Under budgetary accounting, when a government uses the budgetary basis, what is the effect on the reported actual amounts in the budgetary comparison schedule?

• A. They are identical to GAAP amounts.
• B. They are based on cash basis only.
• C. They may differ from GAAP amounts.
• D. They are calculated using accrual basis.

Answer: (C)

The key idea is that budgetary accounting uses a budgetary basis, which is separate from GAAP. In the budgetary comparison schedule, the actual amounts are measured using this budgetary basis—often focusing on appropriations and spendable resources and recognizing expenditures and appropriations in a manner tied to the budget rather than to GAAP rules. Because GAAP uses accrual (or modified accrual for governmental funds) and records items like capital assets, depreciation, and long‑term liabilities differently, the numbers that appear in the budgetary comparison schedule don’t have to match GAAP amounts. They reflect the budgetary measurement, not GAAP, so they may differ.