Chapter 17, Problem 17.7Q

To determine

Budgetary aspect of governmental operations: the governmental accounting uses budgets to assist in management control and to provide legal authority to levy taxes, and collect revenue, and make expenditures in accordance with budget. A government unit may have several types of budgets which includes.

1. Operating budgets that specify expected revenue from various sources provided by law. The operating budget includes expected expenditures such as employees payrolls, supplies etc.
2. Capital budgets to provide information about proposed construction projects.

To explain: what is meant by budgetary accounting? Explain the accounting for expected revenue and anticipated expenditure?