A city formally adopted a budget at the beginning of the current year. Budgeted revenues were $500 and budgeted expenditures were $490. During the year actual revenues were $520 and actual expenditures were $480. Fund balance at the end of the current year in comparison to fund balance at the end of the preceding year will be
A) $10 greater.
B) $30 greater.
C) $40 greater.
D) $50 greater.

Question

Quizplus · Accepted Answer

The fund balance increases by the difference between actual revenues and actual expenditures. Actual revenues were $520 and actual expenditures were $480, resulting in a surplus of $40.

A City Formally Adopted a Budget at the Beginning of the Current