Any balance in Encumbrances Outstanding that remains at the end of the fiscal year is reported as a line item under Fund Balances on the governmental funds balance sheet.

Question

Quizplus · Accepted Answer

Encumbrances Outstanding at the end of the fiscal year are not reported as a line item under Fund Balances on the governmental funds balance sheet. Instead, they are typically cancelled or reestablished in the new fiscal year's budget, as they represent commitments to spend rather than actual expenditures.

Any Balance in Encumbrances Outstanding That Remains at the End