Question

In 2012, the city of Miketown collected $250,000 in taxes and spent $350,000. In 2012, the city of Miketown had a A) budget surplus of $100,000. B) budget surplus of 57%. C) budget deficit of $100,000. D) budget deficit of $200,000.

Answer 1

Answer:

Option C is correct

C) budget deficit of $100,000.

Explanation:

A budget deficit or surplus is the difference between the estimated expenditures and revenue.

A  budget surplus occurs where the estimated total revenue is greater that the estimated total expenditure.

On the other hand, it is deficit where the estimated revenue is less than the estimated expenditures

For City of Miketown, the budget deficit =

250,000 - 350,000

=$(100,000)