Which two components are referred to as the sides of the budget?

The sides of the budget refer specifically to the components that represent the inflow and outflow of financial resources. In this context, the correct choice highlights the fundamental financial elements of a budget.

Revenues represent the income that is generated and expected to be received within a specific period. This could include taxes, fees, grants, and other income sources. Appropriations, on the other hand, refer to the allocation of funds that will be spent or used for specific purposes within that same period. They are the planned expenditures that the organization or municipality authorizes to meet its operational needs, projects, or services.

Therefore, by identifying revenues and appropriations as the sides of the budget, this choice emphasizes how revenue generation directly correlates with the spending plans of an organization, effectively encapsulating the essence of budget management. Understanding these sides is crucial for any public works manager because it affects decision-making regarding project funding, resource allocation, and overall financial health of the organization.