Which condition is true at year end when there are net revenues (revenues exceed expenditures) and no other financing sources or uses?

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Multiple Choice

Which condition is true at year end when there are net revenues (revenues exceed expenditures) and no other financing sources or uses?

Explanation:
Net revenues mean revenues are greater than expenditures, producing an increase in the fund balance. If there are no other financing sources or uses, the year-end condition simply reflects that revenues exceeded expenditures, with the fund balance rising by the amount of the net revenues. Transfers in or out aren’t involved here, and while encumbrances can exist, they don’t define this specific year-end condition.

Net revenues mean revenues are greater than expenditures, producing an increase in the fund balance. If there are no other financing sources or uses, the year-end condition simply reflects that revenues exceeded expenditures, with the fund balance rising by the amount of the net revenues. Transfers in or out aren’t involved here, and while encumbrances can exist, they don’t define this specific year-end condition.

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