Question

The FASAB’s Statement of Accounting and Reporting Concepts Statement No. 1 identifies four objectives of federal financial reporting. The requirement to be publicly accountable for laws and regulations related to spending tax revenues relates to which of the four objectives?

Answer 1

Answer:

The correct answer is c) Budgetary integrity.

Explanation:

This principle means that every time a budget is made, all the forecasts for resources and all expenses must be presented in full without any direct compensation between them. An example could be when collecting a tax, which must be presented in a consolidated manner in the budget, that is, the expenses incurred in order to collect it should not be discounted.