Which of the Following Statements Is Not Consistent with the GASB's

question 26

Multiple Choice

Which of the following statements is not consistent with the GASB's "Budgeting, Budgetary Control, and Budgetary Reporting Principle"?

• A) An annual budget must be adopted using generally accepted accounting principles.
• B) The accounting system should provide the basis for appropriate budgetary control.
• C) Budgetary comparisons should be presented for the General Fund and each major special revenue fund for which an annual budget has been adopted.
• D) The budgetary comparisons should present both the original and the final appropriated budgets for the reporting period.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given point in time.

Real Wages

Income from work adjusted for the inflation rate, indicating the true buying power of the earnings.

Profit-Maximizing Wage

The wage level at which a firm maximizes its profits by balancing the cost of labor with productivity.

Labor Supply Data

Information and statistics about the workforce available for employment in an economy, including numbers, demographics, and skills.