GASB Requires That Governmental Entities Present Their Budgeted-To-Actual Comparison Data

question 8

Multiple Choice

GASB requires that governmental entities present their budgeted-to-actual comparison data on which of the following bases of accounting?

• A)Budgetary basis.
• B)Cash basis.
• C)Modified accrual basis.
• D)Accrual basis.

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Definitions:

Subsidiary Entity

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of the subsidiary's voting stock.

Parent Entity

A business that controls one or more subsidiary companies.

Deferred Tax Asset

A financial item on a company's balance sheet that reduces future tax liabilities due to deductible temporary differences, losses, or credits.

Unrealised Profit

Profit that results from an increase in value of an asset that has not yet been sold and thus has not generated actual cash inflow.