Which term describes a budget where revenue exceeds expenditure?

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Prepare confidently for the Social Studies BJC Set 2 Test. Utilize flashcards, receive hints and detailed explanations for each multiple-choice question. Ensure your success on the exam!

Multiple Choice

Which term describes a budget where revenue exceeds expenditure?

Explanation:
A budget surplus is when revenue exceeds expenditures. That extra money means the government or organization has more income than it spends, which can be saved for future needs or used to reduce debt. For example, if revenue is 120 and expenditures are 100, the surplus is 20. This differs from a budget deficit, where spending exceeds revenue, and from a balanced budget, where revenue equals expenditures. The term revenue gap isn’t a standard way to describe this situation.

A budget surplus is when revenue exceeds expenditures. That extra money means the government or organization has more income than it spends, which can be saved for future needs or used to reduce debt. For example, if revenue is 120 and expenditures are 100, the surplus is 20. This differs from a budget deficit, where spending exceeds revenue, and from a balanced budget, where revenue equals expenditures. The term revenue gap isn’t a standard way to describe this situation.

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