Q35:

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.

Expenditures are $50,000 greater than Revenues

b.

Estimated revenue are $50,000 greater than Appropriations

c.

Appropriations are $50,000 greater than estimated revenues.

d.

Revenues are $50,000 greater than Expenditures

Q36;

closer control is maintained over expenditures by using appropriation, encumbrances, and allotments.

a.

True

b.

False