4. Is there a best type of budget for governments to use? Does this depend on the type of budget, explain.

5. Why do most governments budget on a cash or nearcash basis even though the cash basis does not capture the full economic costs of the activities in which they engage?

6. A political official boasts that the yearend excess of revenues over expenditures was significantly greater than was budgeted. Are favorable budget variances necessarily a sign of efficient and effective governmental management? Explain.