1. How can an agency detect fraud or embezzlement?

2. Explain the difference between a budget report and a cash report. Which has greater importance and when?

3. Why should an analyst review more than one year of financial statements before projecting an agency’s revenues and expenditures?

4. What is the difference between fixed and variable costs? Use a service provided by a government or nonprofit agency to explain the differences. Why is this difference important in budget preparation?

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