Q3 (10 Points)

Answer the following questions with your own words

1. Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of capital assets?

2. How governmental units manage their expenditures by using the budget and encumbrances?

3. What is the operating budget ?

4. What is the approach for budgeting in governmental organizations? And what is the disadvantages for this approach?

5. Why the use of budget in governmental organizations is that important?