Problem:
Establishing budgets for governmental entities takes on special significance because of the importance of governmental compliance with final fund budgets. Students need to understand this special emphasis in governmental accounting before applying it to specific situations.
Required:
Question 1: Discuss answers to the following questions and justify your response:
Question 2: Discuss budgetary accounting and how it is used in government accounting.
Question 3: Explain how budgets are used to help monitor financial performance.
Note: Please show how to work it out.