_____ Which of the following statements is true regarding budgetary accounts?
A) They are not recorded in the general ledger.
B) They are always closed out at the end of the year.
C) They may or may not impact the balances in the actual operating accounts at year-end.
D) Their use is a departure from GAAP.
E) None of the above.

Question

_____	Which of the following statements is true regarding budgetary accounts?
A) They are not recorded in the general ledger.
B) They are always closed out at the end of the year.
C) They may or may not impact the balances in the actual operating accounts at year-end.
D) Their use is a departure from GAAP.
E) None of the above.

Quizplus · Accepted Answer

Budgetary accounts are indeed closed out at the end of the fiscal year. They are temporary accounts used for planning and control purposes, and their balances are not carried over into the next fiscal year.

_____ Which of the Following Statements Is True Regarding Budgetary Accounts