The basis of accounting for a governmental fund budget should be?

When goods that have already been approved for purchase are received but have not yet been paid for, which of the following local government accounts should be increased?

        Encumbrances             Expenditures

A.             Yes                            Yes

B.             Yes                            No

C.             No                             No

D.             No                             Yes

The basis of accounting for a governmental fund budget should be?

A. Cash basis.

B. Accrual basis.

C. Modified accrual basis.

D. Determined by the entity’s governing body or by law or regulation

Answer rating: 100% (QA)

A When the goods are received but not paid then encumbrances should not be increas... View the full answer