To Close Reserve for Encumbrances at the End of the Year

question 15

Multiple Choice

To close Reserve for encumbrances at the end of the year which of the following entries should be made?

• A)Debit Reserve for encumbrances; credit Fund balance.
• B)Debit Reserve for encumbrances; credit Encumbrances.
• C)Debit Fund balance; credit Reserve for encumbrances.
• D)No closing entry needed.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Market

An area or arena in which commercial dealings are conducted.

Pricing Objectives

Pricing objectives are the goals a company aims to achieve through its pricing strategies, such as maximizing profit, increasing market share, or targeting a specific market segment.

Components

Fundamental parts or elements that combine to form a complex system, mechanism, or product.