Question

Because budgetary accounts are used by governments, their financial statements can never be said to be in accord with generally accepted accounting principles.

A. True
B. False

Answer 1

The statement is False. Governments can prepare financial statements in accordance with generally accepted accounting principles.

Step-by-step explanation:

The statement is False.

Although budgetary accounts are used by governments, their financial statements can be in accord with generally accepted accounting principles. Governments, like any other organization, have to comply with accounting principles and guidelines to ensure accuracy and transparency in their financial reporting.

For example, governments may follow the Generally Accepted Accounting Principles (GAAP) or International Public Sector Accounting Standards (IPSAS) to prepare their financial statements. These frameworks provide guidelines on how to record, report, and present financial information, ensuring consistency and comparability.