"Capital Budget" Is Another Name for the "Operational Budget

question 29

True/False

"capital budget" is another name for the "operational budget"

Recognize the importance of liquidity order in presenting current assets and liabilities in financial statements.

Understand the distinction between physical and intangible assets and their presentation in financial reports.

Understand the principles and calculations behind common financial ratios and their implications on a company's financial health.

Analyze the components and importance of financial statements, including the statement of financial position and income statement.

---

Definitions:

Governmental Fund Types

Types of funds used by governmental entities to account for their financial resources, including general, special revenue, debt service, capital projects, and permanent funds.

Modified Approach

Modified Approach is a method in governmental accounting allowing certain assets to be reported at historical cost, exempt from the regular depreciation accounting if they are maintained at predefined condition levels.

Infrastructure Assets

Long-term physical assets that are critical for providing public services, including roads, bridges, and water supply systems.

Maintenance Costs

Expenses incurred to keep an asset in working order or restore it to proper condition; does not improve upon the original asset.