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:

Arrears

A state of being behind in fulfilling obligations, such as payments on a loan, rent, or utilities.

Purchaser

An individual or entity that buys goods or services from a seller.

Payments

The act of giving money in exchange for goods, services, or to fulfil a legal obligation.

Chattel Mortgages

A loan agreement where personal movable property (chattel) is used as security for the loan, allowing the lender to take possession if the borrower defaults.