Final answer:
The statement is false; the 'actual' column in the budgetary comparison schedule is reported on the budgetary basis as well, which provides a direct comparison to the budget. GAAP amounts may be presented separately to reconcile the differences between the budgetary and GAAP bases.
Step-by-step explanation:
The statement, "Revenues and expenditures reported in the budgetary comparison schedule must be reported on the budget basis in the 'budget' column and on the GAAP basis in the 'actual' column," is false. In the context of governmental accounting, the budgetary comparison schedule typically includes a column for the original budget, a column for the final budget (which includes any legal amendments during the year), and a column for actual amounts on a budgetary basis.
For the 'actual' column, the amounts are indeed presented on the same budgetary basis as the budget to afford a consistent comparison. However, governmental entities also report financial statements in conformity with GAAP, which includes additional schedules that reconcile differences between budgetary basis and GAAP amounts.
Understanding the differences between budgetary comparisons and GAAP reporting is crucial in the field of government accounting, as these differences can significantly impact the presentation of the government's financial condition. Isolating the operations of a fiscal year, which begins on October 1 and ends on September 30 of the next year, is a fundamental concept when considering the budget deficit or surplus, the outcome of which is influenced by tax revenue and government spending.