A Tavares administrative budget has $12,000 contingency. Management approves a $3,900 transfer to office technology. What contingency remains?
Correct Answer
A) $8,100
Remaining contingency equals beginning contingency less the approved transfer.
Why This Is the Correct Answer
Remaining contingency equals beginning contingency less the approved transfer.
Why the Other Options Are Wrong
Option B: $12,000
$12,000 is above the supported result for budget transfer control; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $86,600
$86,600 is above the supported result for budget transfer control; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $3,900
$3,900 is below the supported result for budget transfer control; it likely uses the wrong base, period, or account bucket.
Memory Technique
Remaining and contingency live in different drawers; Office Manager tells which opens.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Budget Transfers and Approvals; confirm the administrative procedure and required supporting record.
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