GASB and FASAB Standards Practice Test

The main idea here is how budgetary accounting uses control accounts to track the expected resources. The Estimated Revenues control account is a budgetary tool that holds the amount the government expects to receive from revenues. Since revenues are represented on the budgetary side with a credit balance, increasing the expected revenues is recorded as a credit to the Estimated Revenues control account. Therefore, when revenues are recorded, this control account is credited to reflect the rise in anticipated resources.

The other moments—closing the budget, recording expenditures, or creating encumbrances—do not specifically involve adjusting the Estimated Revenues control account in this way, since they pertain to closing the budget, spending authorities, or future commitments rather than updating the revenue estimate.