Cash-basis budgets help governments demonstrate interperiod equity.

Name: Cash-basis budgets help governments demonstrate interperiod equity.
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Question

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Cash-basis budgets focus on cash flows within a specific period and do not account for revenues and expenses in the periods they are earned or incurred, making it difficult to demonstrate interperiod equity, which is the concept of ensuring that current-year revenues are sufficient to pay for current-year services.

Cash-Basis Budgets Help Governments Demonstrate Interperiod Equity