Question

Budgetary Fund balance will be (debited/credited) ______ if estimated revenues and other financing sources exceed budgeted expenditures and other uses

Answer 1

The Budgetary Fund balance will be credited if estimated revenues exceed budgeted expenditures, indicating a budget surplus.

Step-by-step explanation:

When estimating a government budget, if estimated revenues and other financing sources exceed budgeted expenditures and other uses, the Budgetary Fund balance will be credited.

This is because the budget reflects a surplus, meaning that the government expects to collect more money than it will spend within a fiscal year. A surplus can decrease the need to borrow and the total debt, whereas a deficit, where expenses outstrip revenues, would require borrowing to cover the shortfall.