During the year, the City of Kent finds that, because of an economic contraction, its sales tax revenues are likely to be $100,000 less than anticipated and that police department expenditures are likely to exceed authorized appropriations by $100,000. The City of Kent needs to:

Question

Quizplus · Accepted Answer

When a budgetary revision takes place, the budgetary appropriation for one department may be reduced to supplement the appropriation amount for another department. In other cases, estimated revenues may be reduced and department appropriations or estimated fund balance reduced to maintain a balanced budget. In this case, the City chose to reduce budgetary fund balance.

During the Year, the City of Kent Finds That, Because