When is an obligation recorded under an encumbrance system?
A)When a purchase order is issued.
B)When goods or services are received.
C)When payment is made.
D)None of the above.

Question

Quizplus · Accepted Answer

An obligation is recorded under an encumbrance system when a purchase order is issued. This system is used in governmental accounting to reserve funds for specific purposes or expenditures, ensuring that the budget is not overspent.

When Is an Obligation Recorded Under an Encumbrance System