Which of the following will increase the fund balance of a government at the end of the fiscal year?
A) The sum of revenues and other financing sources is more than the sum of expenditures and other financing uses.
B) Expenditures are more than the difference between revenues and the excess of other financing sources over other financing uses.
C) Revenues are less than the sum of expenditures, other financing sources, and other financing uses.
D) The sum of fund balance, revenues, and other financing sources is more than the sum of expenditures and other financing uses.

Question

Quizplus · Accepted Answer

Option A states that the sum of revenues and other financing sources is more than the sum of expenditures and other financing uses, which means that the government generated more income than it spent, leading to an increase in fund balance.

Which of the Following Will Increase the Fund Balance of a Government