Free AGA GAFRB Exam Dumps

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Question No: 1

MultipleChoice

A basic financial statement that includes a budgetary comparison serves to

Options

Ademonstrate the ability of the entity to meet its commitments.

Bdemonstrate compliance with the legally adopted budget.

Cmeasure the service potential of physical and other resources.

Ddisclose 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

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