Question

Many public organizations must spend all budgeted funds within the fiscal year–otherwise, the subsequent year's budget is _________.

1) Reduced
2) Increased
3) Maintained
4) Cancelled

Answer 1

If the budgeted funds are not fully spent within the fiscal year, the subsequent year's budget is reduced.

Step-by-step explanation:

In many public organizations, if the budgeted funds are not fully spent within the fiscal year, the subsequent year's budget is reduced.

This is because the government budget is based on projected spending needs, and if there is a surplus at the end of the year, it indicates that the organization did not require all the funds allocated to them.

By reducing the subsequent year's budget, the government aims to allocate funds more efficiently and avoid unnecessary spending.