Which of the following describes a budget balance?

A budget balance occurs when revenues and expenses are equal, which means that the amount of money coming in is exactly matched by the amount of money going out. This situation indicates that the budget is neither in deficit (where expenses exceed revenues) nor in surplus (where revenues exceed expenses). A balanced budget is crucial for maintaining financial stability and ensuring that an individual, organization, or government can meet its obligations without incurring debt.

In this context, the other options describe different financial scenarios. A situation where there is more revenue than expenses refers to a surplus, which can be beneficial for future investments or savings. Conversely, when expenses exceed revenues, it results in a budget deficit, which can lead to debt accumulation. Lastly, the allocation of surplus funds for future investments pertains to the strategic use of excess funds but does not define the concept of budget balance itself, which is focused solely on the equality of revenues and expenses.