Which of the statements regarding the accounting for encumbrances is false? A. The budgetary entry to record
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Question:
Which of the statements regarding the accounting for encumbrances is false?
A. The budgetary entry to record an encumbrance would be a debit to Encumbrances Outstanding and a credit to Encumbrances.
B. The budgetary entry to record an encumbrance would be a debit to Encumbrances and a credit to Encumbrances Outstanding.
C. If the actual cost of a purchase exceeds the amount of the original encumbrance, the original encumbrance is still reversed at the original amount.
D. The recording of an encumbrance is considered to be a budgetary entry.
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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