The primary objective of using an encumbrance system is to keep track of an organization's ________.
A)purchase of goods and services.
B)purchase of capital assets.
C)expenditures.
D)commitments made for the acquisition of goods and services.

Question

Quizplus · Accepted Answer

An encumbrance system is used to keep track of commitments made for the acquisition of goods and services, including purchase orders, contracts, and other obligations. It provides information on the amount of funds committed or earmarked for a particular purpose, which helps organizations to manage their budgets and avoid overspending. While encumbrance systems can be used to track expenses and purchases, they are primarily designed to monitor commitments and ensure that funds are allocated appropriately.

The Primary Objective of Using an Encumbrance System Is to Keep