When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:
A) Credited to Budgetary Fund Balance.
B) Debited to Budgetary Fund Balance.
C) Debited to Encumbrances Outstanding.
D) Credited to Encumbrances Outstanding.

Question

Quizplus · Accepted Answer

When Estimated Revenues exceed Appropriations in a government's budget, there is a surplus. This surplus is credited to the Budgetary Fund Balance, which represents the government's available resources for future budgetary needs. Therefore, choice A is the correct answer as it reflects the proper accounting treatment for the surplus funds.

When the Budget of a Government Is Adopted and Estimated