Types of Budgets in Higher Education: A Comprehensive Guide

Question 1

Which of the following is NOT a type of budget commonly used in higher education institutions in the United States?

Accepted Answer

Research budget

Answer

Operating budget

Answer

Capital budget

Answer

Cash flow budget

Question 2

The operating budget primarily focuses on:

Accepted Answer

Day-to-day operations and expenses

Answer

Long-term capital expenditures

Answer

Cash inflows and outflows

Answer

Research and development projects

Question 3

Which of the following is a key characteristic of a capital budget in higher education?

Accepted Answer

Involves large, long-term investments

Answer

Covers a period of one fiscal year

Answer

Focuses on cash flow management

Answer

Is updated frequently throughout the year

Question 4

The cash flow budget primarily serves to:

Accepted Answer

Track the movement of cash

Answer

Allocate funds for specific projects

Answer

Project future financial performance

Answer

Monitor compliance with accounting standards

Question 5

Which of the following is typically NOT included in an operating budget?

Accepted Answer

Depreciation

Answer

Salaries and wages

Answer

Supplies

Question 6

In the context of higher education financial management, which type of budget outlines the institution's anticipated revenues and expenditures for a specified period, typically a fiscal year?

Accepted Answer

Operating Budget

Answer

Cash Flow Budget

Answer

Strategic Budget

Answer

Capital Budget

Question 7

A budget specifically focused on acquiring, constructing, or improving physical assets, such as buildings or equipment, is known as:

Accepted Answer

Capital Budget

Answer

Operating Budget

Answer

Cash Flow Budget

Answer

Program Budget

Question 8

Which of the following is NOT considered a primary component of a cash flow budget in higher education?

Accepted Answer

Net Income

Answer

Operating Cash Flows

Answer

Financing Cash Flows

Answer

Investing Cash Flows

Question 9

The process of aligning a budget with an institution's strategic plan and long-term goals is referred to as:

Accepted Answer

Strategic Budgeting

Answer

Rolling Budgeting

Answer

Zero-Based Budgeting

Answer

Incremental Budgeting

Question 10

Which budgeting technique requires a justification for every expense from scratch, regardless of historical funding levels?

Accepted Answer

Zero-Based Budgeting

Answer

Activity-Based Budgeting

Answer

Rolling Budgeting

Answer

Incremental Budgeting

Question 11

A budget that is regularly updated and revised, typically on a monthly or quarterly basis, to reflect changes in circumstances is known as a:

Accepted Answer

Rolling Budget

Answer

Incremental Budget

Answer

Zero-Based Budget

Question 12

In higher education budgeting, a budget that allocates resources based on the specific programs or activities of the institution is termed a:

Accepted Answer

Program Budget

Answer

Capital Budget

Answer

Strategic Budget

Answer

Operating Budget

Question 13

The primary purpose of a cash flow budget in higher education financial management is primarily to:

Accepted Answer

Forecast the Institution's Liquidity Position

Answer

Estimate Capital Expenditure Requirements

Answer

Plan for Future Revenue Streams

Question 14

Which type of budget outlines the institution's anticipated revenues and expenses for a specific fiscal period, including its operations and day-to-day activities?

Accepted Answer

Operating Budget

Answer

Cash Flow Budget

Answer

Capital Budget

Question 15

Which type of budget focuses on the acquisition, financing, and replacement of long-term assets, such as buildings, equipment, and infrastructure?

Accepted Answer

Capital Budget

Answer

Cash Flow Budget

Answer

Operating Budget

Answer

Performance Budget

Question 16

Which of the following is a key component of a cash flow budget, which tracks the institution's inflow and outflow of cash?

Accepted Answer

Net change in cash

Answer

Revenue projections

Answer

Expense projections

Answer

Asset depreciation

Question 17

Which type of budget allocates resources based on specific programs, projects, or activities within the institution?

Accepted Answer

Program Budget

Answer

Performance Budget

Answer

Zero-based Budget

Answer

Incremental Budget

Question 18

Which budgeting method involves starting from a zero base and justifying all expenses, rather than relying on historical spending patterns?

Accepted Answer

Zero-based Budgeting

Answer

Incremental Budgeting

Answer

Performance Budgeting

Answer

Value-based Budgeting

Question 19

Which budgeting approach focuses on linking funding to specific performance goals and outcomes, emphasizing accountability and efficiency?

Accepted Answer

Performance Budgeting

Answer

Activity-based Budgeting

Answer

Value-based Budgeting

Answer

Program Budgeting

Question 20

Which budgeting technique allocates resources based on historical spending patterns, with a fixed percentage increase or decrease applied each year?

Accepted Answer

Incremental Budgeting

Answer

Program Budgeting

Answer

Zero-based Budgeting

Answer

Activity-based Budgeting

Question 21

Which type of budget provides a comprehensive overview of an institution's financial position, including all of its financial activities and resources?

Accepted Answer

Comprehensive Budget

Answer

Capital Budget

Answer

Operating Budget

Answer

Performance Budget

Question 22

Which budget is used to project an institution's financial situation under different scenarios, such as changes in enrollment or economic conditions?

Accepted Answer

Sensitivity Budget

Answer

Variance Budget

Answer

Master Budget

Answer

Capital Budget

Question 23

Which budgeting approach involves comparing actual results to budgeted amounts to identify variances, analyze performance, and make necessary adjustments?

Accepted Answer

Variance Analysis

Answer

Performance Budgeting

Answer

Zero-based Budgeting

Answer

Value-based Budgeting