The county determined it needed to prepare a budget amendment to reflect a decrease in charges for services of $100,000 and an increase in public safety expenditures of $150,000. What will be the effect of these two adjustments on the Budgetary Fund Balance account?
A) Budgetary Fund Balance will be debited $250,000.
B) Budgetary Fund Balance will be credited $250,000.
C) Budgetary Fund Balance will be debited $50,000.
D) Budgetary Fund Balance will be credited $50,000.

Question

Quizplus · Accepted Answer

The decrease in charges for services (revenue) by $100,000 and the increase in expenditures by $150,000 both reduce the Budgetary Fund Balance, leading to a total debit of $250,000.

The County Determined It Needed to Prepare a Budget Amendment