_____ Which statement is correct concerning encumbrances?
A) They are reported in the operating statement.
B) They always lapse at year-end.
C) They usually are reappropriated in the following year's budget if outstanding at the end of a year.
D) They immediately result in a reduction of the Unreserved Fund Balance account.
E) None of the above.

Question

Quizplus · Accepted Answer

Encumbrances represent commitments related to unperformed contracts for goods or services and are typically reappropriated in the following year's budget if they remain outstanding at the end of the year.

_____ Which Statement Is Correct Concerning Encumbrances