Which of the following statements is true? a. Encumbrances are equivalent to expenditures, and encumbrances outstanding at
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Which of the following statements is true?
a. Encumbrances are equivalent to expenditures, and encumbrances outstanding at the end of a year should be reported as liabilities.
b. No expenditure can be reported without first being encumbered.
c. Encumbrances are recorded at the estimated cost of goods ordered or services contracted for. The subsequent amount recognized as expenditures upon receipt of the goods or services must be equal to the encumbered amount.
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Related Book For
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
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