AGA GAFRB Exam - Topic 3 Question 22 Discussion

Question

AGA GAFRB Exam - Topic 3 Question 22 Discussion

A basic financial statement that includes a budgetary comparison serves to

A) demonstrate the ability of the entity to meet its commitments.

C) measure the service potential of physical and other resources.

D) disclose and document the restrictions on resources. A basic financial statement that includes a budgetary comparison (typically the Statement of Revenues, Expenditures, and Changes in Fund Balances -- Budget and Actual) is used to demonstrate whether the government complied with its legally adopted budget. This is a core element of accountability in governmental financial reporting and is required under GASB Statement No. 34. Relevant Reference: GASB Statement No. 34 -- Budgetary Comparison Statements GASB Codification Section 2400 -- Budgetary Accounting and Reporting GFOA Best Practices -- Budget Monitoring and Reporting Answer : B. demonstrate compliance with the legally adopted budget

Accepted Answer

B) demonstrate compliance with the legally adopted budget.

AGA GAFRB Exam - Topic 3 Question 22 Discussion

AGA GAFRB Exam - Topic 3 Question 22 Discussion

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