Question

Which of the following statements is not consistent with the GASB's ""Budgeting, Budgetary Control, and Budgetary Reporting Principle?""

A. An annual budget must be adopted using generally accepted accounting principles.
B. The accounting system should provide the basis for appropriate budgetary control.
C. Budgetary comparison schedules should be presented as required supplementary information for the General Fund and each major
special revenue fund for which an annual budget has been adopted.
D. The budgetary comparison schedule should present both the original and the final appropriated budgets for the reporting period.

Answer 1

Statement A, which requires an annual budget to be adopted using generally accepted accounting principles, is not consistent with the GASB's Budgeting, Budgetary Control, and Budgetary Reporting Principle.

Step-by-step explanation:

The statement that is not consistent with the GASB's Budgeting, Budgetary Control, and Budgetary Reporting Principle is A. An annual budget must be adopted using generally accepted accounting principles. While it is generally true that budgets should be adopted using generally accepted accounting principles, this is not a requirement specifically stated in the GASB's principle on budgeting. Instead, the GASB's principle focuses on other requirements such as providing the basis for appropriate budgetary control and presenting budgetary comparison schedules as required supplementary information. Therefore, statement A does not align with the GASB's Budgeting, Budgetary Control, and Budgetary Reporting Principle.