20) Non-balancing of operating budgets would lead to:

a.

Capital deficit

b.

Operating deficit

c.

Operating surplus

d.

Capital surplus

21-The government charges OMR 400,000 general property taxes for the year 2019. The amount collected till the year end accounted to OMR 360,000. It expects to collect the balance shortly after year-end. These taxes are accounted as unrestricted resources to be used for financing of operating activities that would contribute towards public welfare. During the year, the government incurred OMR 330,000 in general operating expenditures of which it actually paid OMR 310,000. To cover up the capital project fund deficit of 2018, the government had borrowed funds by issuing long term notes amounting to RO 50,000. A debt service fund was created and an amount of OMR 40,000 is transferred from the general fund to service the debt. Based on the above case, which among the following statements are true?

a.

The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 10,000

b.

The unrestricted resources are accounted in the Debt service fund and the cash balance in the fund statement amounts to RO OMR 90,000

c.

The unrestricted resources are accounted in the Debt service fund and the cash balance in the fund statement amounts to RO OMR 40,000

d.

The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 30,000