Which of the following statements regarding government budgets is not true?
A) A budget should be enacted before the fiscal year begins and be integrated with the financial accounting system so that actual results can be compared to budgeted plans at regular intervals.
B) The budget's role is limited to inclusion in internal financial reports and budgetary compliance monitoring for those funds that have a legally approved budget.
C) Integrating the budget into the accounting system allows management to oversee individual unit performance and react quickly to variances between actual results and budgeted plans.
D) A budget is a plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the proposed means of financing them.

Question

Quizplus · Accepted Answer

The statement that the budget's role is limited to inclusion in internal financial reports and budgetary compliance monitoring for those funds that have a legally approved budget is not true. The budget also serves as a plan for achieving the organization's goals and objectives, guides decision making, and communicates financial priorities to stakeholders.

Which of the Following Statements Regarding Government Budgets Is Not