Question

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order, the department's available balance of appropriations for supplies will be:

Answer 1

The correct answer is Increased.

Step-by-step explanation:

Any difference in favor will mean an increase in the supply budget, and must be adjusted each time the actual sale price is known. In the opposite case, where the budgeted value is greater than what must actually be paid for the supplies, then it is said that the available balance will decrease according to the existing difference. In this case, the appropriate adjustment must also be made to recognize the total balance available for execution.