Question

In fiscal year 2014 the Expenditures-2013 account represents

a. Amount of expenditures for goods ordered in 2013 that were received in 2014 and chargeable to appropriations of 2013.
b.The amounts of purchase orders issued in 2013 that were intended to be paid in full from appropriations for 2014.
c.Excess expenditures in 2013 that will be offset against appropriations for 2014.
d.Goods or services received in 2013 which the government has no record of ordering.

Answer 1

The Expenditures-2013 account typically includes expenditures for goods ordered in the previous year that are received and recorded in the fiscal year 2014 budget, adhering to the accrual method of accounting.

Step-by-step explanation:

In fiscal year 2014, the Expenditures-2013 account represents the amount of expenditures for goods ordered in 2013 that were received in 2014 and chargeable to appropriations of 2013.

This accounting entry deals with the principle of accrual accounting in government budgeting, whereby expenditures are recorded when goods or services are received, regardless of when payment is made.

This ensures that the expenditures are matched with the correct fiscal year's budget, reflecting the annual financial activity accurately.

The budget process involves the President submitting a proposed federal budget to Congress, highlighting revenues and proposed expenditures.

Once the budget is developed and submitted, Congress holds the power to approve, amend, or reject the President's proposals.

It's important to note that state and local governments also have significant expenditures, as they manage key public services such as education, healthcare, and infrastructure. Unlike the federal government, most states are required by law to maintain a balanced budget.