The variances reported in the ‘‘ﬁnal’’ budget-to-actual comparisons incorporated in the ﬁnancial statements of many governments may be of no value in revealing the reliability of budget estimates made at the start of the year. Why? How can you rationalize this limitation of the budget-to-actual comparisons?
Answer to relevant QuestionsIn what way will budgetary entries and encumbrances affect amounts reported on year-end balance sheets or operating statements? Select the best answer.1. Upon ordering supplies a government shoulda. Debit encumbrances and credit reserve for encumbrancesb. Debit reserve for encumbrances and credit encumbrancesc. Debit expenditures and credit ...The following schedule shows the amounts (in thousands) related to expenditures that a city welfare department debited and credited to the indicated accounts during a year (not necessarily the year-end balances), excluding ...Review the budget note to the City of Raleigh’s ﬁnancial statements presented in the previous problem. Assume that the city engaged in the following transactions in 2014 and 2015:• In 2014 it signed a service contract ...Why is a choice of basis of accounting unavoidably linked to measurement focus?
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