Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

In budgetary accounting, estimated revenues are influenced by various factors that provide an overall view of the expected financial resources available to a government entity. The correct choice highlights that both appropriations and anticipated changes in fund balance play a significant role in determining estimated revenues.

Appropriations refer to the legal authorization granted by a legislative body for expenditures and obligations to be incurred. They establish the framework within which the government can spend funds, thus influencing the revenue estimates that are necessary to support those expenditures. This legal capacity guides budget planners in forecasting how much revenue needs to be generated or collected.

Anticipated changes in the fund balance also affect estimated revenues because they represent the residual resources that can be utilized in the new fiscal period. A positive change in the fund balance indicates that there will be additional funds available for appropriation, while a negative change may signal a need for increased revenue to cover potential shortfalls. Therefore, a careful analysis of these anticipated changes is necessary when estimating total revenues for the upcoming budget.

In contrast, the other options do not fully account for the comprehensive impact on estimated revenues. For instance, while encumbrances and expenditures are related to spending and can influence budgetary outcomes, they do not inherently affect the estimation process of revenues themselves. Cash