Question

Which of the following statements is true concerning the recording of a budget? a. At the...

Which of the following statements is true concerning the recording of a budget?

a.

At the beginning of the year debit Appropriations.
b.

At the beginning of the year debit Estimated Revenues.
c.

Budget information is only recorded in the General Fund.
d.

Budgets should not be used as a means of evaluating performance.
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Answer #1

Ans: b is correct

At the beginning of the year debit estimated revenus to record revenues of the city,

Because based upon revenue expenditure should be planned for such year

if the revenues specially restricted such amount should be transferred to separate revenue Account

Option a is in correct because appropriations are credited at the end of the year

Option D is incorrect because budget is necessary for performance evaluation with actuals

Option c Budget information is available at general fund is also incorrect

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