When the Chief Executive of a Governmental Unit Submits a "Balanced

question 14

Multiple Choice

When the chief executive of a governmental unit submits a "balanced budget" to the legislative body,it usually means that:

• A)the budget is balanced on the full accrual basis of accounting
• B)the budget is balanced in accordance with generally accepted accounting principles
• C)proposed expenditures do not exceed estimated monies available for the year
• D)proposed expenditures do not exceed estimated tax revenues to be raised during the year

---

Definitions:

Permanent/Temporary

Describes the nature of employment or accounting entries; permanent implies longevity or continuity, whereas temporary indicates a limited duration or interim status.

Normal Balance

The normal balance is the side (debit or credit) of an account that is expected to have a higher balance based on the accounting equation.

Financial Statement(s)

Reports summarizing the financial performance, position, and cash flows of a business over a specified period, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Defines classifications of accounts in accounting where permanent accounts refer to balance sheet items that carry over into the next fiscal period, while temporary accounts are closed at the end of each accounting period.