Budgetary Accounting

Question 1

What are the normal balances for the budgetary accounts?

Answer 1

-Opposite actual account

Question 2

What are Appropriations? (remember no such thing as “Estimated Expenditures”)

Answer 2

-Legally authorized spending limits

Question 3

What is the Budgetary Fund Balance?

Answer 3

• Offset account used to balance the budgetary entry

- Has no normal balance

Question 4

What are the only two usual entries for budgetary accounts during the year?

Answer 4

• Entry to set up the budget

- Entry to close it