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Balanced budget requirements are legal compliance rules requiring expenditures not exceed revenues. Efficiency (Option A) and interperiod equity (Option B) are broader concepts. Profit maximization (Option D) is irrelevant. Exam 1 highlights legal compliance as fundamental in government budgeting. Option C is correct.

Municipal governments rely most heavily on property taxes to fund schools, police, fire, and local services. Federal grants (Option A) supplement but are not the largest. Sales taxes (Option B) are more significant at the state level. Payroll taxes (Option D) fund federal programs. Exam 1 highlights revenue structures by level of government. Option C is correct.

The CFO Act of 1990 mandated audited financial statements for major federal agencies. GPRA (Option B) emphasizes performance. FMFIA (Option C) requires internal control reviews. Antideficiency (Option D) prevents overspending. Exam 1 highlights CFO Act’s accountability role. Option A is correct.

Special Revenue Funds account for revenues restricted for specific purposes other than debt or capital projects. A fuel tax restricted to road maintenance belongs here. The General Fund (Option A) is unrestricted. Internal Service (Option C) supports internal operations. Capital Projects (Option D) is for construction. Exam 2 stresses classification accuracy. Option B is correct.

Enterprise Funds account for activities financed by user charges to external customers, like toll roads or airports. Special Revenue (Option A) is for restricted revenues, General (Option C) is for general operations, and Internal Service (Option D) serves internal customers. Exam 2 stresses enterprise activities classification. Option B is correct.