The "Unencumbered Balance" in an Expenditure Subsidiary Ledger Represents

question 32

Multiple Choice

The "Unencumbered Balance" in an expenditure subsidiary ledger represents

• A) Appropriation less expenditures.
• B) Appropriation less encumbrances.
• C) Appropriation less expenditures and encumbrances.
• D) Estimated revenue less appropriation.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year’s time or within the operating cycle of the business, whichever is longer.

Current Liabilities

Obligations that a company expects to pay within the coming year or its operating cycle, whichever is longer.

Short-Term Creditors

Lenders or suppliers who provide credit with a repayment period that is typically less than one year, often in the form of commercial paper or lines of credit.

Liquidity

A measure of a company's or an individual's ability to meet short-term financial obligations; the ease with which assets can be converted into cash.