Question

Under federal budgetary accounting, appropriations are recorded with (debits/credits) and the status of the resources within the spending process is reflected with (debits/credits):

a) Debits, Debits
b) Debits, Credits
c) Credits, Debits
d) Credits, Credits

Answer 1

In federal budgetary accounting, appropriations are recorded as credits, and the expenditure and usage of these appropriated funds are recorded as debits.

Step-by-step explanation:

Under federal budgetary accounting, appropriations are recorded with credits, and the status of the resources within the spending process is reflected with debits. Therefore, the correct answer is c) Credits, Debits. Appropriations refer to the legal authority given by Congress to spend or obligate resources, and recording them as credits reflects the increase in budget authority. As money is spent and resources are used, these are tracked as debits, indicating the consumption of the appropriations.

Under federal budgetary accounting, appropriations are recorded with debits and the status of the resources within the spending process is reflected with credits. Under federal budgetary accounting, appropriations are recorded with debits and the status of the resources within the spending process is reflected with credits.