The County Determined It Needed to Prepare a Budget Amendment

question 40

Multiple Choice

The county determined it needed to prepare a budget amendment to reflect a decrease in charges for services of $100,000 and an increase in public safety expenditures of $150,000. What will be the effect of these two adjustments on the Budgetary Fund Balance account?

• A) Budgetary Fund Balance will be debited $250,000.
• B) Budgetary Fund Balance will be credited $250,000.
• C) Budgetary Fund Balance will be debited $50,000.
• D) Budgetary Fund Balance will be credited $50,000.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, but not necessarily indicating causation.

Prediction Error

The difference between observed values and the values predicted by a model.

Intercept

In mathematics and statistics, the point at which a line or curve intersects a given axis on a graph.

Predicted Income

An estimate of future income based on variables such as education, occupation, and previous earnings.