Question

The balance of Expenditures, Revenues and Other Financing Sources and Uses accounts are closed to _______ at year-end. (May be 1, 2 or 3 words) A. The General Fund B. Fund balance C. Budgetary fund balance D. Expenditure control E. Expenses

Answer 1

Answer:

The answer is: B) Fund balance

Explanation:

The government balance sheet is different from a regular business balance sheet:

Fund balances = current assets and deferred outflow of resources - current                       liabilities and deferred inflow of resources

The government operating statement (equivalent to an of income statement in a company), also called Balance of Expenditures, Revenues and Other Financing Sources and Uses accounts consists of:

• Revenues
• Other financing sources
• Expenditures
• Other financing uses

So the government uses different terms since they don't operate for profit, so their accounting is different, they have surplus instead of profit and deficit instead of loss.