Final answer:
The GASB Budgeting Principle states that an annual budget should be adopted by every D. governmental fund type except capital projects funds.
Step-by-step explanation:
The GASB (Governmental Accounting Standards Board) Budgeting Principle states that an annual budget should be adopted by every governmental fund type except capital projects funds. This means that for each type of fund used in government accounting, such as the General Fund, Special Revenue Funds, Debt Service Funds, and others, an annual budget should be created and adopted.
For example, if a local government has multiple funds, such as a General Fund, which is used for day-to-day operations, and a Capital Projects Fund, which is used for major infrastructure projects, the GASB Budgeting Principle requires that an annual budget be adopted for the General Fund, but not for the Capital Projects Fund.
Overall, the GASB Budgeting Principle ensures that there is a clear and transparent process for budgeting and managing public funds, allowing governments to allocate resources effectively and plan for their financial needs.