Question

Under GASB standards, every government, regardless of its size, is instructed to prepare a cash budget for each month of the fiscal year.

A. True.
B. False.

Answer 1

False. The GASB does not require governments to prepare monthly cash budgets under its standards.

Step-by-step explanation:

False.

Under GASB (Governmental Accounting Standards Board) standards, governments are not required to prepare a cash budget for each month of the fiscal year regardless of their size. The GASB establishes accounting and financial reporting standards for state and local governments in the United States, but it does not mandate the preparation of monthly cash budgets. Instead, the GASB focuses on providing guidance for financial reporting and accountability.