A Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget

question 23

Multiple Choice

A statement of revenues, expenditures, and changes in fund balances-budget and actual is:

• A) Required by GAAP for the General Fund, special revenue funds, and all other governmental fund types for which an annual budget has been adopted.
• B) Required by GAAP for internal management reports only; not permitted for external financial reporting.
• C) Required by GAAP for all governmental fund types.
• D) Optional under GAAP, as long as a budgetary comparison schedule is presented.

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Definitions:

Cost Reconciliation

The process of analyzing and adjusting differences between actual costs and standard or budgeted costs.

Process Costing

An accounting method typically used in manufacturing, where costs are assigned to batches or processes, useful for products that are indistinguishable from each other.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Process Costing

A costing method used for homogenous products, where costs are accumulated throughout the production process.