A county general fund budget includes budgeted revenues of $600 and budgeted expenditures of $595. Actual revenues for the year were $610. To close the Estimated Revenues account at the end of the year
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
question 19
A county general fund budget includes budgeted revenues of $600 and budgeted expenditures of $595. Actual revenues for the year were $610. To close the Estimated Revenues account at the end of the year
a. Debit Estimated Revenues $10
b. Credit Estimated Revenue $10
c. Debit Estimated Revenues $600
d. Credit Estimated Revenues $600
Question 20
Hill City uses encumbrance accounting to control expenditures. However, it charges the cost of outstanding purchase commitments to expenditures in the year they are received, not in the year they are ordered. If Hill City had $5,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $4,900, what would be the impact on total Fund Balance for Year 2?
a. Total Fund Balance at the end of Year 2 would be $4,900 less than at the end of Year 1.
b. Total Fund Balance at the end of Year 2 would be $100 less than at the end of Year 1.
c. Total Fund Balance at the end of Year 2 would be $100 greater than at the end of Year 1.
d. Total Fund Balance at the end of Year 2 would be same as it was at the end of Year 1.
Question 21
Which of the following is the primary reason why governments formally integrate their legally adopted budget into their accounting systems?
a. It is required by GASB.
b. It enables the government to better control its expenditures.
c. It keeps the government from overspending its budget.
d. It helps a government by letting it know when it is in danger of overspending its budget.
Question 22
Neither the GASB not the FASB set standards for budgetary accounting.
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Question 23
Lincoln County uses encumbrance accounting to control expenditures. It charges the cost of outstanding purchase commitments to expenditures in the year they are ordered, not in the year they are received. If the County had $7,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $7,800, what would be the impact on total Fund Balance for Year 2?
a. Total Fund Balance at the end of Year 2 would be $7,800 less than at the end of Year 1.
b. Total Fund Balance at the end of Year 2 would be $800 less than at the end of Year 1.
c. Total Fund Balance at the end of Year 2 would be $800 greater than at the end of Year 1.
d. Total Fund Balance at the end of Year 2 would be same as it was at the end of Year 1
question 24
State and local government s budget to actual comparisons present both original and final budget amounts.
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