If a credit was made to the fund balance in the process of recording a budget for a governmental unit, it can be assumed that:
A) estimated expenses exceed actual revenues.
B) actual expenses exceed estimated expenses.
C) estimated revenues exceed appropriations.
D) appropriations exceed estimated revenues.

Question

Quizplus · Accepted Answer

When a credit is made to the fund balance in the process of recording a budget for a governmental unit, it indicates that the estimated revenues for the period exceed the appropriations (or budgeted expenses), which is option C. This is because the budgeting process involves estimating both revenues and expenses for a future period, and if revenues are expected to be higher than expenses, the difference would increase the fund balance.

If a Credit Was Made to the Fund Balance in the Process