When an activity accounted for by the General Fund results in issuance of purchase orders or contracts for goods or services a record must be kept, but no journal entries in the General Fund are necessary.

Question

Quizplus · Accepted Answer

When an activity accounted for by the General Fund results in the issuance of purchase orders or contracts for goods or services, an encumbrance is recorded in the general ledger to indicate the commitments made, affecting the budgetary accounts before the actual expenditure occurs.

When an Activity Accounted for by the General Fund Results