If a State Law Requires That Local Governments Prepare General

question 62

Multiple Choice

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP)

• A) The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis.
• B) The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis.
• C) Both the budgeted and actual amounts in the budgetary comparison schedule prepared as part of the required supplementary information (RSI)should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.
• D) Only a budgetary comparison schedule prepared for the appropriate state oversight body is required.