Multifamily Housing Program Financial Management Toolkit

Knowledge Check - Budgeting

Select the appropriate response to complete the statement and then, select the Submit button.

1. Budgeting is important for the following reasons:

A. Serves as a tool for planning
B. Forecasts revenues and expenses for the year
C. Helps control expenses
D. All of the above

2. Budgeting revenues to cover expenses guarantees that the organization will have sufficient cash.

True
False

3. It is better for finance managers to develop budgets internally and only share them with program managers when they are complete

True
False

4. When presenting a budget, management should be sure to:

A. Communicate how the budget aligns with organizational goals, annual action plans or strategies
B. Compare the budget to prior year actual revenues and expenses
C. Ensure the organization has cash to operate in a stable environment
D. All of the above

5. All of the following are purposes of budget controls EXCEPT:

A. Determine the likelihood that an activity can be completed within the amount budgeted for that activity
B. Verify that the cost per unit is aligned with identified expectations
C. Ensure that resources are being used for the proper purposes and are going to the correct projects
D. Identify sources that can be used to complete a project if the amount budgeted for an activity will be insufficient.