Which of the following is the best reason for preparing budgets for government entities on the cash basis?
A) Cash basis budgeting helps to achieve interperiod equity.
B) Cash basis budgeting helps to ensure that the government will receive no more in revenues than itis required to disburse.
C) Cash basis budgeting helps a government plan to have cash on hand to pay bills
D) Cash basis budgeting more accurately reflects the economic impact of fiscal activities.

Question

Quizplus · Accepted Answer

Cash basis budgeting is primarily focused on managing cash flows, ensuring that a government has the necessary cash available to meet its immediate financial obligations, such as paying bills.

Which of the Following Is the Best Reason for Preparing