Note: This Is a Kaplan CPA Review Question

question 8

Multiple Choice

Note: This is a Kaplan CPA Review Question
A budgetary fund balance - assigned in excess of a balance of encumbrances indicates

• A) A recording error.
• B) An excess of vouchers payable over encumbrances.
• C) An excess of purchase orders over invoices received.
• D) An excess of appropriations over encumbrances.

---

Definitions:

Direct Method

A method of allocating service department costs directly to production departments without any intermediate allocation steps.

Personnel Department

is the department within an organization responsible for hiring, training, and managing employees, as well as dealing with personnel-related issues.

Number Of Employees

The total number of individuals working for a company, including full-time, part-time, and temporary staff.

Direct Method

A method of allocating service departments' costs directly to production departments without intermediate allocations.