The Purpose of Encumbrance Accounting Is to

question 2

Multiple Choice

The purpose of encumbrance accounting is to

• A) Manage a government's cash flows.
• B) Avoid expenditures exceeding appropriations.
• C) Replace expense accounting in governments.
• D) Prevent government waste.

Understand the legal outcomes subsequent to tortious actions.

Distinguish between lawful and unlawful actions in specific tort scenarios.

Differentiate between positive and negative externalities.

Recognize the role of government interventions, such as subsidies and taxes, in internalizing externalities.

---

Definitions:

Invoice

A document issued by a seller to a buyer, detailing products or services provided, prices, and terms of payment.

Cheque

A document that is written, dated, and contains a signature, instructing a bank to pay a certain amount of money to either the person holding it or to an individual named in the document.

Credited

The action of officially recognizing or adding an amount to an account, often referring to the depositing of funds or acknowledgment of income earned.

Account

A record or statement of financial transactions pertaining to an individual, business, or other entity.