Question

Under the dual-track accounting approach used in this text, recording the annual budget for the General Fund requires journal entries in the general journals of both the General Fund and governmental activities at the government-wide level.

a.True
b.False

Answer 1

The assertion that the annual General Fund budget requires journal entries in both the General Fund and governmental activities at the government-wide level is false; the budget is recorded only in the General Fund's ledger. Option b is correct.

Step-by-step explanation:

The statement regarding dual-track accounting and the recording of the annual budget for the General Fund is false. In governmental accounting, the dual-track approach involves separate entries for the governmental funds and the government-wide financial statements.

However, the budget itself is only formally adopted and recorded in the General Fund's general ledger, not at the government-wide level. The government-wide financial statements reflect actual results on an accrual basis, unlike the budgetary basis for the General Fund, which primarily records anticipated revenues and appropriations.