Chapter 18, Problem 18.2Q

To determine

Budgetary of government operation: government accounting uses budgets to assist the managerial control and to provide the legal authority to levy taxes, and collect revenue and make expenditure according to budgets. A government unit may have several types of budgets such as

Operating budget that specifies expected revenue from various sources of revenue. It includes expected expenditures such as employees payrolls supplies and goods and services obtained.

The capital budgets are prepared to provide information about proposed construction projects capital budgets are used in capital project funds.

To explain:the use of capital budgets and operating budgets by government funds.