Q 14 :

Budget for the city was adopted and recorded on January 1 of the year. After recording the budget, the accounting records showed a debit balance of $50,000 in the budgetary fund balance account. What does this indicate?

a.

Appropriations are $50,000 greater than estimated revenues.

b.

Estimated revenue are $50,000 greater than Appropriations

c.

Revenues are $50,000 greater than Expenditures

d.

Expenditures are $50,000 greater than Revenues

Q16 :

Which of the following require an adjusting entry to the budget

a.

Appropriations are overestimated and estimated revenues are underestimated.

b.

Estimated revenue more than actual revenue.

c.

Actual revenue more than estimated revenue.

d.

Appropriations are more than expenditures.