The Expenditures account of a governmental unit is debited when:
A) the budget is recorded.
B) supplies are ordered.
C) supplies encumbered are received.
D) the supplies invoice is paid.

Question

Quizplus · Accepted Answer

When supplies encumbered are received, the Expenditures account of a governmental unit is debited to recognize the actual expense, moving the transaction from an encumbrance (commitment to spend) to an actual expenditure.

The Expenditures Account of a Governmental Unit Is Debited When