Chapter 4

Question 1

The process of allocating scarce resources among unlimited demands

Answer 1

Budgeting

Question 2

an official dollars and cents plan of operation for a specific period of time

Answer 2

Budget

Question 3

Management plans in both businesses and governments

Answer 3

Approved Budgets

Question 4

laws in governments

Answer 4

Legally Enacted Budgets

Question 5

Legal authorizations to incur expenditures for various purposes that also limit legal authorization for incurring expenditures for specific purposes

Answer 5

Appropriations

Question 6

Legally approved levels of expenditures

Answer 6

Appropriations

Question 7

Expenditure authorizations in the budget are based in part on ____.

Answer 7

estimates of revenues to be raised during the budget year

Question 8

If revenues appropriated do not materialize, the government typically must ____.

Answer 8

reduce its appropriations and expenditures to avoid a deficit at year end

Question 9

The operation of the General Fund of a Governmental Unit begins with the ____.

Answer 9

Official legal adoption of the budget

Question 10

The legally adopted appropriations and revenue estimates 0 which are now laws - require which general ledger budgetary entry?

Answer 10

Estimated Revenues 427,000
Appropriations 423,000
Budgetary Fund Balance 4,000

Question 11

What account is used to record the budgeted increase or decrease in fund balance?

Answer 11

Budgetary Fund Balance

Question 12

Recording budgeted increase or decrease is recorded in the (Actual) Fund Balance Account rather than the Budgetary Fund Balance happens because?

Answer 12

They prefer for the balance of the fund balance account to be carried at its targeted year end balance instead of its beginning balance