Question

GASB requires governments to record budgets but not encumbrances.

a) True
b) False

Answer 1

GASB requires governments to record budgets and encumbrances.

Step-by-step explanation:

False. GASB (Governmental Accounting Standards Board) requires governments to record budgets and encumbrances. Encumbrances are commitments to spend funds in the future, such as purchase orders or contracts. The recording of both budgets and encumbrances is important for accurate financial reporting and tracking of government expenditures and commitments.