The Budget and Accounting Act of 1921 established which agency?

• A. Bureau of the Budget
• B. General Accounting Office
• C. Congressional Budget Office
• D. Department of the Treasury

Answer: (A)

Centralizing and standardizing how the federal budget is created and presented is what's being tested. The Budget and Accounting Act of 1921 established the Bureau of the Budget within the President’s Executive Office to prepare a unified, centralized budget proposal for the entire government and to submit it to Congress. This gave the President a coherent plan and oversight over agency budget requests, replacing a more fragmented approach. The Bureau would later evolve into the Office of Management and Budget, continuing to shape how the budget is crafted and managed. The act did establish other important functions as well, such as creating the General Accounting Office to audit government accounts, but the agency specifically created to manage and present the budget is the Bureau of the Budget. The remaining options reflect entities that were created later or existed before 1921.