The Fund Balance-Reserved for Encumbrances account can be reported in the General Fund's fund balance section of the balance sheet at the fund-based reporting level.

Question

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The Fund Balance-Reserved for Encumbrances account represents amounts committed for contracts or other obligations for which goods or services have not yet been received. It is a legitimate classification under the fund balance section of the General Fund in the fund-based financial statements, indicating resources that are not available for new commitments.

The Fund Balance-Reserved for Encumbrances Account Can Be Reported in the General