To Close Encumbrances at the End of the Year Which

question 19

Multiple Choice

To close Encumbrances at the end of the year which of the following entries should be made?

• A)Debit Encumbrances; credit Fund balance.
• B)Debit Reserve for encumbrances; credit Encumbrances.
• C)Debit Fund balance; credit Encumbrances.
• D)No closing entry needed.

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Definitions:

William James

An American philosopher and psychologist, often referred to as the father of American psychology, known for his works on pragmatism and functionalism.

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A psychologist who studies how cultural traditions and social practices influence human behavior, thoughts, and emotions.

Cognitive Errors

Mistakes in reasoning, evaluating, remembering, or other cognitive processes, often occurring due to holding onto personal biases or irrational beliefs.