Many public organizations must spend all budgeted funds within the fiscal year-otherwise, the subsequent year's budget is __________.
A) increased by the unspent amount
B) not affected unless the deficit is repeated
C) automatically audited for questionable expenditures
D) reduced by the unspent amount

Question

Many public organizations must spend all budgeted funds within the fiscal year-otherwise, the subsequent year's budget is __________.
A) increased by the unspent amount
B) not affected unless the deficit is repeated 
C) automatically audited for questionable expenditures
D) reduced by the unspent amount

Quizplus · Accepted Answer

If organizations do not spend all their budgeted funds within the fiscal year, the subsequent year's budget is reduced by the unspent amount. This is done to encourage organizations to use their funds responsibly and not hold onto unused funds.

Many Public Organizations Must Spend All Budgeted Funds Within the Fiscal