A Governmental Entity Has Formally Integrated the Budget into Its

question 42

Multiple Choice

A governmental entity has formally integrated the budget into its accounting records and uses encumbrance accounting. During the year the government ordered but had not yet received a new police car. What effect will this event have on the unencumbered balance in the account "Expenditures-capital outlay, police department"?

• A) The balance in the account will not be affected until the police car is received.
• B) The balance in the account will be increased.
• C) The balance in the account will be decreased.
• D) Purchase orders never affect any budgetary account balances.

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Definitions:

Automated Methods

Techniques or systems that operate with minimal human intervention, often involving machinery or software, to increase efficiency and accuracy in processes or tasks.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Need For Workers

The demand for labor or employees by businesses and industries to perform tasks and produce goods and services.

Productivity Of Labor

A measure of economic performance that calculates the output of goods and services produced per unit of labor input.