Which of the Statements Regarding the Accounting for Encumbrances Is

question 29

Multiple Choice

Which of the statements regarding the accounting for encumbrances is false?

• A) The budgetary entry to record an encumbrance would be a debit to Encumbrances Outstanding and a credit to Encumbrances.
• B) The budgetary entry to record an encumbrance would be a debit to Encumbrances and a credit to Encumbrances Outstanding.
• C) If the actual cost of a purchase exceeds the amount of the original encumbrance, the original encumbrance is still reversed at the original amount.
• D) The recording of an encumbrance is considered to be a budgetary entry.

---

Definitions:

Psychoactive Drugs

Substances that, when taken, alter perception, mood, consciousness, cognition, or behavior by affecting the brain's neurochemistry.

Pleasant Effects

Experiences or outcomes that are enjoyable or produce a sense of satisfaction and well-being.

Unpleasant Aftereffects

Unpleasant Aftereffects refer to negative reactions or consequences following an event, action, or process.

Chronic Pain

Pain that extends beyond the usual course of acute illness or healing, lasting more than three to six months and affecting a person's well-being.