When the budget is recorded in the general ledger, the Encumbrances account is debited.

Question

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When a budget is recorded in the general ledger, the Encumbrances account is not debited. Instead, an encumbrance is typically recorded by debiting the Encumbrances account and crediting the Budgetary Control or Encumbrances Outstanding account to reserve funds for anticipated expenses, not when the budget itself is recorded.

When the Budget Is Recorded in the General Ledger, the Encumbrances