Note: This Is a Kaplan CPA Review Question

question 30

Multiple Choice

Note: This is a Kaplan CPA Review Question
When the budget of a governmental unit, for which the estimated revenues exceed the appropriations, is adopted and recorded in the general ledger at the beginning of the year, the budgetary fund balance account is

• A) Credited at the beginning of the year and debited at the end of the year.
• B) Credited at the beginning of the year and no entry made at the end of the year.
• C) Debited at the beginning of the year and no entry made at the end of the year.
• D) Debited at the beginning of the year and credited at the end of the year.

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Definitions:

Supplies

Items used in the daily operations of a business, not directly tied to the product or service being sold.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.

Building

A structure with a roof and walls, such as a house, school, or factory, constructed as a place for people to live, work, or carry out activities.

Adjustment

A change made to a financial record to correct or update the information.