer?
An expansionary fiscal policy involves:
A.
Reducing government spending and raising taxes
B.
Increasing government spending or cutting taxes
C.
Raising interest rates
D.
Selling government bonds only
Correct answer is:
B. Increasing government spending or cutting taxes
Do you agree with this answer?
Observation of the client's physical inventory count mainly provides evidence of:
A.
Ownership of inventory
B.
Valuation of inventory at net realizable value
C.
Fraud in payroll
D.
Existence of inventory
Correct answer is:
D. Existence of inventory
Do you agree with this answer?
Zero-based budgeting (ZBB) requires that:
A.
Last year's budget be increased by inflation
B.
Every expenditure be justified from zero in each budget cycle
C.
Budgets be zero in the first year
D.
No deficit be allowed
Correct answer is:
B. Every expenditure be justified from zero in each budget cycle
Do you agree with this answer?
Which of the following is an example of non-tax revenue?
A.
Royalties and fees for government services
B.
Income tax
C.
Sales tax
D.
Customs duty
Correct answer is:
A. Royalties and fees for government services
Do you agree with this answer?
As production volume increases within the relevant range, fixed cost per unit:
A.
Decreases
B.
Increases
C.
Stays the same
D.
Becomes zero
Correct answer is:
A. Decreases
Do you agree with this answer?
Leave a Reply