Michael Is a Case Manager for a Homeless Shelter in a Large

question 12

Multiple Choice

Michael is a case manager for a homeless shelter in a large metropolitan city. Last week, the program director asked Michael to be the leader of the budget-planning committee. Michael was a member of the committee last year, and he agreed to lead this committee because of previous experience.
As Michael planned for the first meeting, he reviewed the minutes from the previous year's committee meetings and spoke with Angela, who led the previous year's committee. Angela described the different purposes of a budget, as well as the different features of a budget. She suggested that Michael create a list of all the different expenditure categories as a way to guide the discussion during the committee meetings.
Based on Angela's suggestion, Michael decided to create a list of expenditure categories. Which of the following should he include?
I.Salaries
II.Supplies
III.Grants
IV.Donations
V.Equipment
VI.       Travel
VII.     Fundraisers

• A)II, V, and VII
• B)I, II, III, V, and VI
• C)I, II, V, and VI
• D)IV, VI, and VII

---

Definitions:

Taxable Income

The amount of income used to calculate how much the entity owes in taxes to the federal, state, and/or local government.

Pretax Financial Income

The income of a company before taxes are deducted, often used in financial reporting and analysis.

Interperiod Tax Allocation

A method used in accounting to allocate income taxes over different periods to match taxes with the revenues they affect.

Future Enacted Tax Rates

Tax rates that have been passed into law but will go into effect at a future date, relevant for financial planning and reporting.