A Governmental Entity Has Formally Integrated the Budget into Its

question 45

Multiple Choice

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

• A) The entity overestimated property tax revenue it expected to be recognized.
• 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:

Maya

An advanced Mesoamerican civilization known for its intricate writing system, architecture, mathematics, and astronomical achievements.

Urna

A whorl of hair, represented as a dot, between the brows; one of the lakshanas of the Buddha.

Relief

A sculptural technique where the sculpted elements remain attached to a solid background of the same material, creating a design that projects from the surrounding surface.

Central Part

Refers to the middle or core area of an object, space, or concept, often considered the most important or focal point.