Final answer:
The statement is false; the budget creation and administration responsibility extends beyond the accounting department to senior management and the president. Budgeting involves planning for receipts and expenditures and differs across government levels. Federal spending facts often include misconceptions about the proportion of spending on defense, education, and foreign aid.
Step-by-step explanation:
The statement provided is false. The budget creation and its administration are not solely the responsibility of the accounting department. While the accounting department often plays a vital role in preparing financial reports and forecasts that contribute to the budgeting process, the responsibility for the budget itself and the administration of the budget typically lies with senior management and those in executive roles.
In the United States, the Budget and Accounting Act of 1921 established the president as the chief budget agenda setter, and the budget represents the president's policy goals for the upcoming fiscal year. This includes anticipated receipts from taxes and other revenue as well as federal government expenditures. Furthermore, each level of government—federal, state, and local—develops its own budget based on expected revenue and planned spending.
Regarding the True/False questions about federal spending, several misconceptions need to be clarified. For example, foreign aid constitutes only about 1% of federal spending and the share of the economy going to federal taxes has not increased substantially over time. Moreover, defense spending is not higher now than ever, either as a share of GDP or in real dollars. It is also important to note that education spending is much higher at the state and local levels, not at the federal level.