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If a capital project is incomplete at the end of a fiscal year, why is it considered

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If a capital project is incomplete at the end of a fiscal year, why is it considered desirable to close Encumbrances and all operating statement accounts at year-end? Why is it desirable to reestablish the Encumbrances account as of the first day of the following year?

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To facilitate preparation of financial statements at the end of the fiscal year all o...View the full answer


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