When closing the books for the General Fund,an excess of revenues over expenditures and encumbrances would be credited to Fund Balance.

Question

Quizplus · Accepted Answer

This is true. Any excess of revenues over expenditures and encumbrances represents a surplus, which increases the Fund Balance. Similarly, any deficit (that is, when expenditures and encumbrances are greater than revenues) would be debited to Fund Balance, decreasing it.

When Closing the Books for the General Fund,an Excess of Revenues