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The correct answer is "it shows a surplus." Surplus occurs when you have more revenues than expenditures, more receipts than disbursements, or more assets than liabilities. It is, in other words, an excess or a superabundance. The word comes from the Latin word superplus (literally "over" and "more").

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When revenues are higher than expenditures in a budget, it depicts a surplus.

What is a Budget?

This is defined as an estimation of revenue and expenses over a given period of time.

In a situation where the revenue is higher than the expenditure in a budget, we can infer that is surplus as more funds are available for its execution.

Read more about Budget here https://brainly.com/question/13964173

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