A surplus budget position means that an entity's:
A) income and expenditures are equal.
B) income for the period exceeds expenses.
C) expenditures for the period exceed revenues.
D) none of the above.

Question

Quizplus · Accepted Answer

A surplus budget position means that an entity's income for the period exceeds expenses. In other words, there is more money left over after all expenses have been paid. This is a positive financial position and indicates that the entity is generating a profit or has extra funds available for other purposes. Option A is incorrect because it refers to a balanced budget position rather than a surplus. Option C is incorrect because it describes a deficit budget position, where expenditures exceed revenue. Option D is incorrect because there must be a correct answer.

A Surplus Budget Position Means That an Entity's