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:

Satisfaction Levels

A measure of how goods or services meet or surpass customers' expectations.

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, representing their preferences.

Equal Satisfaction

A principle in consumer choice theory that suggests consumers allocate their resources to maximize satisfaction or utility.

Indifference

A state where a consumer has no preference between two or more choices.