GASB Standards Contain All of the Following in Its Three-Part

question 65

Multiple Choice

GASB standards contain all of the following in its three-part budgetary principle except:

• A) An annual budget should be adopted by every governmental unit.
• B) The accounting system should provide the basis for appropriate budgetary control.
• C) Budgetary comparisons should be included in the appropriate financial statement and schedules for governmental funds for which an annual budget has been adopted.
• D) None of the above; all would be included

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Definitions:

Invoice

A document issued by a seller to a buyer, detailing a transaction and requesting payment.

Non-sufficient Funds

A situation where a bank account does not have enough money to cover a transaction, often resulting in a fee.

Uncollectible Account

An account receivable that is deemed unrecoverable from a debtor, often written off as a bad debt by the company.

Purchases Journal

A specialized accounting journal used to record all purchase transactions, typically for inventory or supplies.