The purpose of an encumbrance is to: a. amend the budgeted appropriations. b. assist the administration to avoid overspending and plan for payment of expected liabilities c. record liabilities that will be paid beyond the period where funds are currently available. d. None of the above

The purpose of an encumbrance is to: a. amend the budgeted appropriations. b. assist the administration to avoid overspending and plan for payment of expected liabilities c. record liabilities that will be paid beyond the period where funds are currently available. d. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Budgeted Income Statement

Accounting is the process of recording business-related financial transactions. The process of accounting involves summarizing and analyzing the transactions. The financial statements which are prepared in accounting contain a summary of the various transactions that took place within a certain accounting period. Book-keeping or accounting is one of the most important activities of any business.

Question

The purpose of an encumbrance is to:

a.	amend the budgeted appropriations.
b.	assist the administration to avoid overspending and plan for payment of expected liabilities
c.	record liabilities that will be paid beyond the period where funds are currently available.
d.	None of the above

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