Which of the following depict the typical order of steps in the acquisition of goods and services by an activity accounted for by the General Fund?
A) Appropriation, disbursement, encumbrance, expenditure.
B) Appropriation, encumbrance, expenditure, disbursement.
C) Encumbrance, appropriation, expenditure, disbursement.
D) Encumbrance, expenditure, appropriation, disbursement.

Question

Quizplus · Accepted Answer

The typical order of steps in the acquisition of goods and services by an activity accounted for by the General Fund is appropriation, encumbrance, expenditure, and disbursement. Appropriation is the authorization to spend money, encumbrance is the commitment of funds for a specific purpose, expenditure is the actual payment for goods or services received, and disbursement is the actual outflow of cash. Therefore, the correct order of steps is appropriation, encumbrance, expenditure, and disbursement, which is depicted in option B.

Which of the Following Depict the Typical Order of Steps