A Governmental Entity Has Formally Integrated the Budget into Its

question 17

Multiple Choice

A governmental entity has formally integrated the budget into its accounting records.At year-end the ledger account "Revenues from property taxes" has a debit balance.Which of the following is the best explanation for the debit balance?

• A)The entity overestimated property tax revenue when preparing its budget.
• B)The entity underestimated property tax revenue when preparing its budget.
• C)The entity collected more in property taxes than it anticipated.
• D)There is no logical explanation; revenue accounts usually do not have debit balances.

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Definitions:

Compounded Semi-Annually

Interest calculation method where the accrued interest is added to the principal sum twice a year, leading to an increase in future interest amounts.

Equal Payments

Regular payments of the same amount over a specified period, often used in loan repayment or investment plans.

Compounded Monthly

Interest calculated on the principal sum and also on the accumulated interest of previous periods of a deposit or loan, compounded every month.

Equal Payments

Payments that are the same in amount, typically referring to installments paid over a certain period of time.