governmenal and not-for-profit accounting 5th chapter 3 solution.docVIP

Chapter 3 Issues of Budgeting and Control Questions for Review and Discussion  1. Capital budgets are closely tied to operating budgets in that governments and other not-for-profits must include current year capital expenditures in their operating budgets. In addition, if they issue debt to finance capital projects, they generally must service it out of operating funds. Further, once they complete the projects, they must maintain and repair them out of operating funds. 2. A flexible budget may be more important to business-type than to government-type activities because business-type activ