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Flashcards in Chapter 4 Deck (12):
1

The process of allocating scarce resources among unlimited demands

Budgeting

2

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

Budget

3

Management plans in both businesses and governments

Approved Budgets

4

laws in governments

Legally Enacted Budgets

5

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

Appropriations

6

Legally approved levels of expenditures

Appropriations

7

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

estimates of revenues to be raised during the budget year

8

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

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

9

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

Official legal adoption of the budget

10

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

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

11

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

Budgetary Fund Balance

12

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

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