Because federal entities have both budgetary and financial reporting requirements, a dual-track accounting system is employed using budgetary and proprietary accounts.

Question

Quizplus · Accepted Answer

The accounting systems of federal agencies must serve both the external financial reporting needs mandated by the Chief Financial Officers' Act and the necessity of having internal budgetary controls over the spending of public resources. This is accomplished through the maintenance of two self-balancing sets of accounts, termed budgetary and proprietary accounts.

Because Federal Entities Have Both Budgetary and Financial Reporting Requirements