Question: How does accounting in a governmental fund for the purchase of supplies from an outside vendor differ from the purchase of supplies from an internal

How does accounting in a governmental fund for the purchase of supplies from an outside vendor differ from the purchase of supplies from an internal service fund?

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When recording a purchase from either an internal service fund or an external vendor a governmental fund will use encumbrance accounting When goods are received the encumbrance will be reversed and an expenditure will be recorded The primary difference from the perspective of the governmental fund is the amount recorded Purchases from outside vendors are recorded at the purchase price while purchases from an internal service fund are recorded at the cost to the government ... View full answer

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