Assume Estimated Revenues Exceed Appropriations

question 21

Multiple Choice

Assume estimated revenues exceed appropriations. When the budget for the General Fund is recorded, the journal entry will include:

• A) a credit to Budgetary Fund Balance.
• B) a credit to Estimated Revenues Control.
• C) a debit to Appropriations Control.
• D) a credit to Budgetary Fund Balance -- Reserve for Encumbrances.

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Definitions:

Statistical Arbitrage

A quantitative trading strategy that seeks to exploit price discrepancies between related financial instruments by using complex statistical models and algorithms.

Long Term Capital Management

A hedge fund management firm famous for its collapse in 1998, highlighting the risks of using extensive leverage and derivatives.

Market-neutral Strategies

Investment strategies that seek to achieve returns independent of the direction of the overall market by simultaneously buying and selling related securities.

Convergence Arbitrage

A strategy involving the purchase of a security in one market and simultaneous sale in another, exploiting differences in prices as they converge.