During the Previous Year, Bane County Closed Its Encumbrances Account

question 14

Multiple Choice

During the previous year, Bane County closed its Encumbrances account.At the end of the previous year there was $5,000 of outstanding purchase commitments.To restore these commitments to the accounts, which of the following entries would be required?

• A)Debit Reserve for encumbrances $5,000; credit Encumbrances $5,000.
• B)Debit Encumbrances $5,000; credit Reserve for encumbrances $5,000.
• C)Debit Encumbrances $5,000; credit Fund balance $5,000
• D)Debit Fund balance $5,000; credit Reserve for encumbrances $5,000.

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Definitions:

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A marketing approach that involves changing advertising messages and tactics to fit cultural, linguistic, or regional differences among target audiences.

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The international trading system that allows goods, services, and finance to move freely across national borders, presenting opportunities and challenges for businesses worldwide.

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The addition of new variations to an existing product line, such as different flavors, sizes, or features, to appeal to more consumers.