The "Reserve for Encumbrances-Prior Year" Account Represents Amounts Recorded by a Governmental

question 1

Multiple Choice

The "reserve for encumbrances-prior year" account represents amounts recorded by a governmental unit for:

• A) anticipated expenditures in the next year.
• B) expenditures for which purchase orders were made in the prior year but disbursement will be in the current year.
• C) excess expenditures in the prior year that will be offset against the current-year budgeted amounts.
• D) unanticipated expenditures of the prior year that become evident in the current year.

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Definitions:

Analogical

Pertaining to analogy; the process of finding correspondences or logical relations between seemingly dissimilar things.

Directed Thinking

Thought that is focused, goal-oriented, and follows logical steps towards a specific conclusion.

Mental Set

The perspective that a person takes and the assumptions he makes in approaching a problem.

Analogical Representation

A mental representation of one thing that is similar in some way to another; used in problem-solving and reasoning.